Updated October 5, 2026. Quick answer: No. Tennessee has no gift tax for a gift made in 2026. The Department of Revenue’s Notice 12-11 says “Tennessee gift tax will not apply to transfers by gift” made on or after January 1, 2012. The federal annual exclusion is $19,000 per recipient for 2026.
Tennessee gift tax at a glance
| Item | What the documents say |
|---|---|
| State gift tax | None |
| What the documents say | Public Chapter 1085 (2012) repealed the Tennessee gift tax for transfers by gift made on or after January 1, 2012 |
| State estate or inheritance tax | None: no inheritance tax applies to estates of decedents dying in 2016 or after |
| Gifts made close to death | The three-year gift look-back applied to the inheritance tax, which has itself ended for deaths in 2016 or after |
| Federal annual exclusion, 2026 | $19,000 per recipient |
| Federal basic exclusion amount, 2026 | $15,000,000 |
| Source | Tennessee Department of Revenue; IRS Revenue Procedure 2025-32 |
What the Tennessee documents say
The notice describes itself as information about “Public Chapter 1085 (2012), which repeals the Tennessee gift tax”. The repealed tax was imposed by Tenn. Code Ann. section 67-8-101 and the sections after it.
Estates, inheritances and gifts near death in Tennessee
Notice 12-11 adds an effect on the inheritance tax: “Transfers made by gift during the three-year period ending on the date” of the decedent’s death remained includable in the inheritance tax calculation. That tax has since ended: Notice 12-13 says “No Inheritance Tax will apply to estates of decedents dying” in 2016 or after.
What applies to a gift from a Tennessee 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 Tennessee 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 Tennessee taxes 401(k) and IRA withdrawals covers a gift of retirement money.
What the documents do not say
- The documents read do not mention a Tennessee estate tax.
Common mistakes
- Relying on the three-year gift look-back for a recent death; the inheritance tax it fed no longer applies to estates of decedents dying in 2016 or after.
- 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, estate tax by state, and Tennessee probate cost.
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Answer againSources
- Gift Tax Repeal, Notice #12-11: https://www.tn.gov/content/dam/tn/revenue/documents/notices/gift/gift12-11.pdf
- Inheritance Tax Changes, Notice #12-13: https://www.tn.gov/content/dam/tn/revenue/documents/notices/inheritance/12-13.pdf
- 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.