Updated October 5, 2026. Quick answer: No. California has no gift tax for a gift made in 2026. Revenue and Taxation Code section 13301 says that neither the state nor any political subdivision “shall impose any gift, inheritance, succession, legacy, income, or estate tax” on gifts or on an estate or inheritance. The federal annual exclusion is $19,000 per recipient for 2026.
Putting a loan in writing? The interest limit, the signing rules and the time limit to sue, from the state’s own statutes: California promissory note.
California gift tax at a glance
| Item | What the documents say |
|---|---|
| State gift tax | None |
| What the documents say | Revenue and Taxation Code section 13301 bars any state or local gift, inheritance or estate tax; Proposition 6 (1982) |
| State estate or inheritance tax | None: no California estate tax return is required for decedents dying on or after January 1, 2005 |
| Federal annual exclusion, 2026 | $19,000 per recipient |
| Federal basic exclusion amount, 2026 | $15,000,000 |
| Source | California Legislature (leginfo); California State Controller’s Office; California Franchise Tax Board; IRS Revenue Procedure 2025-32 |
What the California documents say
The section sits in Part 8, the Prohibition of Gift and Death Taxes, which the Legislature’s page marks “Repealed and added June 8, 1982, by initiative Proposition 6”. The State Controller’s Office says it still collects a legacy tax only on old transfers: “For gifts made prior to June 8, 1982”, it continues to collect the Gift Tax.
Estates, inheritances and gifts near death in California
The Controller adds that for decedents who die on or after January 1, 2005, there is “no longer a requirement to file a California Estate Tax Return”. The Franchise Tax Board’s page on gifts received is about income tax: “do not include it in your income” is its instruction for a gift or inheritance, though later income from the property is taxable.
What applies to a gift from a California resident
Federal gift tax is separate and applies wherever you live. The IRS says gifts “not more than the annual exclusion for the calendar year” are generally not taxable gifts, and Revenue Procedure 2025-32 sets the 2026 annual exclusion at “the first $19,000 of gifts to any person”. The same procedure puts the basic exclusion amount at “$15,000,000 for calendar year 2026”. The IRS adds that “The donor is generally responsible for paying the gift tax”.
An illustration: a $50,000 gift to one child in 2026 is $31,000 above the federal annual exclusion, and California adds no gift tax of its own on top of that. CMG’s gift tax limit and Form 709 who must file pages explain the federal side, and how California taxes 401(k) and IRA withdrawals covers a gift of retirement money.
Common mistakes
- Reading the Controller’s legacy gift tax as a current tax; it applies only to gifts made before June 8, 1982.
- Assuming the state answer settles the federal one, or the answer for a gift of property located in another state.
Related: the federal gift tax limit, gift tax by state, California estate tax, and California probate cost.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for gifting and estate planning
If your portfolio is $250,000 or more, this connects you (free, with no obligation to hire anyone) with 2 to 3 vetted advisors.
Before you start, what actually happens. The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you.
WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your gifts
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment through this service, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- California Code, RTC 13301: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=13301
- California Estate Tax: https://www.sco.ca.gov/ardtax_estate_tax.html
- Gifts and inheritance: https://www.ftb.ca.gov/file/personal/income-types/gifts-and-inheritance.html
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- Frequently asked questions on gift taxes (Internal Revenue Service): https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.