Gift Tax Annual Exclusion Calculator

The annual gift tax exclusion for 2025 is $19,000 per recipient per year, up from $18,000 in 2024. You can give up to $19,000 to as many people as you like without filing a gift tax return or using any lifetime exemption. Married couples can combine their exclusions to give $38,000 per recipient per year through gift-splitting.

The federal lifetime gift and estate tax exemption is $13,990,000 per person in 2025 (indexed for inflation). Gifts exceeding the annual exclusion are taxable gifts that reduce your lifetime exemption dollar-for-dollar. Only after exhausting the lifetime exemption do you actually owe gift tax. The exemption is unified with the estate tax exemption.

You must file IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return) if you make gifts to any one person exceeding the annual exclusion in a calendar year. The return is due by the tax filing deadline (April 15, or October 15 with extension) of the following year. You do not owe tax until you exhaust your lifetime exemption.

In addition to the annual exclusion, certain gifts are completely excluded from gift tax: direct payments of tuition to an educational institution (not reimbursements to the student); direct payments of medical expenses to a medical provider; gifts to a US citizen spouse (unlimited marital deduction); and gifts to qualified charities (no limit). These exclusions are in addition to and separate from the $19,000 annual exclusion.

Gifts over the annual exclusion are 'taxable gifts' but you typically do not owe gift tax unless you have exhausted your $13,990,000 lifetime exemption. Instead, you file Form 709 to report the taxable gift and reduce your remaining lifetime exemption. Most people never owe gift tax. The gift reduces the estate tax exemption available at death by the same amount.