2026 IRS Gift Tax Annual Exclusion: Official Amounts, Rates & Rules

## 2026 IRS Gift Tax Annual Exclusion: Official Amounts and Rules **Quick answer:** The IRS annual gift tax exclusion for 2026 is **$19,000 per recipient** (up from $18,000 in 2025). The lifetime estate and gift tax basic exclusion amount for 2026 is **$13,990,000 per individual** ($27,980,000 for married couples using portability). These figures are official IRS amounts adjusted for inflation under IRC §2503(b) and §2010(c). --- ### 2026 IRS Gift Tax Key Figures at a Glance | IRS Parameter | 2026 Amount | 2025 Amount | Change | |---|---|---|---| | **Annual gift tax exclusion** | **$19,000** | $18,000 | +$1,000 | | **Lifetime basic exclusion (estate & gift)** | **$13,990,000** | $13,990,000 | — | | **Married couple combined exemption** | **$27,980,000** | $27,980,000 | — | | **Annual exclusion for non-citizen spouses** | **$190,000** | $185,000 | +$5,000 | | **Top gift tax rate** | **40%** | 40% | — | *Source: IRS Revenue Procedure 2025-43 and IRS Publication 559.* --- ### What Is the IRS Annual Gift Tax Exclusion? The IRS annual gift tax exclusion allows any U.S. person to give up to **$19,000 per recipient per year in 2026** without filing a gift tax return (IRS Form 709) and without reducing their lifetime exemption. Key rules: - **Per-recipient limit:** The $19,000 limit applies separately to each person you gift. You can give $19,000 each to your three children, your grandchild, and your neighbor — that is $95,000 total with zero gift tax consequences. - **No Form 709 required:** Gifts at or below the annual exclusion do not need to be reported to the IRS. - **Applies to present-interest gifts only:** The recipient must have immediate access to the gift. Future-interest gifts (e.g., certain trusts) do not qualify. - **Indexed for inflation:** The exclusion adjusts in $1,000 increments based on the Consumer Price Index (CPI). The 2026 increase from $18,000 to $19,000 reflects this mechanism. ### Annual Gift Tax Exclusion History (IRS Official Amounts) | Tax Year | Annual Exclusion | Lifetime Exemption | |---|---|---| | 2022 | $16,000 | $12,060,000 | | 2023 | $17,000 | $12,920,000 | | 2024 | $18,000 | $13,610,000 | | 2025 | $18,000 | $13,990,000 | | **2026** | **$19,000** | **$13,990,000** | --- ### IRS Estate and Gift Tax Basic Exclusion Amount for 2026 The **lifetime basic exclusion amount** (also called the estate and gift tax exemption) for 2026 is **$13,990,000 per individual**. This figure is unified — it covers both gifts made during your lifetime and assets transferred at death. **How it works:** - Every dollar of annual exclusion you exceed in a year counts against your lifetime exemption. - Example: If you give your daughter $119,000 in 2026, $19,000 is covered by the annual exclusion. The remaining $100,000 reduces your lifetime exemption from $13,990,000 to $13,890,000. - **No tax is due** until your total lifetime taxable gifts exceed $13,990,000. **Married couples:** The unlimited marital deduction allows tax-free transfers between U.S. citizen spouses regardless of amount. With portability elected on the deceased spouse's estate tax return, a couple can combine their exemptions for up to **$27,980,000** in 2026. --- ### Gift Tax Rates in 2026 For gifts exceeding the lifetime exemption, IRS gift tax rates apply on a progressive scale: | Taxable Gift Amount (above exemption) | Tax Rate | |---|---| | $0 to $10,000 | 18% | | $10,001 to $20,000 | 20% | | $20,001 to $40,000 | 22% | | $40,001 to $60,000 | 24% | | $60,001 to $80,000 | 26% | | $80,001 to $100,000 | 28% | | $100,001 to $150,000 | 30% | | $150,001 to $250,000 | 32% | | $250,001 to $500,000 | 34% | | $500,001 to $750,000 | 37% | | Over $750,000 | **40%** | --- ### Practical Examples for 2026 Gift Tax Planning **Example 1 — Gifting to multiple recipients:** You want to reduce your taxable estate. You give $19,000 each to your 4 children and 6 grandchildren = $190,000 total. Because each gift is at or below the 2026 annual exclusion, you file no Form 709 and use none of your $13,990,000 lifetime exemption. **Example 2 — Gift splitting with a spouse:** You and your spouse can each give $19,000 to the same person — a technique called "gift splitting" — for a combined $38,000 per recipient per year without gift tax consequences. **Example 3 — 529 plan superfunding:** The IRS allows you to front-load up to 5 years of annual exclusions into a 529 college savings plan: $19,000 x 5 = **$95,000 per beneficiary in 2026** (or $190,000 per couple). This election is made on Form 709. --- ### The Sunset Provision: What Happens After 2026? The current high lifetime exemption ($13,990,000) was established by the Tax Cuts and Jobs Act of 2017 (TCJA). The TCJA provisions were extended and the $13,990,000 exemption remains in force for 2026. Estate planning professionals recommend taking advantage of current exemption levels while they are in effect, as future legislative changes remain possible. --- ### When Must You File IRS Form 709? You must file **IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return)** if: - You gave any one person more than $19,000 in 2026 - You gave a future-interest gift of any amount - You made a gift to a non-citizen spouse exceeding $190,000 - You want to elect gift splitting with your spouse Form 709 is due **April 15** of the year following the gift (same deadline as your individual income tax return). Extensions for Form 1040 do not automatically extend Form 709. --- ## Frequently Asked Questions **What is the official IRS gift tax annual exclusion for 2026?** The official IRS annual gift tax exclusion for 2026 is $19,000 per recipient, confirmed in IRS Revenue Procedure 2025-43. **What is the IRS estate and gift tax basic exclusion amount for 2026?** The basic exclusion amount for 2026 is $13,990,000 per individual. For married couples using portability, the combined exclusion is $27,980,000. **Did the 2026 annual gift tax exclusion increase from 2025?** Yes. The exclusion increased from $18,000 in 2025 to $19,000 in 2026, a $1,000 increase due to inflation adjustment. **How much can I gift in 2026 without reporting to the IRS?** You can give up to $19,000 per recipient without filing Form 709. There is no limit on the number of recipients. **What is the 2026 US gift tax lifetime exemption?** The 2026 lifetime estate and gift tax exemption is $13,990,000. Gifts above the $19,000 annual exclusion reduce this lifetime amount. **Can a married couple give $38,000 tax-free in 2026?** Yes. Through gift splitting (elected on Form 709), a married couple can combine their annual exclusions for $38,000 per recipient in 2026. **What is the gift tax rate in the US for 2026?** Gift tax rates range from 18% to 40% for taxable gifts above the lifetime exemption. The top rate of 40% applies to amounts over $750,000 above the exemption. **Are gifts to a non-citizen spouse subject to the annual exclusion limit?** The special annual exclusion for gifts to a non-citizen spouse is $190,000 in 2026 (up from $185,000 in 2025). The unlimited marital deduction does not apply to non-citizen spouses. **Does the annual exclusion apply to 529 college savings plans?** Yes. You can superfund a 529 plan with up to 5 years of exclusions ($95,000 per beneficiary in 2026, or $190,000 per couple) using IRS Form 709. --- *This article reflects official IRS guidance as of April 2026. For personalized estate planning advice, consult a qualified tax attorney or CPA.* [Start your estate plan with MyLastWill](/en/chat/accueil) — our AI guides you through documenting your wishes and preparing for a notary appointment.