The 2026 gift tax annual exclusion

Annual exclusion versus lifetime exclusion

These are two different amounts that people often both call the “gift tax exemption.”

• Annual exclusion: $19,000 per recipient for 2026. It resets every year and applies separately to each person you give to.
• Lifetime basic exclusion: $15,000,000 for 2026. It is shared between gifts made during life and the estate at death. Gifts above the annual exclusion are reported and taken into account against it, together with taxable gifts from earlier years.
• Because the lifetime amount depends on your full gift history, Gift.tax doesn't calculate how much of it you have left.
• These amounts describe the rules for US citizens and residents. Donors who are not US citizens or residents face materially different rules and should work with a professional familiar with cross-border gift tax.

Is it per person, per donor or per family?

Per donor, per recipient. Each person who gives has their own $19,000 exclusion for each person they give to. A family does not share one exclusion, and marriage alone doesn't double it.

Do several gifts to the same person add up?

Yes. One donor's gifts to the same recipient during the calendar year are added together before comparing them with $19,000. Tuition paid directly to a school and medical expenses paid directly to a provider are excluded separately and aren't added in. Keep the date and amount of each gift so the yearly total is accurate.

Gifts that generally don't use the annual exclusion

• Tuition paid directly to a school and medical expenses paid directly to a provider (the educational and medical exclusions).
• Gifts to your spouse. If your spouse is not a US citizen, different limits apply — have a qualified tax professional review those gifts.
• Gifts to a political organization for its use.
• Gifts to qualifying charities, which are deductible for gift tax purposes.

Present interests only

The annual exclusion applies to gifts the recipient can use, possess and enjoy now. A gift of a future interest — where those rights begin only at a later date, as with many gifts in trust — can't use the annual exclusion, and the IRS instructions say a return is generally required even when it's under $19,000. Have a qualified tax professional review gifts in trust.

Married couples and gift splitting

If each spouse gives from their own money, each is a separate donor with a separate $19,000 exclusion for each recipient. Gift splitting is different: it's an election made on Form 709, with both spouses' consent, to treat gifts either spouse makes as made half by each. A return is required to split gifts regardless of the amount.

Key dates

• December 31, 2026: gifts made by the end of the year belong to 2026.
• April 15, 2027: Form 709 for 2026 gifts is generally due (the next business day if April 15 falls on a weekend or legal holiday).
• An income tax extension (Form 4868) also extends the time to file Form 709; otherwise use Form 8892. Neither extends the time to pay.

Examples

Records to keep

• Date, recipient and amount of every gift
• Which account or property each gift came from, and whose it was
• Running total per recipient for the year
• Copies of any earlier Form 709s