Gift Tax Annual Exclusion Calculator
Track how much of a gift falls under the annual gift-tax exclusion, and how much reportable gift eats into your lifetime exemption.
How it works
Exclusion-free = min(gift, annual exclusion × [2 if split]) · Reportable = max(0, gift − effective exclusion)
You can give any single person up to the annual exclusion ($18,000 in 2024) each year with no gift-tax return and no effect on your lifetime exemption. Give more and only the excess is "reportable" — it does not usually mean you owe tax, it simply chips away at your large lifetime exemption ($13.61M in 2024). Married couples can elect gift-splitting to treat a gift as coming half from each spouse, effectively doubling the annual exclusion per recipient.
Worked example
A $25,000 gift to one person with an $18,000 exclusion leaves $7,000 reportable — you file Form 709 and $7,000 comes off your lifetime exemption, but no tax is due. Elect gift-splitting and the $36,000 combined exclusion covers the whole gift.
Frequently asked questions
Does a reportable gift mean I owe tax?
Usually not. Amounts above the annual exclusion are reported on Form 709 and reduce your multi-million-dollar lifetime exemption. Actual gift tax is owed only once that lifetime exemption is fully used up.
Is the annual exclusion per person or total?
Per recipient, per year. You can give $18,000 to each of ten different people in the same year — $180,000 total — without touching your lifetime exemption.
What is gift-splitting?
Married couples can agree to treat a gift made by one spouse as if each gave half, doubling the annual exclusion per recipient. It requires both spouses to consent on a gift-tax return.
Related calculators
Educational estimate only, using simplified federal rules — it ignores state tax, credits, phase-outs and your full situation. Not tax, legal or financial advice; confirm with a professional.