Gift Tax Calculator

US Gift Tax Calculator

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Value of Gifts Given In 2023: $

Value of Gifts Given Before 2023: $

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Annual Gift Tax Exclusion

You can use the gift tax exclusion to give away a set amount every year, $17,000 in 2023, to as many people as you wish without being required to pay a gift tax. However, if you gift an amount of money or assets that exceed this threshold, you will be required to pay tax. Gifts can take multiple forms, including investments, real estate, cash, or jewelry. Every now and again, the gift tax exclusion is altered according to inflation.

Some things are not treated as gifts by the IRS. As such, you can make unlimited gifts in these areas without needing to pay gift tax or file the associated paperwork.

Gifts to charities that have been approved by the IRS.
Gifts to your husband or wife, providing he or she is a US citizen.
Gifts to political organizations.
Gifts that are made to cover someone else's medical expenses provided that the payment is made directly to the provider.
Gifts that are made to cover someone else's educational fees provided that the payment is made directly to the provider.

Gift Tax Exemptions and Exclusions & Tax Rates
Year	Lifetime Exemption	Annual Exclusion	Tax Rate
2023	$12.92 million	$17,000	40%
2022	$12.06 million	$16,000	40%
2021	$11.7 million	$15,000	40%
2020	$11.58 million	$15,000	40%
2019	$11.4 million	$15,000	40%
2018	$11.18 million	$15,000	40%
2017	$5.49 million	$14,000	40%
2016	$5.45 million	$14,000	40%
2015	$5.43 million	$14,000	40%

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Understanding Gift Tax

Per the definition set out by the IRS, a gift is a sum of money or a property that you gift to another individual without any expectation of receiving something in return. The person who gives the gift is required to pay tax on the value of this gift.Taxpayers benefit from exemptions from gift tax. The IRS grants American citizens both a lifetime and an annual exclusion. The level of this exclusion entails that you will need to give away a significant amount of assets before it comes into use.
Gifts are only subjected to tax at the point at which they exceed the lifetime exemption that is, the value of gifts you are permitted to give away during your lifetime. As of 2023, the lifetime exclusion level is $12.92 million.