Originally posted on September 18, 2025 @ 7:23 AM
IRS 2026 Gift Tax Limits: If you like giving generous gifts, or you’re thinking ahead about estate planning, the IRS 2026 gift tax rules are worth paying attention to. They decide how much money (or property) you can pass along without triggering extra taxes. The good news? Starting in 2026, the rules are becoming a little more generous—and a lot less stressful.
IRS 2026 Gift Tax Limits: Two Rules You Should Know
When people talk about the “gift limit,” they’re usually talking about two different things:
The annual gift exclusion – how much you can give to one person in a year without reporting it.
The lifetime exemption – the total amount you can give away over your entire life (and at death) before estate or gift taxes apply.
IRS 2026 Gift Tax Limits Update
For years, everyone expected a big drop in the lifetime exemption once 2025 ended. That’s because the higher limit created by the 2017 tax law was set to expire, cutting the amount you could pass on almost in half. But in 2025, Congress passed the One Big Beautiful Bill Act (OBBBA), which changed the story. Instead of shrinking, the exemption will be locked in at $15 million per person starting January 1, 2026—and it will continue to rise a little each year with inflation.
The annual exclusion is separate. In 2025, it’s set at $19,000 per recipient, and it’s expected to climb slightly in 2026.
IRS 2026 Gift Tax Limits: Quick Look at the Numbers
Type of Limit 2025 2026
Lifetime Gift & Estate Exemption $13.99 million $15 million (inflation-adjusted)
Annual Gift Exclusion $19,000 per recipient Slightly higher (adjusted for inflation)
IRS 2026 Gift Tax Limits: What This Means for You
Everyday gifts stay simple: You can give up to the annual limit to as many people as you want—no tax, no paperwork.
Big gifts need a form: If you go over the annual limit, you’ll need to file IRS Form 709, but you still won’t pay taxes until your lifetime gifts pass the exemption.
Couples get double: Married couples can combine their limits, which means in 2026 they can transfer up to $30 million tax-free.
No last-minute rush: The $15 million exemption is permanent under the new law, so there’s no “use it or lose it” panic going into 2026.
IRS 2026 Gift Tax Limits: Planning Tips
Don’t forget state taxes: Some states set their own estate tax limits, often much lower than the federal ones.
Think ahead with assets: Gifting property, stock, or business shares earlier can reduce future tax burdens since any growth after the gift is no longer part of your estate.
Get help with large gifts: For anything beyond simple cash transfers, a tax advisor or estate planner can make sure everything is handled smoothly.
IRS 2026 Gift Tax Limits: Conclusion
Starting in 2026, you’ll be able to give away $15 million over your lifetime without paying federal gift or estate taxes, plus around $19,000 (or a bit more) per person each year tax-free.
It’s a win for families and individuals who want to share wealth without running into surprise tax bills. And with a little planning, you can take full advantage of these rules to make sure more of your money ends up with the people and causes you care about.
IRS 2026 Gift Tax Limits: FAQs
1. What is the annual gift tax exclusion for 2026?
In 2025, the annual exclusion is $19,000 per recipient. For 2026, it’s expected to increase slightly with inflation. This means you can give that amount to as many people as you want each year without reporting it to the IRS.
2. What is the lifetime gift and estate tax exemption in 2026?
Starting January 1, 2026, the lifetime exemption will be $15 million per person, adjusted annually for inflation. Married couples can combine their exemptions, allowing them to transfer up to $30 million tax-free.
3. Do I have to pay taxes if I give more than the annual limit?
Not right away. If you give more than the annual limit, you’ll need to file IRS Form 709, but the excess amount just reduces your lifetime exemption. You only owe federal gift taxes if your total lifetime gifts go beyond the $15 million exemption.
4. Does this new law affect state estate or gift taxes?
No. Some states have their own estate or inheritance taxes with much lower exemptions. Even if you’re covered by the federal exemption, you may still owe state-level taxes depending on where you live.
5. Why should I start gifting sooner rather than later?
Gifting assets early—like stocks, real estate, or business shares—removes future growth from your estate, which can save your heirs significant taxes. Plus, giving during your lifetime lets you see your loved ones enjoy the benefits.
