Gift Tax Calculator 2026
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)
As of September 2026Basis: §§ 14–19 ErbStG, § 14 BewGCalculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
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I give to .
More detailsPrior gifts €0 · Usufruct no
Gifts within the last 10 years are added together (§ 14 ErbStG).
Your gift tax
€0
€0No gift tax – €100,000 of the allowance is still free.
Tax class I – tax rate by bracket
RZ-26 · headon.pro
Gift allowance by relationship
Allowances renew every 10 years. Tap a row to calculate with it.
What you can do
No gift tax due
The gift is below your allowance. Still free: €100,000.
Compare with an inheritance
How this was calculated
- Gift
- €300,000
- Personal allowance
- − €400,000
- Taxable acquisitionRounded down to full €100 (§ 10 ErbStG)
- €0
- × Tax rate (tax class I)
- 7%
- Your gift tax
- €0
- Remaining allowance
- €400,000
Basis: allowances § 16 ErbStG, tax classes § 15, rates and hardship relief § 19, aggregation § 14 ErbStG, usufruct § 14 and § 16 BewG with Finance Ministry multipliers from 1 Jan 2026.
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
- 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
- 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 rate
- 7%
- 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
- 110-year strategySpread larger amounts of wealth across several gifts made 10 years apart. This lets you use the allowances more than once.
- 2Chain giftingGift to your children, who in turn gift on to grandchildren. This uses multiple allowances (caution: watch out for abuse-of-arrangements rules).
- 3Reserved usufructRetain a right of use (e.g. a right of residence). The capitalized value considerably reduces the taxable value.
- 4Favorability checkFor 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
How high are the gift tax allowances in 2026?
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.
What is the 10-year rule for gifts?
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.
How do I calculate gift tax specifically?
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.
How does gift tax differ from inheritance tax?
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.
What is a usufruct and how does it affect gift tax?
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.
Do I have to report a gift to the tax office?
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.