What is Gift tax annual exclusion?
In short
The gift tax annual exclusion lets a donor give up to a set amount per recipient each year without using any lifetime exemption or filing a gift tax return: $19,000 per donee for 2026.
Key takeaways
- It applies only to gifts of a present interest.
- Married couples can elect gift splitting to double it per recipient.
- Tuition and medical expenses paid directly to the provider are excluded without limit.
Where it's tested
REG: Trusts, Estates & Gift Tax Basics — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under the One Big Beautiful Bill Act, what is the lifetime estate and gift tax exemption per individual beginning in 2026, and is it scheduled to sunset?