What is the federal gift tax rate for 2025?

Federal gift tax is graduated from 18% to a top rate of 40% under the unified rate schedule (IRC §2001(c)). The 40% top rate applies to cumulative taxable amounts over $1,000,000. But the $13,990,000 lifetime exemption (a $5,541,800 credit) means tax is rarely actually paid. (Source: IRS Instructions for Form 709 (2025); IRC §2001(c).)

Why does the gift tax rate table go to 40% if almost no one pays it?

The 40% rate only bites on cumulative taxable gifts above the $13,990,000 (2025) lifetime exemption. The rate schedule is "unified" with the estate tax, so the same 18%–40% brackets compute the tentative tax, which the $5,541,800 unified credit then offsets for the first $13,990,000. (Source: IRC §2001(c); IRS Instructions for Form 709 (2025).)

Is this federal or state gift tax?

This is the federal gift tax only. There is effectively no state gift tax in the U.S. today — Connecticut, the last state with a standalone gift tax, repealed it for gifts made on or after January 1, 2023. (Source: Connecticut Department of Revenue Services.)

Is my data sent anywhere when I use this calculator?

No. All calculations run entirely in your browser using JavaScript. No gift amounts, recipient counts, or other inputs are ever transmitted to any server.

What is the Federal Gift Tax Rate Schedule 2025 — 18% to 40%?

Free 2025 federal gift tax rate schedule (the "Table for Computing Gift Tax", IRC §2001(c)) — graduated brackets from 18% to 40% — plus a calculator showing why the $13,990,000 lifetime exemption means almost no one pays it. Source: IRS Rev. Proc. 2024-40 and IRS "Instructions for Form 709 (2025)"; rate schedule per IRC §2001(c). Runs entirely in your browser; no data sent to any server. Not tax or legal advice. It runs free in your browser on Gera Tools, with nothing uploaded.

Federal Gift Tax Rate Schedule 2025 — 18% to 40%

Name: Federal Gift Tax Rate Schedule 2025 — 18% to 40%
Creator: Gera Tools
License: https://creativecommons.org/licenses/by/4.0/

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Federal Gift Tax Rate Schedule 2025 (2025)

The federal gift tax uses a graduated rate schedule from 18% to 40% (the unified rate schedule, IRC §2001(c)). The table below is the same one used to compute the tentative tax on Form 709 — but the $13,990,000 lifetime exemption means almost no one actually pays it.

Enter a gift below to see how much fits inside the annual exclusion, how much is a taxable gift, how much of your lifetime exemption it uses, and whether any gift tax is actually due. Everything runs in your browser — no data is transmitted.

Important: This covers the federal gift tax only — it excludes generation-skipping transfer (GST) tax and any state rules (there is effectively no state gift tax today). The lifetime figure is the unified gift & estate tax exemption you share across lifetime gifts and your estate. Source: IRS Rev. Proc. 2024-40 and IRS “Instructions for Form 709 (2025)”; rate schedule per IRC §2001(c); figures for the 2025 tax year, data as of 2024-10-22. Rates and exemptions change; this is not tax or legal advice.