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Gift Tax Calculator
See how a gift is treated under US federal rules: what the annual exclusion covers, what counts against your lifetime exemption and whether any tax is due. Enter the details, then press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
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How the gift tax calculator works
The tool applies the federal rules in two steps. First it removes the annual exclusion, which is per recipient, so a gift split across several people is shielded more. Whatever is left is the taxable gift that counts against your lifetime exemption.
Next it checks how much lifetime exemption you have left. The taxable gift reduces that balance, and only if the exemption runs out does any tax apply, at a flat 40 percent on the excess. For most people the exemption easily absorbs the gift, so the tax is zero.
A quick example
Give one person $50,000 in 2025 as a single donor. The first $19,000 is excluded, so $31,000 is a taxable gift. With your full lifetime exemption available, that $31,000 simply reduces your exemption to about $13.96 million and no tax is owed, though Form 709 is still required.
Things to keep in mind
This calculator uses 2025 federal figures and ignores state gift taxes and special rules such as the unlimited spousal and tuition exclusions. Always confirm with the IRS gift tax guidance or a tax professional. To plan ahead, see our estate tax calculator.
Frequently asked questions
How much can I gift tax free each year?
In 2025 you can give up to $19,000 per recipient per year with no gift tax and no reporting. A married couple can combine their exclusions to give up to $38,000 to each person through gift splitting.
What is the lifetime gift exemption?
Gifts above the annual exclusion do not trigger tax right away. Instead they reduce your lifetime exemption, which is $13.99 million per person in 2025 and is shared with the estate tax. Tax is owed only once that exemption is used up.
Who pays the gift tax?
The person making the gift is responsible for any gift tax, not the recipient. In practice very few people ever owe it because the lifetime exemption is so large. The top federal gift tax rate is 40 percent.
Do I need to file a gift tax return?
If you give any single person more than the annual exclusion in a year, you generally must file IRS Form 709, even when no tax is due. The form tracks how much of your lifetime exemption you have used.
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