Gift Tax Calculator — Global, Fast, and Free

Understanding gift tax: A global, plain‑English guide

Gift tax is a levy some jurisdictions apply when you transfer wealth to another person without receiving equal value in return. While rules vary worldwide, the logic is consistent: identify the portion of a gift that’s tax‑free, account for any lifetime exemptions, then apply your local rate or progressive brackets to the remainder.

Core concepts you should know

• Annual exclusion: A per‑recipient amount that can be gifted tax‑free each year. Multiply by the number of recipients for total annual exclusions.
• Lifetime exemption: A long‑term allowance that can offset taxable gifts beyond annual exclusions until it’s used up.
• Progressive brackets: Rates that apply to slices of the remaining taxable amount. If your country has a flat rate or no gift tax, use one bracket at 0–100% of taxable amount with the appropriate rate.
• Other deductions: Certain purposes (e.g., direct tuition or medical payments in some systems) might reduce taxable amounts. Enter such reductions in “Other deductions.”
• Documentation: Keep records of dates, amounts, recipients, exclusions, and exemption usage to support filings or future estate planning.

How the calculator models your result

• Step 1: It subtracts annual exclusion times the number of recipients from the total gift, never going below zero.
• Step 2: From what’s left, it uses your available lifetime exemption until either the exemption or the remainder hits zero.
• Step 3: Any remaining amount is “taxable after deductions.” The progressive brackets then compute estimated tax due.
• Step 4: A 3D‑styled doughnut shows how the total gift splits into exclusions, exemption use, taxable remainder, and the estimated tax due portion.

Tips for students and professionals

• Students: Learn the order of operations (exclusions → exemption → brackets). Try small scenarios to see how each lever changes the outcome.
• Professionals: Store common scenarios as presets in your notes. Adjust brackets to mirror current local law and document assumption dates.
• Everyone: When uncertain, run low, medium, and high cases to build a range of possible outcomes before you decide amounts or timing.

Important note

This tool is jurisdiction‑agnostic. Always confirm rates, exclusions, and exemptions for your country or region before filing or relying on results.

How to use the Gift Tax Calculator

1. Set currency: Choose a symbol to format results (e.g., $, €, £, ₹, ¥).
2. Enter gift and recipients: Input total gift value and the number of recipients.
3. Add exclusions and exemptions: Provide annual exclusion per recipient and any lifetime exemption still available.
4. Define brackets: Add one or more brackets with upper limit and rate. Use a single 0–infinity bracket for flat rates.
5. Calculate: Click Calculate to view the summary and the 3D doughnut chart.
6. Reset: Use Reset to clear all values and start fresh.

Frequently asked questions