2027 Gift Tax Annual Exclusion — $20,000 per Person, $15.48 Million Lifetime
Rev. Proc. 2026-35 raises the gift tax annual exclusion to $20,000 for 2027 (from $19,000) and the lifetime estate and gift exemption to $15,480,000. What the limits mean, when you file Form 709, and why December 31 matters for 2026 gifts.
By Greg, Editor at Finance Maxx. Published
The IRS set the 2027 gift tax annual exclusion at $20,000 per recipient on November 5, 2026 in Revenue Procedure 2026-35 §3.46 (news release IR-2026-133). That’s up $1,000 from $19,000 in 2026. The same document raises the lifetime estate and gift exemption to $15,480,000.
The near-term date that matters is December 31, 2026: that’s the last day to use this year’s $19,000 per person. The annual exclusion resets every January 1 and does not carry over.
2026 vs 2027 gift and estate tax limits
| Item | 2026 | 2027 | Source |
|---|---|---|---|
| Annual exclusion, per recipient | $19,000 | $20,000 | Rev. Proc. 2025-32 / 2026-35 §3.46(1) |
| Married couple, per recipient (gift splitting) | $38,000 | $40,000 | 2 × annual exclusion |
| Gifts to a non-citizen spouse | $194,000 | $201,000 | §3.46(2) |
| Lifetime basic exclusion (estate and gift) | $15,000,000 | $15,480,000 | §2010(c)(3); Rev. Proc. 2026-35 §3.44 |
| Reporting threshold, gifts from foreign persons | $20,573 | $21,240.31 | §6039F; Rev. Proc. 2026-35 §3.51 |
The 2026 figures come from Rev. Proc. 2025-32. The lifetime exemption was raised to $15 million by the Working Families Tax Cuts law and is now indexed for inflation each year.
How the annual exclusion works
- Per giver, per recipient, per year. You can give $20,000 to each of as many people as you want in 2027 without filing anything.
- The giver reports, not the recipient. Gifts are not taxable income to the person who receives them.
- Present-interest gifts only. Cash, a check, or assets the recipient can use now qualify. Gifts of a future interest (for example, many trust transfers) don’t get the exclusion.
- Some payments don’t count at all. Tuition paid directly to a school and medical bills paid directly to a provider are excluded on top of the $20,000, and gifts to a U.S. citizen spouse are generally unlimited.
When you have to file Form 709
You file Form 709 if you give any one person more than the annual exclusion in a year, or if you and your spouse elect gift splitting. For 2026 gifts, it’s due with your individual return on April 15, 2027, and an extension of your Form 1040 also extends Form 709.
Filing usually means no tax is owed. The amount over the exclusion is subtracted from your lifetime $15.48 million exemption, and gift tax is only due after that is used up.
Example: In 2027 you give your daughter $50,000 for a house down payment. The first $20,000 is excluded. You file Form 709 reporting $30,000, which lowers your remaining lifetime exemption from $15,480,000 to $15,450,000. No check goes to the IRS.
529 plan “superfunding” in 2027
A 529 contribution is a gift to the beneficiary. The tax code lets you elect to spread a large contribution over five years, so in 2027 one person can put up to $100,000 (5 × $20,000) into a child’s 529 at once, or $200,000 for a married couple, without using lifetime exemption. You make the election on Form 709, and any other gifts to that child during the five years count against the same exclusion.
Year-end checklist for 2026 gifts
- Finish 2026 gifts by December 31. A check generally counts when it’s deposited or cashed, so mail it early enough to clear.
- Keep each gift at $19,000 or less per person if you want to skip Form 709 for 2026.
- Plan 2027 gifts at $20,000 per person from January 1.
- Charitable gifts are separate. For the new deduction for non-itemizers, see the 2026 charitable deduction guide.
Related reading
- 2027 tax brackets and standard deduction: the rest of Rev. Proc. 2026-35
- 2027 FSA limits: $3,500 health FSA, $700 carryover
- Trump accounts explained: another way families save for kids
- Federal tax calculator
- Net worth calculator
What this does not do
- It does not replace Rev. Proc. 2026-35, Form 709 instructions, or advice from an estate attorney.
- It does not cover state estate or inheritance taxes.
- Educational only, not tax or legal advice.
FAQ
What is the gift tax annual exclusion for 2027?
$20,000 per recipient, up from $19,000 in 2026 (Rev. Proc. 2026-35 §3.46).
How much can a married couple give in 2027 without filing?
$40,000 per recipient if each spouse gives $20,000 from their own funds. Gift splitting from one spouse’s money requires Form 709.
What is the 2027 lifetime gift and estate tax exemption?
$15,480,000 per person, up from $15,000,000 in 2026.
Do I owe tax if I give more than $20,000?
Usually not. You report the gift on Form 709 and it reduces your lifetime exemption.
Can I still use the $19,000 2026 exclusion?
Yes, for gifts completed by December 31, 2026. Unused exclusion does not carry forward.
What is the 2027 limit for gifts to a non-citizen spouse?
$201,000 for 2027, up from $194,000.