Gift Tax Calculator
See how much of a gift exceeds the exclusion.
Adjust to current year
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Results update as you type.
This calculator is for general guidance only and is not tax advice. Rules vary by jurisdiction and year; confirm with a qualified professional.
How it works
US gift tax rules let you give a certain amount to any number of people each year with no tax and no paperwork, and this calculator shows how much of a gift is covered and how much, if any, counts against your lifetime exemption. You enter the gift amount, the annual exclusion in effect, and how many recipients you are splitting the gift among, and it returns the tax-free total from the exclusions and the excess that must be reported. The annual exclusion is per recipient per year, so you can give that amount to each of many people — children, grandchildren, friends — every year without consequence. Importantly, giving above the exclusion rarely means paying gift tax. Instead, the excess is subtracted from your very large lifetime gift and estate tax exemption and reported on a gift tax return; actual gift tax is only owed once total lifetime gifts exceed that exemption. Certain gifts are always exempt, including those to a spouse, direct payments of someone's tuition or medical bills, and gifts to charity. Married couples can combine their exclusions to give twice as much. This is an estimate; consult a tax professional for large gifts. Enter your gift, exclusion, and recipients to see the breakdown.
Tax-free = exclusion × recipients; excess = gift − tax-free
Each recipient can receive up to the annual exclusion tax-free, so multiplying the exclusion by the number of recipients gives the total you can give without any gift-tax reporting. Any amount above that does not usually mean tax is owed, but it reduces your lifetime exemption and requires a gift tax return.
Source:IRS gift tax rules
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
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Enter your values
Enter gift amount.
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Adjust the options
Adjust annual exclusion per recipient and number of recipients if they apply — sensible defaults are already set.
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Read your result
Tax-free total (exclusions) updates instantly as you type — no button to press.
Frequently asked questions
How much can I gift tax-free?
You can give up to the annual exclusion amount to each recipient every year with no gift tax and no reporting. Because it is per recipient, you can give that amount to many different people each year. Married couples can combine their exclusions to give twice as much per recipient. Enter your figures to see your tax-free total.
Do I owe tax if I gift more than the exclusion?
Usually not right away. Gifts above the annual exclusion are subtracted from your lifetime gift and estate tax exemption, which is very large, and reported on a gift tax return. Actual gift tax is owed only after your cumulative lifetime gifts exceed that exemption. So most people who exceed the annual exclusion file a form but pay no tax.
What is the annual gift tax exclusion?
The annual exclusion is the amount you can give each recipient per year without any gift tax consequences or reporting. It is set by the IRS, indexed for inflation, and rises periodically. Because it resets each year and applies per person, consistent yearly gifting is a common way to transfer wealth gradually and reduce a future taxable estate.
Which gifts are always tax-free?
Several gifts are exempt regardless of amount: gifts to your spouse (if a US citizen), direct payments of someone's tuition made to the school, direct payments of someone's medical expenses made to the provider, and gifts to qualified charities. These do not use your annual exclusion or lifetime exemption, making them powerful ways to help others tax-free.
Does the recipient pay gift tax?
No. In the US, the giver is responsible for any gift tax, not the recipient, and recipients do not report gifts as income. In the vast majority of cases no tax is due anyway because of the annual exclusion and large lifetime exemption. The recipient simply receives the gift, though the giver may need to file a return.