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You can give up to the annual exclusion limit (e.g. $18,000 in 2024) to an unlimited number of individuals each year without reporting or tax consequences.
Reportable Gift per Recipient = Gift Amount - Annual Exclusion LimitGifts that exceed the annual exclusion limit must be reported on Form 709 and are deducted from your lifetime unified exemption.
Remaining Lifetime Exemption = Prior Lifetime Exemption - Combined Excess Annual GiftsGift tax is only owed when your lifetime unified exemption is fully exhausted. The rate matches federal progressive estate tax brackets.
Gift Tax Due = Excess Lifetime Gifts (after exemption is $0) × Progressive Rate (18% - 40%)Updated: July 2026
A parent giving $50,000 to their child as a down payment on a home, under 2024 limits.
→ Reportable gift: $32,000; Form 709 required; Actual tax owed: $0 (exhausts exemption)
A married couple splitting a gift to a single relative to double their tax-free threshold to $36,000.
→ Under the $36,000 combined annual limit; No reporting or Form 709 required
A wealthy individual who has already used their entire lifetime unified exemption, making a new $100,000 gift.
→ Taxable gift: $82,000; Federal gift tax liability: ~$32,800 (flat 40% peak bracket)
The US gift tax works hand-in-hand with the estate tax to prevent people from giving away their wealth to avoid taxes. This calculator tracks your gifts, determines if they exceed the annual exclusion limit per recipient, and tracks the reduction of your lifetime unified exemption.