Tax planning is not just for the wealthy; it’s essential for everyone who wants to secure their family’s future. When it comes to gift tax and asset tax, it’s crucial to have complete information available.
The IRS has released some important details regarding gift tax and estate tax for 2026. While some aspects remain the same as in previous tax years, others have been changed.
Here, we have discussed everything you need to know about the IRS Annual Gift Limit 2026. Read this article thoroughly to check all the details about it.
IRS Annual Gift Limit 2026
The Internal Revenue Service determines each year how much a person can give as a gift to another person without incurring gift tax, or the maximum amount that can be given as a gift.
The annual gift limit for 2026 is $19,000, meaning this is the amount you can give as a gift without incurring any tax liability.
There is no limit on the number of individuals you can give gifts to up to this maximum limit. You can give gifts to two, five, or even more people without triggering any tax obligations.
Gift rules for married couples
The amount of $19,000 mentioned above applies to individuals; for married couples, this amount is $38,000.
This means that a married couple can easily give $38,000 to another person without triggering any tax liability, and there is no limit on the number of people to whom this can be given.
What are lifetime gift and estate tax exemptions?
The IRS has also disclosed details regarding lifetime gift and estate taxes.
The exemption amount for the tax year 2026 is $15 million for an individual, meaning that an individual can transfer or gift assets worth up to $15 million without incurring any tax liability.
For married couples, the limit is double that of individuals, meaning a husband and wife together can transfer a maximum of $30 million in assets tax-free to another person or give it as a gift.
What happens if you give gifts exceeding the annual limit?
If the amount of your gift exceeds the annual gift limit, you don’t have to pay tax immediately, but it becomes necessary to file a Gift Tax Return (Form 709).
When a gift exceeds the annual gift limit, the excess amount is deducted from the lifetime gift limit.
It means that if you give a gift of $20,000 in 2026, the excess amount of $1,000 will be deducted from your $15 million. You will only have to pay gift tax if the amount you give exceeds the annual limit.
Rules for giving gifts to a non-US citizen spouse
According to IRS rules, if both husband and wife are American citizens, there is no tax on gifts exchanged between them, regardless of the value. However, if either the husband or the wife is not a U.S. citizen, the rules are different.
In tax year 2026, an individual can give their spouse, who is not a U.S. citizen, a gift of up to $194,000 tax-free. Any amount above this will be subject to gift tax.
Important Notes
We have discussed important points regarding the IRS annual gift limit for 2026 below. Please read them; this information might be helpful to you.
- Under the new law, the $15 million gift and estate tax exemption is made permanent, meaning it has no expiration date and will increase annually with inflation.
- In the US, there are 12 states and Washington, D.C., that also levy a state-level estate tax, so it is very important for you to keep these things in mind when planning for gift tax.
- Gift tax planning is essential because it saves on taxes, provides financial security to the family, and helps in the proper distribution of assets.
Disclaimer: The IRS annual gift tax limit for 2026 information is for general awareness only. Official limits are set by the IRS.
