The IRS Hasn’t Set 2027 Gift Limits Yet. Your 2026 Window Closes December 31.

You can give $19,000 to as many people as you like in 2026 without filing a gift tax return, and whatever you don’t use by December 31 is gone. The annual exclusion is a per-year allowance under 26 U.S.C. § 2503(b), and the IRS confirmed the 2026 figure in Rev. Proc. 2025-32, section 4.42. An unused 2026 exclusion doesn’t roll into 2027.

As of October 19, 2026, the IRS still hadn’t published the 2027 figures. Last year it announced the 2026 numbers on October 9, in IR-2025-103. Whatever 2027 brings, it doesn’t change what you can do this year.

The 2026 numbers

The $15 million figure comes from the July 2025 federal tax law, Pub. L. 119-21, which amended 26 U.S.C. § 2010(c)(3). Rev. Proc. 2025-32 says the basic exclusion amount “will be adjusted for inflation for calendar year 2027 and future years.” Gifts within the $19,000 annual exclusion don’t touch that $15 million at all. Gifts above it do, and they need a return.

Why 2026 still matters if your estate is under $15 million

Very few California families will ever owe federal estate tax at $15 million per person. California has no estate tax and no gift tax either. Under Rev. & Tax. Code, § 13301, neither the state nor any city or county “shall impose any gift, inheritance, succession, legacy, income, or estate tax.” Voters put that in with Proposition 6 in 1982.

So for most families, the annual exclusion’s value is that it moves money with no paperwork. Help a child with a down payment, put money into a grandchild’s 529 plan, or cover a parent’s expenses, and as long as each person’s total stays at $19,000 or less for the year, there’s nothing to file with the IRS. Go over it and you owe a Form 709 gift tax return by the following April, even though no tax will be due.

How the exclusion has moved

The exclusion is indexed for inflation and rounded down to the next lower multiple of $1,000 (26 U.S.C. § 2503(b)(2)), so it moves in $1,000 steps and sometimes not at all.

At least one CPA newsletter, The Farm CPA Report, has published a projection of $20,000 for 2027 and labels it a projection. Don’t plan on a 2027 figure until the IRS releases it. It wouldn’t change the 2026 deadline anyway.

Married couples: community property does the splitting for you

A married couple can move $38,000 to each recipient in 2026. How they do it decides whether anyone files a return.

If the money is community property, the IRS treats the gift as made one-half by each spouse. The Form 709 instructions give the example of a $100,000 community property gift as “a gift of $50,000 made by each spouse.” In California, what a married person acquires during the marriage while living here is community property unless a statute says otherwise (Fam. Code, § 760). A $38,000 gift from a community account is $19,000 from each of you, which is inside both exclusions, so there’s nothing to file.

If one spouse gives separate property, the couple can still elect to treat it as made half by each under 26 U.S.C. § 2513. That’s gift splitting, and it always takes a return. The Form 709 instructions say you “must file a gift tax return to split gifts with your spouse (regardless of their amount).” When only one spouse gave, each recipient got $38,000 or less, and every gift was a present interest, only that spouse files.

A check counts when it’s deposited, and only if it clears

Writing a check on December 30 doesn’t put the gift in 2026. Under Rev. Rul. 96-56, an ordinary check to a person (as opposed to a charity) is treated as a completed gift on the date it’s deposited, cashed, or presented for payment, as long as all of these are true:

A check written December 26 and deposited January 2 is a 2027 gift. Mail checks in early December, or send a wire or bank transfer that lands before the 31st. If you’re giving to someone who’s slow to deposit things, a transfer is safer.

What to do before December 31

Make a list of the people you want to give to and the amount for each. For each name, add up everything you’ve already given that person this year, including anything you paid on their behalf that wasn’t tuition or medical care paid directly to the provider. Then decide what comes from community property and what doesn’t. That one choice decides whether you file anything in April.

Two cautions. A large gift of an appreciated asset, like stock or a rental house, gives up the step-up in basis the recipient would get if they inherited it instead, which can cost them more in capital gains tax than the gift saves. See gifting appreciated assets vs. the step-up in basis and gifting a house to your children in California. And if a recipient gets means-tested benefits like SSI or Medi-Cal, a cash gift can affect their eligibility. Talk to a lawyer before giving, because a special needs trust may be the better way to do it.

Talk to a real California estate attorney

If you’re planning year-end gifts, I’ll go through your list with you and tell you which gifts need a return. Talk to Eric Ridley is a free 30-minute consultation by phone or Zoom, anywhere in California. Or call (805) 244-5291.

Frequently asked questions

What is the gift tax annual exclusion for 2026?

$19,000 per recipient, per giver, under Rev. Proc. 2025-32, section 4.42(1). It’s the same as 2025. Gifts to a spouse who isn’t a U.S. citizen have a $194,000 exclusion for 2026.

Does the unused annual exclusion carry over to next year?

No. The exclusion under 26 U.S.C. § 2503(b) applies to gifts made during each calendar year. Whatever part of the 2026 exclusion you don’t use by December 31, 2026 is gone.

Has the IRS announced the 2027 gift tax exclusion?

Not as of October 19, 2026. The IRS announced the 2026 figures on October 9, 2025 (IR-2025-103). Projections of $20,000 for 2027 are unofficial until the IRS publishes its revenue procedure.

Does California have a gift tax?

No. Rev. & Tax. Code, § 13301, added by Proposition 6 in 1982, bars the state and local governments from imposing any gift, inheritance, or estate tax. Only the federal gift tax applies to Californians.

Do married couples need to file Form 709 to give $38,000 to one person?

Not if the gift comes from community property, because each spouse is treated as giving half, or $19,000. If one spouse gives separate property and the couple elects gift splitting under 26 U.S.C. § 2513, a Form 709 is required regardless of the amount.

When does a gift by check count for the year?

Under Rev. Rul. 96-56, a check counts as a gift in the year it’s deposited, cashed, or presented, if the bank pays it on first presentment and the giver is alive when it’s paid. A check deposited after December 31 is a gift in the new year.