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Gift Tax

Taxes at a Glance

Senate Bill 2777/House Bill 2840, passed by the General Assembly on May 1, 2012, repeals Tennessee's tax on gifts effective January 1, 2012. This means taxpayers giving gifts currently taxed in accordance with Tenn. Code Annotated Section 67-8-101 will not be subject to gift tax. Federal gift tax laws remain in effect - for more information on federal gift tax, please visit www.irs.gov.

Please note that taxpayers giving gifts prior to January 1, 2012 may be subject to Tennessee's gift tax. For these periods, gift tax is imposed on the donor for gifts in excess of the allowable exemptions.

Exemptions Per Donee:

Date of Gift Class A Class B
2001 and earlier $10,000 $3,000
2002 through 2005 $11,000 $3,000
2006 through 2008 $12,000 $3,000
2009 through 2011 $13,000 $3,000
2012 and after
Not applicable - Tennessee Gift Tax Repealed

Class A includes husband, wife, son, daughter, lineal ancestor, lineal descendant, brother, sister, son-in-law, daughter-in-law, or stepchild. If a person has no child or grandchild, a niece or nephew of such person shall be a Class A donee (Tenn. Code Ann. Section 67-8-102(1)).

Class B is all others.

Due Date:

Annual - April 15
Extension - Up to six months may be granted upon written request

Tax Rate:

Graduated rates from 5.5% to 16%

For more information, please call (615) 532-6438

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