The gift tax annual exclusion lets you give up to $19,000 per recipient in 2026 without filing Form 709 or reducing your lifetime exemption. Use this tool to determine whether your gift triggers a filing requirement.
Gift Details — 2026
How to Use the Gift Tax Annual Exclusion in 2026
The gift tax annual exclusion is one of the most powerful and underutilized estate planning tools available. In 2026, you can give up to $19,000 per recipient — to any number of people — without filing Form 709 or touching your lifetime exemption. A married couple using gift splitting can double that to $38,000 per recipient per year.
Step 1: Enter Your Gift Amount
Enter the total value of the gift. For property, use fair market value. For cash, enter the dollar amount. If you're making multiple gifts to the same recipient during the year, enter the combined total.
Step 2: Select the Gift Type
Not all transfers are treated the same. Medical payments made directly to a provider (hospital, doctor, pharmacy) are completely excluded — they don't count against the annual or lifetime exclusion. The same applies to tuition payments made directly to an educational institution. Gifts to a US citizen spouse qualify for the unlimited marital deduction. Gifts to charity qualify for the charitable deduction.
Step 3: Understand Form 709
Form 709 is required when you give more than $19,000 to any single recipient in 2026 (unless the gift qualifies for a complete exclusion). The form is due April 15 with your income tax return. Filing Form 709 doesn't mean you owe tax — it means the excess counts against your lifetime exemption of approximately $13.99 million. Tax is only due if you exhaust the lifetime exemption.
The 2025/2026 Sunset Provision
The current $13.99M lifetime exemption was created by the Tax Cuts and Jobs Act of 2017. Under current law, this exemption is scheduled to drop by approximately 50% (to roughly $7 million per person) after December 31, 2025, unless Congress acts to extend it. This "sunset" is prompting many high-net-worth families to accelerate large gifts before the window closes.
FAQ
What is the 2026 annual gift tax exclusion?
The annual gift tax exclusion for 2026 is $19,000 per recipient (indexed from $18,000 in 2024, estimated at $19,000 for 2025-2026). You can give up to $19,000 to any number of people each year without filing Form 709 or using any of your lifetime exemption. A married couple using gift splitting can give $38,000 per recipient per year.
What is the 2026 lifetime gift and estate tax exemption?
The unified lifetime gift and estate tax exemption for 2026 is approximately $13.99 million per person (indexed for inflation). Gifts exceeding the annual exclusion count against this lifetime amount. The exemption is scheduled to drop by approximately 50% (to ~$7 million) after December 31, 2025, unless Congress acts — this is the 2025 sunset provision that many families are planning around.
When must I file Form 709?
You must file Form 709 when: you give more than $19,000 to any single recipient in 2026, you make gifts that qualify for the marital or charitable deduction, you make gifts of future interests, or you elect gift splitting with your spouse. Form 709 is due April 15 (same as your income tax return) with an automatic extension available.
Are medical and tuition payments subject to gift tax?
No. Payments made directly to a medical provider or educational institution on behalf of another person are completely excluded from gift tax — they do not count against the annual or lifetime exclusion. The payment must go directly to the institution, not to the individual. This is a powerful planning tool.
Is this tool free?
Yes, completely free with no signup required. For educational purposes only — gift and estate tax planning is complex. Consult an estate planning attorney. 2026 figures are estimated based on inflation indexing.