Gift Tax Calculator: Tax on a Reportable Gift
Work out the federal gift tax owed on a reportable gift above the lifetime exemption — the figure that almost never bites in practice but can be substantial when it does.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Gift tax | Net gift after tax |
|---|---|---|
| 40% of $2M | 800,000 | 1,200,000 |
| 40% of $10M | 4,000,000 | 6,000,000 |
| 32% of $1.5M (lower bracket) | 480,000 | 1,020,000 |
| 40% of $500k | 200,000 | 300,000 |
How This Calculator Works
Enter the taxable gift amount (above the annual exclusion and exhausting the lifetime exemption) and the applicable rate. The calculator multiplies the two to give the gift tax and shows the net amount after tax.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
A $2,000,000 taxable gift at the 40% top federal rate owes $800,000 in gift tax. In practice this is rare — most US donors use the lifetime exemption (over $13M per individual in 2024) before any cash gift tax is due. Real-world payment usually comes only on very large estates or aggressive lifetime gifting strategies.
Key Insight
Federal gift tax is largely a planning structure rather than an actual tax most people pay. The annual exclusion ($18,000 per recipient in 2024) lets many gifts pass tax-free outright; gifts above that draw down the lifetime exemption (over $13M per individual). Only after the lifetime exemption is exhausted does cash gift tax actually become due.
Frequently Asked Questions
Who pays the gift tax?
The donor, not the recipient. The recipient receives the gift free of federal income tax; the donor owes the gift tax if any is due.
What is the annual exclusion?
Around $18,000 per recipient in 2024, indexed for inflation. Gifts at or below this level per recipient per year are not reportable and do not affect the lifetime exemption.
What is the lifetime exemption?
Over $13M per individual in 2024 (subject to scheduled changes after 2025). Cumulative gifts above the annual exclusion draw down this exemption — only gifts beyond the lifetime exemption owe actual cash gift tax.
Are gifts between spouses taxable?
Gifts to a US citizen spouse are unlimited and tax-free under the marital deduction. Gifts to a non-citizen spouse have a higher annual exclusion but are not unlimited.
What about state gift tax?
Most states do not have a separate gift tax. Connecticut historically had one; check your specific state's current rules.
Related Calculators
Methodology & Review
Gift tax is the reportable gift amount multiplied by the applicable rate. 'Reportable' means above the annual exclusion (around $18,000 per recipient in 2024) and counted against the lifetime exemption. Most US gifts use the lifetime exemption first — actual tax is owed only after that exemption is exhausted. The calculator models a single flat rate.
Written by Ugo Candido · Last updated May 17, 2026.