Rania Combs, Texas and North Carolina estate planning attorney. Last reviewed October 2026.
In 2026 you can give up to $19,000 to each person without filing a gift tax return or using any of your lifetime exemption. Married couples who “split” gifts can give $38,000 per recipient. If you give more, you generally still do not pay gift tax: the excess counts against your $15,000,000 lifetime gift and estate tax exemption, and you report it on a federal gift tax return.
Under federal tax law, the person making the gift (the donor) is responsible for any gift tax due, not the recipient. The IRS says the donor is generally responsible for paying the gift tax, and a recipient generally does not report a gift as income.
Gift Tax Limits at a Glance (2026)
| Limit | 2026 amount | What it means |
|---|---|---|
| Annual exclusion per recipient | $19,000 | Give this much to any number of people each year with no return and no use of your exemption. |
| Married couple, gift splitting | $38,000 per recipient | Each spouse uses an annual exclusion. Splitting a gift requires both spouses to consent and file Form 709. |
| Gifts to a spouse who is not a U.S. citizen | $194,000 | The annual limit replaces the unlimited marital deduction for these gifts. |
| Lifetime gift and estate tax exemption | $15,000,000 per person | Taxable gifts above the annual exclusion reduce this amount, which is shared with your estate tax exemption at death. |
Figures are from the IRS: Rev. Proc. 2025-32 and the Form 709 instructions. The 2025 law signed on July 4, 2025 (Public Law 119-21, often called the One Big Beautiful Bill Act) raised the basic exclusion amount to $15,000,000 for 2026, up from $13,990,000 in 2025. For what the new law means for estate planning, including portability and the future of the exemption, see Estate and Gift Tax in 2026.
Gift Tax Limit by Year
If you are looking for an earlier year, the annual exclusion and lifetime exemption were:
| Year | Annual exclusion per recipient | Lifetime exemption (basic exclusion amount) |
|---|---|---|
| 2024 | $18,000 | $13,610,000 |
| 2025 | $19,000 | $13,990,000 |
| 2026 | $19,000 | $15,000,000 |
Sources: IRS Rev. Proc. 2023-34 (2024), the Form 709 instructions (2025), and Rev. Proc. 2025-32 (2026). Use the figure for the year in which you make the gift.
What Happens If You Give More Than $19,000?
Making a gift larger than $19,000 to one person does not automatically mean you owe gift tax. The excess is a taxable gift that reduces your lifetime exemption, and you generally report it on Form 709. You pay gift tax only after your lifetime taxable gifts exceed the exemption, which is $15,000,000 in 2026.
Example
- You give your child $25,000 in 2026.
- That is $6,000 over the $19,000 annual exclusion.
- You file Form 709 for 2026 and report the gift. No tax is due.
- Your remaining lifetime exemption is reduced by $6,000.
Two spouses who give a child $25,000 from joint funds and elect gift splitting would each be treated as giving $12,500, which is under the $19,000 limit for each of them. They still need to file Form 709 to elect splitting. Gifts to a married child raise their own questions in Texas: see Will a Gift I Make to My Married Child Be Community Property?
Gifts That Do Not Count Toward the Limit
Some transfers are not taxable gifts at all, and you do not report them. Under IRS rules these include:
- Tuition or medical expenses you pay directly to the school or medical provider for someone else, in any amount. Paying the student or patient instead does not qualify.
- Gifts to your spouse, if your spouse is a U.S. citizen (there is no limit).
- Gifts to a political organization for its use.
- Gifts to qualifying charities, which are deductible from the value of gifts made.
See the IRS list of frequently asked questions on gift taxes.
When Do You Have to File a Gift Tax Return?
If you are a U.S. citizen or resident and you gave anyone more than $19,000 in 2026 (other than your spouse), you generally must file Form 709, even if no tax is due. You also file if you and your spouse split gifts, or if you gave a gift of a future interest such as property that the recipient cannot use until later. Form 709 is due April 15 of the year after the gift (or the next business day if that date falls on a weekend or holiday). Details are in the IRS instructions for Form 709.
Gifting Property Other Than Cash
The annual exclusion applies to the fair market value of the gift, so it works for stock, real estate, or other property as well as cash. Gifting property can have income tax consequences for the person who receives it. In general, the recipient takes your tax basis in the property, so a later sale may produce capital gain that would not arise if the property passed at your death. This is one reason to talk with a lawyer and tax advisor before gifting appreciated assets.
If you hold a power of attorney, or are planning for a time when you may not be able to give for yourself, check that the document says whether your agent may make gifts. Read Why Gifting Powers Matter in a Durable Power of Attorney.
Frequently Asked Questions About the Gift Tax
Does the person who receives a gift pay tax on it?
No. The donor is responsible for any federal gift tax, and the recipient generally does not owe income tax on a gift. The IRS notes that a donee may agree to pay the tax in special arrangements, but that is unusual.
Can I give my child $100,000 without paying gift tax?
Yes, in most cases. The first $19,000 is covered by the annual exclusion. The other $81,000 is a taxable gift reported on Form 709 and applied against your $15,000,000 lifetime exemption, so no tax is due unless your lifetime taxable gifts exceed that amount.
Is there a limit on how much I can give my spouse?
There is no limit on gifts to a spouse who is a U.S. citizen. For a spouse who is not a citizen, the annual limit is $194,000 in 2026.
Does Texas have its own gift or inheritance tax?
Texas does not have an inheritance tax or a separate state estate tax. See Does Texas Have an Inheritance Tax? The federal rules above apply to Texas and North Carolina residents alike.
Does the lifetime exemption drop if I use it for gifts?
Yes. Taxable gifts you make during life reduce the exemption available when you die. Most families will never owe federal gift or estate tax at the 2026 amounts, but gifts also affect other issues, such as who controls assets and how they would be treated in a calculation of the value of your estate.
Talk With an Estate Planning Attorney About Gifting
A gift can be part of a plan to help your family, reduce a future estate tax, or qualify for benefits, but the wrong gift can create tax, control, and creditor problems. If you have questions about how gift and estate tax laws apply to your situation, schedule a free introductory conference with an experienced estate planning attorney.
