Gift Tax Calculator

Calculate gift tax using the 2024 annual exclusion ($18,000/recipient) and lifetime exemption ($13.61 million). Determine if your gifts trigger a tax filing requirement.

Gift Details

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Cumulative taxable gifts from prior years

Enter your gift details and click Calculate to determine gift tax implications.

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Pro Tip

Pay tuition or medical bills directly to the institution/provider to transfer unlimited amounts without using any of your annual exclusion or lifetime exemption.

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Understanding Federal Gift Tax

The federal gift tax applies when you transfer property to someone without receiving full value in return. For 2024, you can give up to $18,000 per recipient per year without any gift tax consequences. This is called the annual exclusion.

Married couples can "split" gifts, effectively doubling the annual exclusion to $36,000 per recipient. Gift splitting requires both spouses to consent and file a gift tax return (Form 709), even though no tax is owed.

Gifts exceeding the annual exclusion count against your lifetime exemption of $13.61 million (2024), which is shared with the estate tax exemption. No actual gift tax is owed until you have used your entire lifetime exemption.

Certain transfers are not considered taxable gifts: payments made directly to educational institutions for tuition, payments made directly to medical providers, gifts to a spouse (unlimited marital deduction), and gifts to qualified charities.

Gift Tax Calculation

Taxable Gift = Gift Amount - Annual Exclusion ($18,000 per recipient)

Where:

Annual Exclusion = $18,000 per recipient for 2024 ($36,000 if gift splitting)

Lifetime Exemption = $13.61M per individual (shared with estate tax exemption)

Tax Rate = 40% on amounts exceeding the lifetime exemption

Example

Single person gifts $50,000 to one recipient:

  • • Gift amount: $50,000
  • • Annual exclusion: $18,000
  • • Taxable gift: $50,000 - $18,000 = $32,000
  • • Lifetime exemption used: $32,000 (of $13.61M available)
  • • Actual tax owed: $0 (covered by lifetime exemption)

Frequently Asked Questions

Do I have to pay gift tax on gifts under $18,000?
No. For 2024, gifts of $18,000 or less per recipient fall within the annual exclusion and require no gift tax return or tax payment. You can give $18,000 to as many different people as you want without any gift tax implications.
What is gift splitting?
Gift splitting allows married couples to treat a gift made by one spouse as if each spouse gave half. This effectively doubles the annual exclusion to $36,000 per recipient. Both spouses must consent and file Form 709, even if no tax is owed.
When do I actually owe gift tax?
You owe gift tax only after your cumulative taxable gifts (amounts above the annual exclusion) exceed your lifetime exemption of $13.61 million. For most people, no actual gift tax is ever owed. However, you must file Form 709 for any gift exceeding the annual exclusion.
Are tuition and medical payments considered gifts?
No, if you pay them directly to the institution or provider. Payments made directly to educational institutions for tuition (not room and board) and directly to medical providers for medical care are exempt from gift tax, regardless of amount.
Does the lifetime gift exemption reduce my estate tax exemption?
Yes. The gift tax and estate tax exemptions are unified. Using $1 million of your lifetime gift exemption reduces your available estate tax exemption by the same $1 million.