Gift Tax Calculator 2025
Federal gift tax applies to gifts above the annual exclusion or lifetime exemption. For 2025, the annual exclusion is dollar 19,000 per recipient; married couples may elect gift-splitting to give dollar 38,000 per recipient without reporting. The lifetime exemption is dollar 13,990,000 per individual (unified with the estate tax). Gifts at or below the annual exclusion are completely tax-free with no Form 709 filing required. Taxable gifts (those exceeding the annual exclusion) must be reported on Form 709 and reduce your remaining lifetime exemption dollar for dollar. The gift tax rate above the exemption is 40%. Special exclusions apply: unlimited direct educational payments (tuition to institutions) and unlimited direct medical payments (to providers). The 529 superfunding election allows dollar 95,000 per beneficiary (5 years of annual exclusions) into education savings accounts. The recipient never pays gift tax. This calculator shows how much of your gifts use the annual exclusion versus the lifetime exemption and estimates any gift tax owed. Sourced from IRS Rev Proc 2024-40 and IRC Chapter 12.
Giving $25,000 to each of 3 recipients: annual exclusion covers $57,000, leaving $18,000 as taxable gifts this year. Remaining lifetime exemption: --. Gift tax owed: --.
How the gift tax is calculated
The US gift tax (IRC Chapter 12) is unified with the estate tax: both share the same lifetime exemption of $13,990,000 for 2025 (IRS Rev Proc 2024-40). Most people never owe gift tax because the annual exclusion and lifetime exemption together cover the vast majority of gifts.
Taxable gift per recipient = max(0, gift - annual exclusion - educational/medical exclusions)
Total taxable gifts this year = sum of taxable gifts to all recipients
Running lifetime total = prior lifetime taxable gifts + total taxable gifts this year
Gift tax owed = max(0, running lifetime total - $13,990,000) x 40%
2025 key figures
| Rule | 2025 amount | Source |
|---|---|---|
| Annual exclusion (per recipient) | $19,000 | IRS Rev Proc 2024-40 |
| Annual exclusion with gift-splitting (per recipient) | $38,000 | IRC Section 2513 |
| Lifetime exemption (unified credit) | $13,990,000 | IRS Rev Proc 2024-40 |
| Gift tax rate above lifetime exemption | 40% | IRC Section 2502 |
| 529 superfunding (5-year election) | $95,000 per beneficiary | IRC Section 529(c)(2)(B) |
| Direct educational payments | Unlimited (to institution directly) | IRC Section 2503(e) |
| Direct medical payments | Unlimited (to provider directly) | IRC Section 2503(e) |
Worked example
Giving $25,000 each to 3 recipients, no gift-splitting, no prior lifetime taxable gifts:
- Annual exclusion per recipient: $19,000
- Taxable gift per recipient: $25,000 - $19,000 = $6,000
- Total taxable gifts this year: 3 x $6,000 = $18,000
- Running lifetime total: $0 + $18,000 = $18,000
- Lifetime exemption remaining: $13,990,000 - $18,000 = $13,972,000
- Gift tax owed: max(0, $18,000 - $13,990,000) x 40% = $0
- Form 709 filing required: yes (gifts exceeded $19,000 annual exclusion)
Gift tax calculator: frequently asked questions
What is the 2025 annual gift tax exclusion?
The annual exclusion for 2025 is $19,000 per recipient, increased from $18,000 in 2024. You can give up to $19,000 to any number of individuals in 2025 without those gifts counting toward your lifetime exemption or requiring a Form 709 filing. The annual exclusion is indexed for inflation in $1,000 increments. Source: IRS Rev Proc 2024-40.
Do I have to pay gift tax on gifts under $19,000?
No. Gifts at or below the $19,000 annual exclusion per recipient are completely excluded from the gift tax system. You do not need to report them on Form 709 or subtract them from your lifetime exemption. The recipient never pays gift tax in any amount.
When do I need to file IRS Form 709?
You must file Form 709 (United States Gift and Generation-Skipping Transfer Tax Return) if you give any individual more than $19,000 in 2025, or if you give gifts to a skip person (such as a grandchild), or if you are electing gift-splitting with your spouse. Form 709 is due by the tax return due date for the year of the gift (April 15 of the following year, with extensions). Note: filing Form 709 does not mean you owe gift tax - most filers simply report the taxable gift and reduce their remaining lifetime exemption.
What is gift-splitting for married couples?
Married couples may elect gift-splitting on Form 709, which treats a gift made by one spouse as if each spouse gave half of it. This effectively doubles the annual exclusion to $38,000 per recipient per year. Both spouses must consent to the election, and it applies to all gifts made during the calendar year. Source: IRC Section 2513.
Does the recipient pay gift tax?
No. Under US law, the donor (the person giving the gift) is responsible for any gift tax owed. The recipient does not pay gift tax and generally does not report the gift as income. The exception is certain income-producing property where the recipient inherits the donor's cost basis.
What is 529 superfunding and how does the $95,000 amount work?
529 superfunding is a special election that allows a donor to contribute up to 5 years' worth of annual exclusions to a 529 education savings plan in a single year without it counting as a taxable gift. For 2025, that is 5 x $19,000 = $95,000 per beneficiary. The donor must make the election on Form 709 and cannot make additional exclusion gifts to the same beneficiary during the 5-year period. Source: IRC Section 529(c)(2)(B).
Official sources
- 2025 annual exclusion and lifetime exemption: IRS Rev Proc 2024-40.
- Gift tax overview: IRS Gift Tax.
- Form 709 (US Gift Tax Return): IRS Form 709 and Instructions for Form 709.
- Tuition and medical exclusions: IRC Section 2503(e) (26 U.S.C. 2503(e)).
- Gift-splitting: IRC Section 2513 (26 U.S.C. 2513).
Reviewed by the CalculatorHub team, edited by James Graham, 13 June 2026. See our methodology. General information only, not tax or legal advice. Consult a qualified tax professional before making large gifts.