Gift Tax Calculator 2025 β Annual Exclusion & Lifetime Exemption
Calculate 2025 gift tax. See how much of your $18,000 annual exclusion and $13,610,000 lifetime exemption you use with each gift.
$
$
Taxable gifts already reported on Form 709 $
Paid directly to educational institution $
Paid directly to medical provider $0
Total Gifts This Year
$0
Taxable Gifts (above exclusions)
$0
Lifetime Exemption Remaining
$0
Gift Tax Owed (if any)
Gift Tax Calculation
How to Use This Gift Tax Calculator
Enter the gift amount per recipient and number of recipients. If you and your spouse are splitting gifts, enable gift splitting to double the annual exclusion per recipient. Add any direct tuition or medical payments (which are fully excluded). The calculator shows taxable gifts above exclusions and how they affect your lifetime exemption.
The Formula
Annual Exclusion = $18,000 per recipient (Γ2 if gift splitting = $36,000)
Taxable Gift per Recipient = MAX(0, Gift Amount β Annual Exclusion)
Total Taxable Gifts = Sum of taxable gifts across all recipients
Lifetime Remaining = $13,610,000 β Prior Gifts β This Year's Taxable Gifts
Gift Tax = MAX(0, (Taxable Gifts β Remaining Exemption) Γ 40%)
Taxable Gift per Recipient = MAX(0, Gift Amount β Annual Exclusion)
Total Taxable Gifts = Sum of taxable gifts across all recipients
Lifetime Remaining = $13,610,000 β Prior Gifts β This Year's Taxable Gifts
Gift Tax = MAX(0, (Taxable Gifts β Remaining Exemption) Γ 40%)
Example
Giving $25,000 each to 3 children, single donor, no prior taxable gifts:
Annual exclusion per recipient: $18,000
Taxable per recipient: $25,000 β $18,000 = $7,000
Total taxable gifts: $7,000 Γ 3 = $21,000
Lifetime exemption remaining: $13,610,000 β $21,000 = $13,589,000
Gift tax owed: $0 (still within lifetime exemption)
Must file Form 709 to report the $21,000 in taxable gifts
Annual exclusion per recipient: $18,000
Taxable per recipient: $25,000 β $18,000 = $7,000
Total taxable gifts: $7,000 Γ 3 = $21,000
Lifetime exemption remaining: $13,610,000 β $21,000 = $13,589,000
Gift tax owed: $0 (still within lifetime exemption)
Must file Form 709 to report the $21,000 in taxable gifts
Extended
Gifting Strategy Optimizer
Multi-year gifting plan to maximize tax-free wealth transfer to heirs
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Multi-Year Gifting Plan β Annual Exclusion Optimization
| Year | Annual Exclusion Gifts | Estate Reduction | Cumulative Estate Reduction | Potential Tax Savings |
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Frequently Asked Questions
What is the annual gift tax exclusion for 2025?
The 2025 annual gift tax exclusion is $18,000 per recipient. You can give up to $18,000 to any individual β and to as many people as you like β without filing a gift tax return or using any of your lifetime exemption. Married couples can combine exclusions to give $36,000 per recipient per year through gift splitting.
What is the lifetime gift tax exemption for 2025?
The 2025 lifetime gift tax exemption is $13,610,000, which is unified with the estate tax exemption. Taxable gifts above the annual exclusion reduce this lifetime exemption dollar-for-dollar. Only when gifts exceed the lifetime exemption do you actually owe gift tax (at a 40% rate).
Do I have to pay gift tax if I give more than $18,000?
Not immediately. Gifts above the $18,000 annual exclusion per recipient must be reported on Form 709, but you only pay gift tax if your total lifetime taxable gifts exceed the $13,610,000 lifetime exemption. Most people never pay gift tax β the main consequence is reducing your estate tax exemption at death.
Are there gifts that are completely excluded from gift tax?
Yes. In addition to the $18,000 annual exclusion, the following are not taxable gifts: gifts to a US citizen spouse (unlimited marital exclusion), direct payments to educational institutions for tuition (not room/board), direct payments to medical providers, political organization gifts, and charitable gifts to qualified organizations.
What is gift splitting and how does it work?
Gift splitting allows married couples to treat a gift made by one spouse as if each made half. With gift splitting (elected on Form 709), one spouse can give $36,000 to a single recipient in 2025 without using any lifetime exemption. Both spouses must consent to split gifts for the entire tax year.