Definition
The amount you can give each person per year without filing a gift tax return; it is $19,000 per recipient for 2026.
What it means
The federal gift tax applies to the giver, not the person who receives the gift. For 2026, you can give up to $19,000 to any number of people without reporting it. Married couples can combine their exclusions to give $38,000 to one person. Gifts above the annual amount are reported on Form 709 but usually do not cause any tax right away; they reduce your lifetime exemption, which is $15,000,000 for 2026. Paying someone's tuition directly to a school or medical bills directly to a provider does not count against the exclusion. Gifts to a spouse who is a U.S. citizen are generally unlimited; for a spouse who is not a citizen the 2026 annual limit is $194,000. Receiving a gift is generally not taxable income for the recipient.
Example
A parent who gives a child $25,000 in 2026 is $6,000 over the exclusion. The parent files Form 709, and the $6,000 reduces the lifetime exemption, but no gift tax is usually due.
Illustrative numbers only. Your situation will differ.