I Want to Give Money to My Son and His Wife. How Much Can I Give Without Triggering Taxes?

Let’s say that you would like to give money to your son and his wife. How much can you give them without triggering the gift tax? There are two answers to that. First, each year you can give each of them up to $19,000 without reporting the gift to the IRS. Second, in addition to this annual giving, you can give them up to $15 million over the course of your lifetime without paying taxes. These numbers represent the 2026 limits. Here’s what to know and how it might change over time.

For help managing estates or gifting, consider working with a financial advisor.

What Is the Gift and Estate Tax?

The gift and estate taxes apply to all unilateral transfers. A unilateral transfer is defined as any money or value that you give in exchange for nothing, or that you give in exchange for reduced value. For example, say that you sell your son and his wife a house worth $500,000 for $100. This would be a gift in the amount of $499,900 (the difference in value). Or, if you give them $100,000 free and clear, it would be a gift of $100,000.

The recipient does not pay the gift tax. It is paid by the person making the gift or by the estate in question. A gift giver typically reports potentially taxable gifts using IRS Form 709.

The gifts and estate tax is applied on a progressive scale, with brackets that range between 18% for taxable transfers under $10,000 and 40% for taxable transfers over $1 million. However, while the rates for this tax are relatively high, most households do not pay the gift or estate tax. This is because of the tax’s high exclusion thresholds.

The OBBBA Made the Higher Exemption Permanent

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. This legislation permanently extended and increased the exemption instead.

For 2026, the lifetime gift and estate tax exemption is $15 million per individual, or $30 million for a married couple. This is actually higher than the 2025 exemption of $13.99 million, an increase of just over $1 million per person, rather than the roughly 50% reduction that had been expected if the Tax Cuts and Jobs Act sunset had been allowed to proceed.

Unlike the TCJA provision it replaces, this exemption does not include a sunset date. It’s a permanent feature of the tax code going forward, and it will continue adjusting for inflation each year starting in 2027.

The annual exclusion for 2026 remains $19,000 per recipient, unchanged from 2025. Married couples can still combine their exclusions through gift-splitting, allowing up to $38,000 per recipient annually without filing requirements beyond the informational gift tax return needed to elect that split.

Applying this to the earlier example, giving $19,000 to your son and $19,000 to his spouse in 2026 would generally not require you to file a federal gift tax return. Even if you exceed the annual exclusion, you typically won’t owe gift tax unless your cumulative lifetime taxable gifts exceed the federal lifetime exemption, which is $15 million per person in 2026.

For most families, this permanent increase means federal gift and estate tax is even less likely to apply than before. That said, state-level estate or inheritance taxes may still apply at much lower thresholds depending on where you (as the giver) live, and a financial advisor or estate planning attorney can help determine whether any state-specific exposure remains, even where federal exposure doesn’t.

Click Your State to Get Matched With Financial Advisors That Serve Your Area

Choose your state and answer some questions to get matched with up to three fiduciary advisors that serve your area.

What Are the Exclusion Thresholds?

The gift tax has an annual exclusion and a lifetime exemption (the difference in terminology has little significance in this context). Gifts under these caps are tax-free.

The annual exclusion is the amount of money you can give to each recipient each year without reporting it on your taxes. In 2026, it’s set at $19,000. So, for example, you could give your son $19,000 without reporting it. Then you could give his wife another $19,000, again, without reporting it.

The annual exclusion applies independently each year. This means that you can give up to the exclusion each year regardless of any past year’s giving.

The lifetime exemption is the amount you can give away over the course of your lifetime without paying taxes. Each year, if you give away money in excess of your annual exclusions, you report the excess to the IRS. This reported amount is deducted from your lifetime exemption. Eventually, if you report a gift in excess of your remaining lifetime exemption, you are taxed on the remainder. In 2025, the lifetime exemption is set at $13.99 million. The lifetime exclusion applies per donor, meaning that it applies cumulatively to all of your giving regardless of recipients.

The lifetime exemption is cumulative. This means that each reduction to your remaining exemption amount is permanent. However, even if you have exhausted your lifetime exemption, you can continue to give untaxed gifts up to each year’s annual exemption. Both the annual exclusion and the lifetime exemption are increased each year to keep up with inflation.

In 2026, the lifetime exemption is set at $15 million. The lifetime exemption is cumulative. This means that each reduction to your remaining exemption amount is permanent. However, even if you have exhausted your lifetime exemption, you can continue to give untaxed gifts up to each year’s annual exemption. Both the annual exclusion and the lifetime exemption are increased each year to keep up with inflation.

A financial advisor could help you determine how any changes to the Tax Cuts and Jobs Act could affect your financial situation.

How Much Money Can You Give?

The maximum amount of money that you can give your son and his wife without any tax implications in a single year is that year’s annual exclusion, plus your remaining lifetime exemption. In 2026 those numbers would be:

Maximum unreported gift to your son: $19,000
Maximum unreported gift to his wife: $19,000
Lifetime exemption: $15 million
Total: $19,000 + $19,000 + $15 million = $15,038,000

If you have a spouse, they could also make the same amount of untaxed gifts. This would theoretically double your household’s eligible giving to $30,076,000.

In addition, each year you can continue to give unreported gifts to your son and his wife up to that year’s annual exclusion. You can also give reported gifts each year up to that year’s lifetime exemption increase, even if you have exhausted your lifetime exemption according to past limits. For example, say that in 2027 the annual exclusion increases to $20,000 and the lifetime exemption increases by $280,000, roughly 2%, to $15.28 million. (This is entirely speculative for the sake of demonstration. We have no information on the 2027 tax levels.)

With these assumptions in place, this year and next year you could give:

Maximum 2026 unreported gift to your son: $19,000
Maximum 2026 unreported gift to his wife: $19,000
Lifetime exemption: $15 million
Maximum 2027 unreported gift to your son: $20,000
Maximum 2027 unreported gift to his wife: $20,000
Lifetime exemption increase: $280,000
Total: $19,000 + $19,000 + $15 million + $20,000 + $20,000 + $280,000 = $15,358,000

Again, if you have a spouse they could also supplement your giving, potentially doubling this amount.

This example demonstrates how the rules work to determine how to best maximize your gifts to your son and his wife. Now it is up to you to tailor these rules to your own personal goals and circumstances. Remember, a financial advisor can help you navigate the situation and execute an appropriate strategy.

Bottom Line

You can give a generous amount to your son and his wife without worrying about taxes, as long as you stay within the IRS gift limits. For 2026, you can give up to $19,000 per person, meaning you and your spouse could jointly gift $38,000 each to your son and his spouse, for a total of $76,000 without triggering the federal gift tax reporting requirement. Gifts above that amount may require you to file a gift tax return, but you won’t owe any taxes unless you exceed the lifetime exemption, which is currently $15 million dollars. Thoughtful planning and documentation can help you give confidently, support your family, and stay compliant with tax laws.

Tips on Managing Gifts

A financial advisor can help you build a comprehensive retirement plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you are giving a large gift, it’s very important to manage and minimize your taxes. Although it has very high exemptions, once the gift tax does kick in those brackets can climb fast. So, let’s look at how you can minimize your taxes while you give a monetary gift.
Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.
Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.