Gift tax calculator: Exclusions and taxes owed
Our gift tax calculator estimates how much of your annual and lifetime exclusions will be used up by your gift, and whether you'll have to pay any taxes on it.
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The federal gift tax is a confusing part of the tax code. It's paid by the giver, not the recipient, and is subject to a complex system of limits and exclusions. Most people — including fairly generous givers — will never have to pay it, even if they have to file gift tax returns sometimes.
Our gift tax calculator can help you determine if you'll need to file a gift tax return in 2026, whether you'll owe any money, and what to do next.
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This calculator only provides estimates and may not accurately reflect all the nuances of your tax situation. It is intended for informational purposes only.
How to use this calculator
Enter the amount you're giving. This calculator is designed for gifts to individual recipients. If you are giving gifts to multiple people, do not enter the total amount — just the amount for a specific recipient.
If you have filed gift tax returns in previous years, enter the total amount you've reported in all previous years. You may need to check your old tax returns to add this number up. If you haven't filed a gift tax return before, you can leave this field blank.
Select your marital status. This determines whether you are eligible to double your annual and lifetime exclusion amounts through "gift splitting" with your spouse.
Click "Calculate." This will display your remaining annual and lifetime gift tax exclusions, whether you actually owe any gift tax, and whether you'll need to file a gift tax return. If the answer to either of the last two questions is "yes," you may want to consult a financial advisor.
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How NerdWallet's gift tax calculator works
This calculator determines whether your gift exceeds your annual exclusion and subtracts the excess (plus any amounts previously reported on a gift tax return) from your lifetime exclusion.
If your lifetime and annual exclusions are both exhausted, it applies a flat 40% rate to the taxable portion of your gift. (The gift tax is graduated, but its bracket system applies to your total lifetime gift amount, so taxable portions above the lifetime exclusion will always be taxed at 40%.)
Exclusion amounts are current for tax year 2025 and are doubled for married couples (this calculator assumes that married couples will split their gifts).
Things to keep in mind about the gift tax
Gift tax is paid by the giver, not the recipient. This calculator is intended for gift-givers. If you've received a gift, even a large one, you don't need to report it as income. However, if the gift earns you any income after you receive it, you're on the hook for that later income. For example, if you are gifted stock, and then you sell it for more than its value at the time of the gift, you'll likely owe capital gains tax on the profits.
The gift tax doesn't only apply to cash; it can also apply to property, such as stocks. For gift tax purposes, the value of a property gift is based on its market value at the time of the gift. Check out our article on gifting stock to learn more.
There are a few exceptions to the gift tax, such as gifts to charity or 529 plans. Gifts to a 501(c)(3) nonprofit organization are generally not considered gifts; they are tax-deductible donations. Also, gifts to someone else's 529 college savings plan aren't always subject to the annual exclusion limit. You can give up to five times the annual exclusion to a recipient's 529 plan in a single year without using up any of your lifetime exclusion by reporting the gift in equal amounts over five years.
Connecticut has a state gift tax. The Constitution State is the only one that has its own gift tax on top of the federal gift tax. Connecticut's gift tax is a flat 12% rate. But like the federal gift tax, it only applies to gifts from taxpayers who have exhausted their lifetime federal gift tax exclusion ($13.99 million in 2025).
What to do if you'll need to file a gift tax return
If you give a gift that is larger than the annual exclusion ($19,000 per recipient in 2025), you'll have to file IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. You'll need to do this even if you're married and gift splitting with your spouse; both spouses have to file a gift tax return and consent to gift splitting to take advantage of the doubled annual exemption of $38,000 per year.
If you're giving enough to need to file a gift tax return, linking up with a financial advisor is probably a good idea — especially if you're giving enough to owe gift tax.
» MORE: Best financial advisors