Gift Tax Calculator

Check whether your gifts are subject to federal gift tax. The 2024 annual exclusion is $18,000 per recipient. Gifts above this count against your $13.61M lifetime exemption but rarely trigger actual tax.

🎁 Gift Tax💰 Taxable Gift = Gift − Annual Exclusion ($18,000)

Gift amount per recipient ($)

Number of recipients

Filing status

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Formula & Reference

Variable	Formula	Units
Gift Tax Calculator	Taxable Gift = Gift − Annual Exclusion ($18,000)	$ toward lifetime exemption

Step-by-Step Examples

Example 1

Within Exclusion

$15,000 to 4 family members, single.

Each gift $15k < $18k exclusion
No taxable gifts | No Form 709 needed

✓ $0 taxable — all excluded

Example 2

Above Exclusion

$30,000 to 2 recipients, single.

Taxable per recipient: $30k−$18k = $12k
Total taxable: $24k (counts against $13.61M lifetime)
No tax DUE now | Must file Form 709

✓ $24k reduces lifetime exemption, no tax due

Example 3

Married Gift-Splitting

$30,000 to 1 recipient, married couple splitting.

Joint exclusion: $36,000
$30k < $36k — fully excluded
Must elect gift-splitting via Form 709

✓ $0 taxable — fully excluded with splitting

Real-World Applications

🎁

Estate Planning

Annual gifting is one of the most effective estate tax reduction strategies.

🎓

529 Superfunding

Give up to $90k per beneficiary ($180k/couple) treated as 5 years of exclusion.

💰

Business Succession

Gradually gift business interests tax-efficiently over many years.

🏛️

Estate Reduction

Regular annual gifting systematically reduces taxable estate.

Common Mistakes to Avoid

⚠️

Gift tax is due immediately on large gifts

Gift tax is only due after exhausting your entire $13.61M lifetime exemption. Most people can give millions before owing any actual gift tax.

⚠️

Not filing Form 709 when required

Any gift above the annual exclusion to one person requires Form 709, even if no tax is owed. Failure to file disrupts lifetime exemption tracking.

⚠️

Forgetting direct-payment exclusions

Direct tuition payments to schools and medical payments to providers are unlimited gift-tax-free — pay the institution directly, not the person.

Frequently Asked Questions

Annual gift exclusion 2024? ▾

$18,000 per recipient, unlimited recipients. Married couples: $36,000 per recipient with gift-splitting.

Is gift tax due on excess? ▾

Only after exhausting your full $13.61M lifetime exemption. Taxable gifts reduce that exemption; actual tax at 40% comes only after it's gone.

Unlimited gift exclusions? ▾

Direct tuition to educational institutions, direct medical payments, gifts to spouse (unlimited marital deduction), and charitable gifts.

Does gift tax apply to graduation money? ▾

Gifts under $18,000/year per person are fully excluded with no filing. Gift tax is designed for large wealth transfers.

Gift tax vs estate tax? ▾

Shared $13.61M exemption. Taxable lifetime gifts reduce the exemption available at death. Coordinated estate planning manages both together.