Gift Tax Calculator
Subtract the annual exclusion from a gift to see taxable amount and leftover exclusion.
What it does
Cash and property gifts above a yearly line may need a tax return even when no tax is due. The line is the annual exclusion per recipient, $19,000 for 2026, and only the excess over that line counts as a taxable gift.
The tool above takes the gift amount and the annual exclusion. It returns the taxable amount, the exclusion used, and the remaining exclusion, so a $25,000 check to one child reads as $6,000 to report with zero left.
This math fits present gifts of cash to one person. It does not fit tuition or medical payments made directly to providers, gifts to a spouse, gifts to charity, or split gifts where two spouses each use an exclusion.
IRS gift guidance draws the same bands: gifts at or below the yearly exclusion need no return, while larger gifts need Form 709 with lifetime exemption tracking. The donor generally files and pays, not the recipient.
Enter each recipient separately. Two children at $19,000 each use two exclusions and owe no return, while one child at $38,000 uses one exclusion and reports $19,000.
How to use
- Enter the full gift to one recipient in the year.
- Enter the annual exclusion for that year, 19000 for 2026.
- Read taxable amount first for the Form 709 line.
- Read exclusion used to confirm the applied slice.
- Read remaining exclusion for extra gifts to the same person.
- Repeat per recipient since exclusions do not pool.
Formula
- gift
- Total gifts to one recipient in the calendar year.
- exclusion
- Yearly tax free amount per recipient.
- taxable
- Excess over exclusion reported on Form 709.
Exclusion is per recipient per year. A zero gift gives zero taxable with full exclusion left. Update the exclusion yearly since the IRS resets the figure with inflation.
Worked example
Example: $25,000 gift with $19,000 exclusion
Gift amount 25000 to one recipient, annual exclusion 19000 for 2026.
- Taxable: 25000 - 19000 = $6,000.00.
- Used: smaller of 25000 and 19000 is $19,000.00.
- Left: 19000 - 25000 floors at $0.00.
- Tool shows taxable $6,000.00, used $19,000.00, left $0.00.
- Split check: two $12,500 gifts to two people each sit under exclusion with zero taxable.
Reference table
| Gift | Taxable | Left |
|---|---|---|
| $15,000.00 | $0.00 | $4,000.00 |
| $19,000.00 | $0.00 | $0.00 |
| $25,000.00 | $6,000.00 | $0.00 |
Limits
- Per recipient math only. Multi person gifts need one run each.
- Ignores lifetime exemption and actual tax due after reporting.
- Tuition, medical, spouse, and charity gifts use other rules.
- Split gifts between spouses double the exclusion with consent.
Common mistakes
- Pooling one exclusion across several recipients.
- Adding separate gifts to one person without summing first.
- Using last year exclusion after inflation updates.
- Assuming no return means no lifetime tracking.
- Treating the recipient as the filer instead of the donor.
Try it yourself
Quick checks. Answers sit tucked under each question.
Gift $15,000 with $19,000 exclusion?
Taxable $0.00, used $15,000.00, left $4,000.00.
Gift $50,000 with $19,000 exclusion?
Taxable $31,000.00, used $19,000.00, left $0.00.
Gift $19,000 with $19,000 exclusion?
Taxable $0.00, used $19,000.00, left $0.00.
Questions
How is taxable gift figured?
Gift minus annual exclusion, floored at zero. $25,000 minus $19,000 is $6,000.
What is the 2026 annual exclusion?
$19,000 per recipient. The IRS table holds 2025 and 2026 both at $19,000.
Who pays gift tax?
The donor generally files Form 709 and uses lifetime exemption. Recipients rarely owe on the gift.
Do I split gifts to two children?
Run each child separately. Each has a full exclusion for the year.
What gifts escape entirely?
Direct tuition or medical payments, gifts to a spouse, and qualifying charity gifts under set rules.
Does no tax due mean no return?
No. Gifts above exclusion still need Form 709 to track lifetime exemption even when cash tax is zero.