How this calculator works
Gifts up to the annual exclusion per recipient ($19,000 in 2026, or $38,000 when spouses split gifts) are tax-free and don't need reporting. Anything above it counts against your lifetime exemption and requires Form 709. Tax is only owed, at 40%, once total lifetime taxable gifts exceed the exemption.
Worked example
With the example values below: Gift tax owed, $0 ($41,000 counts against your lifetime exemption). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Gift amount per recipient | $60,000 |
| Number of recipients | 1 |
| Split with spouse? | No |
| Lifetime exemption already used | $0 |
Gifts that never count
Paying tuition or medical bills directly is one of the simplest ways to help family without using any exemption.
- Gifts up to the annual exclusion per recipient: $19,000 in 2026, or $38,000 when spouses split gifts.
- Tuition paid directly to a school, in any amount.
- Medical expenses paid directly to a provider, in any amount.
- Gifts to a US citizen spouse, in any amount.
- Gifts to qualified charities and political organizations.
Filing Form 709
If you give one person more than the annual exclusion in a year, you file Form 709 by the tax deadline the following April. Filing doesn't usually mean paying: the excess just reduces your lifetime exemption, which is $15 million per person in 2026 and indexed to inflation after that.
Married couples who split gifts must each file. Keep records of large gifts, since they affect your estate later.
Gifts and your estate
The lifetime gift exemption and the estate tax exemption are the same pool. Taxable gifts during life reduce what can pass free of estate tax at death. Recipients of gifted assets take over your cost basis, while inherited assets get a stepped-up basis, so gifting highly appreciated stock can create a larger tax bill for the recipient than leaving it in your estate.
Contributions to a 529 plan can use five years of annual exclusions at once, up to $95,000 per beneficiary in 2026, with an election on Form 709.
Frequently asked questions
How much can you gift tax-free in 2026?
$19,000 per recipient, or $38,000 for married couples splitting gifts. Larger gifts use part of your $15 million lifetime exemption but usually don't create a tax bill.
Who pays gift tax, the giver or the receiver?
The giver, and only after total lifetime taxable gifts exceed the exemption. Recipients don't pay tax on gifts they receive.
Do I have to report a gift over $19,000?
Yes. File Form 709 for the year of the gift. No tax is due unless your lifetime taxable gifts exceed the exemption.
What is the lifetime gift tax exemption for 2026?
$15 million per person, or $30 million for a married couple, indexed to inflation in later years. It's shared with the estate tax exemption.
Is paying someone's tuition a taxable gift?
Not if you pay the school directly. Direct payments of tuition and medical expenses are excluded from gift tax in any amount.
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Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.