IRS Keeps 2026 Annual Gift Exclusion at $19,000

The IRS has confirmed that the federal Annual Gift Exclusion for 2026 remains at $19,000 per recipient, the same amount as in 2025. This exclusion allows donors to transfer qualifying gifts up to that amount without using any portion of their lifetime gift and estate tax exemption. The limit is applied separately to each recipient, so a donor can give $19,000 to multiple people in the same year without reducing the total amount available for the exclusion. A married couple can each give $19,000 to a recipient, totaling $38,000, without needing to file for gift splitting. If a couple elects to split gifts, both spouses must file Form 709 and agree to split all gifts made by either spouse during the calendar year. Gifts that exceed the annual exclusion do not automatically trigger a tax bill; instead, the excess amount is applied against the donor’s lifetime exemption, which for 2026 is $15 million. Donors must file Form 709 by April 15 of the year following the gift if they give more than the annual exclusion to at least one person other than a spouse, unless the transfer is a qualifying medical or tuition payment or falls within specified exempt categories. The filing requirement also applies to gifts to a non‑U.S. citizen spouse above $190,000, with a 2026 exclusion of $194,000 for such spouses. The exclusion applies to cash, property, or other assets, and the recipient generally receives the donor’s income‑tax basis in the gifted property. Gifts that exceed the exclusion do not create a capital gain for the donor at the time of the transfer. The calendar‑year window for qualifying gifts closes on December 31; gifts not completed within the year cannot be carried forward.