Does Kansas Have a Gift Tax? Federal Rules Explained

Kansas does not impose a state-level gift tax, which means residents can transfer property to others without a specific state tax liability. This approach simplifies the process of giving and aligns Kansas with the vast majority of other states that also do not have a gift tax.

The Federal Gift Tax

While Kansas forgoes a gift tax, the federal government imposes one that applies to residents of all states. A gift is defined by the IRS as any transfer to an individual where full consideration is not received in return. The tax is structured around an annual exclusion and a lifetime exemption.

For 2025, the annual gift tax exclusion allows an individual to give up to $19,000 to any number of people without tax consequences. A married couple can combine their exclusions to give up to $38,000 to a single recipient. Gifts exceeding this annual amount are applied against the lifetime gift and estate tax exemption.

For 2025, the lifetime exemption is $13.99 million per person. This means an individual can give away up to this amount in gifts exceeding the annual exclusion over their lifetime before any gift tax is owed. Due to this substantial exemption, a very small percentage of taxpayers ever pay federal gift tax.

Kansas Estate and Inheritance Tax

Kansas also does not have a state estate tax or an inheritance tax. The state’s estate tax was repealed for deaths occurring on or after January 1, 2010. This repeal means that the assets left behind by a Kansas resident are not subject to any state-level tax upon their death.

An estate tax is paid by the deceased person’s estate before assets are distributed, while an inheritance tax is paid by the beneficiaries who receive the assets. Kansas has eliminated both, so wealth transfers at death are not taxed by the state, regardless of the estate’s size or who the heirs are.

Federal Gift Tax Filing Requirements

A federal gift tax return, IRS Form 709, must be filed in specific situations. The most common trigger is giving more than the $19,000 annual exclusion to any single individual in a calendar year. Even if no tax is due because of the lifetime exemption, a return is still required to report the gift that surpasses the annual limit.

Filing is also necessary for married couples who wish to “split” gifts, which allows them to combine their annual exclusions for a single gift. This is done by filing Form 709 to treat the gift as if each spouse gave half. Additionally, gifts of a “future interest,” where the recipient’s right to possess or enjoy the property is delayed, require a return regardless of the amount.