Current for 2026•As of: July 2026

Gift Tax Calculator 2026 calculate allowances.

Calculate German gift tax: allowances (child €400,000, spouse €500,000), the 10-year rule and usufruct deduction under the Inheritance and Gift Tax Act (ErbStG)

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The gift

€
0 €10,000,000 €

Relationship

Prior gifts (10-year rule)

€
0 €2,000,000 €

Usufruct / right of residence

The donor reserves a right of use (e.g. a right of residence).

Gift tax allowances 2026

  • Spouse/civil partner: €500,000
  • Children: €400,000
  • Grandchildren: €200,000
  • Parents/grandparents: €20,000 (for inheritance: €100,000)
  • Other: €20,000

Allowances apply anew every 10 years!

Gift tax payable

0 €

Effective tax rate: 0.0 %

Tax classTax class 1

Tax class I (spouse, children, grandchildren)

Allowances

Personal allowance400,000 €
Remaining allowance400,000 €

Tax calculation

Value of the gift300,000 €
- Allowance400,000 €
Taxable acquisition0 €
× Tax rate7.0 %
Gift tax0 €

No gift tax due

The gift is below your allowance. No gift tax is due.

Note: gift vs. inheritance:

For gifts to parents/grandparents, tax class II applies (instead of I) and the allowance is only €20,000 (instead of €100,000 for inheritance).

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Related guides

Transferring Wealth

German gift tax 2026: allowances and the 10-year rule

German gift tax (Schenkungsteuer) applies when you transfer assets during your lifetime. Unlike inheritance tax, you can use the allowances again every 10 years – an important planning option for transferring wealth.

Key difference from inheritance tax: for gifts to parents or grandparents, only tax class II applies (instead of I) and the allowance is only €20,000 (instead of €100,000 for inheritance).

Gift tax allowances

Spouse: €500,000
Tax class I, usable every 10 years. The family home can be transferred tax-free.
Children: €400,000
Tax class I, separately per parent. Both parents together can therefore gift up to €800,000 tax-free.
Grandchildren: €200,000
Tax class I. Tip: chaining gifts through the children can allow higher amounts to pass on tax-free.
Parents/grandparents: €20,000
Tax class II (for gifts). Considerably lower than for inheritance (€100,000).

Example calculation: gifting a property to a child

Child receives a property (value: €600,000)

Child receives a property (value: €600,000)
ItemAmount
Value of the gift€600,000
Personal allowance (child)- €400,000
Taxable acquisition€200,000
Tax rate (tax class I)11%
Gift tax€22,000

With reserved usufruct (male donor aged 65, €12,000/year rental value)

With reserved usufruct (male donor aged 65, €12,000/year rental value)
ItemAmount
Value of the gift€600,000
Capitalized usufruct value (€12,000 × 11.444)- €137,328
Allowance (child)- €400,000
Taxable acquisition (rounded down to full €100)€62,600
Tax rate7%
Gift tax€4,382
Savings through usufruct€17,618

Tax optimization for gifts

With careful planning, gift tax can be significantly reduced or avoided entirely. The most important strategies at a glance:

Strategies for tax optimization

  1. 10-year strategy: Spread larger amounts of wealth across several gifts made 10 years apart. This lets you use the allowances more than once.
  2. Chain gifting: Gift to your children, who in turn gift on to grandchildren. This uses multiple allowances (caution: watch out for abuse-of-arrangements rules).
  3. Reserved usufruct: Retain a right of use (e.g. a right of residence). The capitalized value considerably reduces the taxable value.
  4. Favorability check: For larger estates: check whether a lifetime gift or a bequest is more tax-favorable.

Frequently asked questions about German gift tax

Everything about allowances, the 10-year rule and usufruct

Gift tax allowances depend on the degree of relationship and apply anew every 10 years: spouse €500,000, children €400,000 (per parent, so €800,000 from both together), grandchildren €200,000, siblings and other persons €20,000. Important: for parents and grandparents, a gift (as opposed to an inheritance) only gets €20,000.

Gifts from the same donor are added together within a 10-year period. The allowance therefore applies to the sum of all gifts made in that period. Once 10 years have passed, a new allowance period begins – an important planning option for gradual wealth transfer.

Gift tax = (value of the gift − allowance − any usufruct capital value) × tax rate. Example: a child receives a property worth €600,000, allowance €400,000, taxable acquisition €200,000, tax rate 11% (tax class I) → €22,000 gift tax. With a reserved usufruct, this can be reduced considerably.

The tax rates are identical (§ 19 ErbStG). The difference: for gifts to parents or grandparents, tax class II applies (instead of I for inheritance) and the allowance is only €20,000 instead of €100,000. In addition, the maintenance allowance (Versorgungsfreibetrag) does not apply to gifts.

With a reserved usufruct, the donor keeps a right of use (e.g. a right of residence) over the gifted item. The capitalized value of the usufruct is deducted from the value of the gift. It is calculated as the annual value × official multiplier (BMF table, depending on age and gender): for a 65-year-old donor and an annual value of €12,000, that is around €137,000 (men) or €151,000 (women) – which directly reduces gift tax.

Yes, gifts must be reported to the responsible tax office (Finanzamt) within 3 months. This also applies to gifts below the allowance. The reporting obligation applies to both the donor and the recipient.
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