By Harry Prabandham · Updated September 28, 2026
Tax Planning
Annual Gift Tax Exclusion in 2026: Gift Splitting, 529s, and Trusts
In 2026 you can give $19,000 per recipient without using exemption or filing a gift tax return. The lifetime exemption is $15 million.
Annual Gift Tax Exclusion in 2026: Gift Splitting, 529s, and Trusts
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How much can you give in 2026 without gift tax?
- The 2026 annual exclusion is $19,000 per recipient, with no limit on the number of recipients.
- Larger gifts require Form 709 and use lifetime exemption, $15 million per person in 2026; tax is owed only after it runs out.
- Tuition paid directly to a school and medical bills paid directly to a provider are excluded without limit.
- Gifts to a U.S. citizen spouse are unlimited, and the 2026 exclusion for a non-citizen spouse is $194,000.
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Full Guide
How much can you give in 2026 without gift tax?
- The 2026 annual exclusion is $19,000 per recipient, with no limit on the number of recipients.
- Larger gifts require Form 709 and use lifetime exemption, $15 million per person in 2026; tax is owed only after it runs out.
- Tuition paid directly to a school and medical bills paid directly to a provider are excluded without limit.
- Gifts to a U.S. citizen spouse are unlimited, and the 2026 exclusion for a non-citizen spouse is $194,000.
How does gift splitting work?
- Married couples can elect to treat gifts as made half by each spouse, allowing $38,000 per recipient in 2026.
- Both spouses must consent, and Form 709 is required even if no tax is due.
- The election applies to all gifts either spouse makes to third parties during the year.
- Gifts of community property are already treated as made half by each spouse.
How does 529 superfunding use the exclusion?
- A donor can front-load five years of exclusions into a 529: $95,000 per beneficiary in 2026, or $190,000 with gift splitting.
- The election is reported on Form 709, and later exclusion gifts to that beneficiary in the period count against it.
- If the donor dies during the five years, the portion for the remaining years is included in the estate.
- The account owner keeps control of the 529 even though the gift is complete.
How do Crummey trusts qualify for the exclusion?
- Gifts to most trusts are future interests that don't qualify for the annual exclusion.
- A Crummey power gives beneficiaries a temporary right to withdraw each gift, making it a present interest.
- Beneficiaries typically receive written notice and a real window to withdraw, and courts look at whether the right is genuine.
- Lapsing withdrawal rights can have gift and generation-skipping tax effects, so drafting matters.
Why does the type of asset matter?
- Gifted property keeps the donor's basis and holding period, so the recipient's sale can realize the donor's gain.
- If property is worth less than its basis at the time of the gift, the recipient's basis for a loss is the lower value.
- Assets held until death generally get a stepped-up basis instead.
- Gifts to children can shift less income than expected because of the kiddie tax.
What about the lifetime exemption and state gift taxes?
- The July 2025 tax law set the exemption at $15 million per person for 2026, indexed afterward, with no scheduled sunset.
- Connecticut is the only state with a gift tax, and California has none.
- Some states have estate taxes with lower exemptions, so lifetime gifts can affect state estate tax.
- Keeping every Form 709 and appraisal makes it possible to track exemption used over a lifetime.
Key takeaways
- Up to $19,000 per recipient in 2026 passes free of gift tax and filing.
- Direct tuition and medical payments don't count against the exclusion.
- Gift splitting and 529 superfunding each require Form 709.
- Confirm filing and trust drafting with a CPA and estate attorney.
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