United States · Federal gift tax
Gift tax annual exclusion 2027.
How much you can give each person in 2027 before a gift tax return is due, and what happens above it.
Short answer: For gifts made in 2027 the annual exclusion is $20,000 per recipient, up from $19,000 in 2026. Gifts to a spouse who is not a U.S. citizen get a higher $201,000 exclusion. A gift over the exclusion needs a Form 709 but usually no tax.
Check a 2027 gift
Result
Enter the gift amount and press Estimate.
The 2027 annual exclusion
Section 3.46 of Rev. Proc. 2026-35 sets the first $20,000 of gifts to any person (other than gifts of future interests) as outside the taxable gifts you count for 2027, and the first $201,000 of gifts to a spouse who is not a U.S. citizen. The tax on covered gifts from a covered expatriate also applies only above $20,000 received in 2027.
| Item | 2027 | 2026 |
|---|---|---|
| Annual exclusion per recipient | $20,000 | $19,000 |
| Gift to a non-citizen spouse | $201,000 | $194,000 |
| With gift splitting, per recipient | $40,000 | $38,000 |
| Lifetime exclusion (basic exclusion amount) | $15,480,000 | $15,000,000 |
What happens above the exclusion
A gift over the exclusion is not taxed when you give it. You report it on Form 709, and the amount over the exclusion counts against your lifetime basic exclusion of $15,480,000, so cash tax is due only after that is used up. A gift of a future interest in property is not eligible for the annual exclusion at all, which is why such gifts need a Form 709 even when small.
What changed from 2026
The per-person exclusion rose from $19,000 to $20,000, a $1,000 increase. The exclusion for a non-citizen spouse rose from $194,000 to $201,000. Gifts made in January 2027 use the 2027 amount, since the exclusion is set by calendar year.
Worked example (2027)
You give one niece $35,000 in 2027. The exclusion is $20,000, so $15,000 is over it. A Form 709 is due for that gift, no gift tax is paid, and the $15,000 reduces your $15,480,000 lifetime exclusion. If you and your spouse elect gift splitting, the same gift is treated as $17,500 from each of you, which is under the $20,000 limit for each, so no amount is over the exclusion, but each spouse still files a Form 709 to make the election.
Common mix-ups
- The annual exclusion is per recipient, not per year in total. You can give $20,000 to as many different people as you like, and each gift is judged separately.
- Giving over the limit does not mean paying tax. It means filing Form 709. Tax is due only after the lifetime exclusion is used up.
- Spouses cannot file one joint gift tax return. Each person who gives files their own Form 709, even when gift splitting is elected.
- Gifts to a U.S. citizen spouse are not covered by the $20,000 figure. Gifts to a spouse who is a U.S. citizen are generally not taxable gifts at all. The higher amount is for a spouse who is not a citizen.
Method
The checker takes the exclusion for the situation ($20,000 per recipient, $40,000 with gift splitting, $201,000 for a non-citizen spouse), subtracts it from the gift to each recipient and multiplies the excess by the number of recipients. It flags that a Form 709 is needed whenever there is an excess or gift splitting is elected. Gift splitting does not combine with the non-citizen spouse amount here. Gift-splitting rules follow the IRS Form 709 instructions.
What this does not cover
- Gifts of future interests, which never qualify for the annual exclusion.
- Tuition and medical payments made directly to the school or provider, which are outside gift tax.
- Whether gift splitting is available in your case, which depends on the other spouse being a U.S. citizen or resident.
- State gift or inheritance rules and the generation-skipping transfer tax.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- IRS Rev. Proc. 2026-35 (tax year 2027 inflation adjustments), section 3.46 and section 3.44 (retrieved November 9, 2026)
- IRS news release IR-2026-133, November 5, 2026 (retrieved November 9, 2026)
- IRS Rev. Proc. 2025-32 (tax year 2026 figures used for the comparison column) (retrieved November 9, 2026)
- IRS: Instructions for Form 709 (retrieved November 9, 2026)
Frequently asked questions
What is the gift tax annual exclusion for 2027?
$20,000 per recipient, up $1,000 from $19,000 in 2026.
What is the 2027 limit for gifts to a spouse who is not a U.S. citizen?
$201,000, up from $194,000 in 2026.
Do I owe tax if I give more than $20,000 in 2027?
Usually not. You file Form 709 and the excess reduces your $15,480,000 lifetime exclusion. Tax is due only after that is used up.
How much can a married couple give one person in 2027?
$40,000 with gift splitting, which is $20,000 from each spouse. Each spouse files a Form 709 to elect splitting.
How much of a $35,000 gift is over the exclusion?
$15,000, because $35,000 minus $20,000 is $15,000.
Does the annual exclusion reset every year?
Yes. It applies to each calendar year separately, so gifts in 2027 use the 2027 amount.
Where does the 2027 number come from?
IRS Revenue Procedure 2026-35, section 3.46, announced in IR-2026-133 on November 5, 2026.
Not legal or tax advice
These are the IRS figures for tax year 2027 in an unofficial guide that no tax agency runs. A result here is an estimate from the numbers on this page, not a return. Nothing you type is transmitted anywhere. Confirm with IRS forms and instructions or a tax professional before you file.