Gift Tax Calculator

Understanding gift tax rules helps you transfer wealth efficiently while staying compliant with IRS regulations. This calculator shows whether your gifts trigger a filing requirement and how they affect your lifetime exemption.

Our free Gift Tax Calculator helps you estimate costs based on 5 key financial variables. The calculator provides 4 detailed outputs based on current rates and financial benchmarks.

Enter your details to get estimates based on current financial data as of 2026.

What you'll learn:

• Accurate gift tax calculator estimates based on your specific inputs
• Low, average, and high cost ranges for budgeting
• How local factors impact pricing
• Strategies for maximizing your financial outcome

Understanding the cost breakdown helps you budget effectively for your gift tax calculator project. Here are the typical cost components:

Our gift tax calculator uses a multi-variable formula that accounts for the following inputs:

1. Scenario Complexity — Choose from: Basic / Standard, Typical, Advanced / Complex
2. Gift Amount ($) — Total value of the gift
3. Number of Recipients — Number of people receiving gifts
4. Tax Year — Choose from: 2024, 2025, 2026
5. Previous Lifetime Gifts ($) — Total taxable gifts made in prior years

Based on your inputs, the calculator provides:

• Annual Exclusion Amount — Dollar amount based on current market rates
• Taxable Gift Amount — Dollar amount based on current market rates
• Lifetime Exclusion Used — Dollar amount based on current market rates
• Remaining Lifetime Exclusion — Dollar amount based on current market rates

All calculations incorporate location-specific cost adjustments when a ZIP code is provided, using data from industry databases updated for 2026.

Determines gift tax liability using IRS annual exclusion ($18,000 per recipient in 2026) and lifetime exemption ($13.61 million in 2026). Amounts exceeding the annual exclusion count against the lifetime exemption. Gift tax rates range from 18% to 40% on amounts exceeding the lifetime exemption.

Data Sources:

• IRS Revenue Procedure for current annual gift tax exclusion and lifetime exemption amounts
• IRS Form 709 instructions for gift tax computation methodology
• Tax Foundation analysis of estate and gift tax policy

Key Assumptions:

• Gift valuations are at fair market value on the date of the gift
• The unified credit (lifetime exemption) has not been previously used unless specified
• Gifts to spouses who are US citizens are unlimited (marital deduction) and not taxable

Several factors influence your gift tax calculator estimate:

Scenario Complexity

Ranges from "Basic / Standard" to "Advanced / Complex." Choosing Advanced / Complex can cost 1.5x more than Basic / Standard.

Gift Amount ($)

Total value of the gift

Number of Recipients

Number of people receiving gifts

Tax Year

Ranges from "2024" to "2026." Choosing 2026 can cost 1.0x more than 2024.

Previous Lifetime Gifts ($)

Total taxable gifts made in prior years

Market Conditions

Interest rates, inflation, and economic indicators fluctuate over time and directly affect your results. Federal Reserve policy changes can shift rates within weeks.

Time Horizon

Longer time horizons amplify the effect of compound interest and rate changes. Even small rate differences compound into significant dollar amounts over years.

After you run the calculator, your results include interactive sections that help you make informed decisions:

Financial Breakdown

Your results separate principal from interest (or contributions from earnings) so you can see exactly how your money is working. Understanding this split helps you evaluate whether refinancing, extra payments, or alternative strategies could save you money over time.

Visual Chart

Charts make it easy to grasp the relationship between what you pay and what you owe (or what you save and what you earn). A quick look at the visual split helps you decide whether your current approach is on track or whether adjustments to your payment or contribution strategy could improve your outcome.

Save and Share Your Results

Download your complete results as a CSV spreadsheet or PDF report. The PDF includes all your inputs and key results — ready to share with financial advisors or anyone else who needs to review the numbers. No account or signup required.

Here are proven strategies to reduce your costs:

1. Compare Rates from Multiple Lenders: Shop rates from at least 3 lenders. Even a 0.25% difference in interest rate can save thousands over time.
2. Automate Your Savings: Set up automatic transfers to savings or investment accounts. Consistent contributions compound significantly over time.
3. Maximize Tax-Advantaged Accounts: Contribute to 401(k) up to employer match, then fund IRA/Roth IRA. Tax-advantaged growth accelerates your returns.
4. Reduce High-Interest Debt First: Pay off credit cards and high-APR loans before investing. Eliminating 18-25% APR debt is a guaranteed return.
5. Review Fees and Expense Ratios: High fund fees erode returns. Index funds with 0.03-0.10% expense ratios outperform most actively managed funds over time.
6. Use Balance Transfer Offers Strategically: 0% APR balance transfer offers can save hundreds in interest — but pay off before the promotional period ends.