Gift Tax Exclusion 2027: Official $19,000 Limit for 2026 and What to Expect Next

The annual gift tax exclusion is the amount you can give any one person in a year without filing a gift tax return. It matters for holiday gifts, help with a down payment, college savings and estate planning. Many families plan December and January gifts around it, so the 2027 figure gets a lot of attention in the autumn.

Status as of October 16, 2026: the IRS has not yet released the 2027 annual exclusion. It will appear in the tax year 2027 inflation revenue procedure, which normally comes out in October or November. The 2026 exclusion is official at $19,000 per recipient, according to Rev. Proc. 2025-32 and IRS news release IR-2025-103.

Official gift and estate figures

Item	2025	2026 (official)	2027
Annual exclusion per recipient	$19,000	$19,000	Pending
Married couple, gift splitting, per recipient	$38,000	$38,000	Pending
Annual exclusion for gifts to a non-citizen spouse	$190,000	$194,000	Pending
Basic exclusion (lifetime gifts + estate), per person	$13,990,000	$15,000,000	Pending

The $15 million basic exclusion for 2026 comes from the 2025 tax law (Public Law 119-21, signed July 4, 2025), which amended section 2010(c)(3) of the tax code. The IRS has not yet published the 2027 basic exclusion amount. For 2025 gifts, the Form 709 instructions put the top rate for gifts and generation-skipping transfers at 40%.

Why the annual exclusion often stays the same

The annual exclusion is adjusted for inflation, but the IRS table of past amounts shows that it moves only in $1,000 steps and sometimes stays flat for years:

Year	Annual exclusion
2011 to 2012	$13,000
2013 to 2017	$14,000
2018 to 2021	$15,000
2022	$16,000
2023	$17,000
2024	$18,000
2025	$19,000
2026	$19,000
2027	Not yet announced

Based on that pattern, the 2027 figure will either stay at $19,000 or rise by $1,000, but only the IRS release will settle it. Do not plan a 2027 gift above $19,000 per person on the assumption of an increase until the figure is official. For a married couple splitting gifts, the IRS table shows the combined per-recipient amount at $38,000 for both 2025 and 2026.

What the IRS counts as a gift

The IRS defines a gift as any transfer to an individual, made directly or indirectly, where you do not receive full value in money or money's worth in return. Its general rule is that any gift is a taxable gift, with several exceptions listed below. Selling something to a family member far below its value can therefore count as a gift, because you do not receive full value in return. Forgiving a loan or lending money interest-free can also bring the gift tax into play, as the Form 709 instructions explain.

Giving does not affect your own income tax in the usual case. The IRS says you cannot deduct the value of gifts you make, other than gifts that qualify as deductible charitable contributions.

How the gift tax actually works

The system has two layers:

1. Annual exclusion. Gifts up to the annual amount per recipient are not taxable gifts. You can give $19,000 in 2026 to each of any number of people. The Form 709 instructions note one exception: gifts of a future interest do not qualify for the annual exclusion, so they must be reported even if they are under $19,000.
2. Lifetime basic exclusion. If a gift to one person goes over the annual amount, you file Form 709. The excess is subtracted from your lifetime exclusion of $15 million for 2026. Tax is due only after that lifetime amount is used up.

Example: in 2026 a parent gives a child $50,000 toward a house. The first $19,000 is covered by the annual exclusion. The remaining $31,000 is reported on Form 709, due April 15, 2027, and reduces the parent's remaining lifetime exclusion. No tax is paid. If the parent is married and the couple elects gift splitting, $38,000 is excluded and only $12,000 is reported.

Gifts that don't count against any limit

• Tuition you pay for someone (the educational exclusion)
• Medical expenses you pay for someone (the medical exclusion)
• Gifts to your spouse (for a non-citizen spouse, the separate annual exclusion of $194,000 for 2026 applies)
• Gifts to qualifying charities, which also may be deductible on your income tax return.
• Gifts to political organizations for their use.

529 plans: five-year election

The Form 709 instructions allow a special election for contributions to a qualified tuition (529) plan. If you contribute more than the annual exclusion for one beneficiary, you can elect to treat up to five times the exclusion as if it were made evenly over five years. With the $19,000 exclusion that is up to $95,000 per beneficiary. You must report the election on Form 709, and you can make it for as many beneficiaries as you fund.

Timing tips for year-end gifts

• Use 2026 before December 31. Annual exclusions do not carry over. A gift made on January 2, 2027 counts against 2027's limit.
• Gifts of property carry over the giver's basis. The IRS gift tax FAQ gives an example: if the donor paid $10 a share and you later sell at $100, you pay income tax on a $90 gain per share. See the capital gains thresholds in our tax brackets guide.
• Gifts to grandchildren and other "skip persons" can also be subject to the generation-skipping transfer (GST) tax, which is reported on the same Form 709.

Do states tax gifts?

Some states have their own estate, inheritance or gift tax rules, which can differ a lot from the federal ones. Check your state revenue department or an estate planning attorney before making large transfers.

Related guides

Gifts often come up together with other year-end money decisions. These include retirement contributions (401(k) and IRA limits), health savings (HSA limits 2027) and, for retired parents, the Social Security COLA for 2027.

Filing Form 709: the basics

• Who files: the giver. Each spouse files separately, and you must file to split gifts with your spouse or to make the five-year 529 election, whatever the amounts.
• When: no earlier than January 1 and no later than April 15 of the year after the gift. For 2026 gifts that is April 15, 2027. An extension for your income tax return (Form 4868) also extends the time to file Form 709.
• No joint return: spouses may not file a joint gift tax return.
• Valuation: gifts are reported at fair market value, the price at which the property would change hands between a willing buyer and a willing seller. The IRS asks for copies of appraisals, and the Form 709 instructions explain the adequate disclosure rules.

Gift or loan? Helping family with large sums

Parents who want to help with a home purchase sometimes lend the money instead of giving it. The Form 709 instructions point out that gift tax may also apply to forgiving a debt and to making an interest-free or below-market interest rate loan. If you lend rather than give, document the loan and get advice on the interest rate, so that it is not treated as a gift.

Bottom line

For 2026 you can give $19,000 per person, or $38,000 as a married couple splitting gifts, without using any of your lifetime exclusion. The basic exclusion is $15 million per person. The 2027 annual exclusion is still pending; judging by the IRS history table it will either stay at $19,000 or rise by $1,000. We will update this page when the IRS publishes the official number.