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  1. IRC
  2. Subtitle B
  3. Chapter 12
  4. Subchapter A
  5. § 2502

Sec. 2502. Rate Of Tax

I.R.C. § 2502(a) Computation Of Tax —
The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of—
I.R.C. § 2502(a)(1) —
a tentative tax, computed under section 2001(c), on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, over
I.R.C. § 2502(a)(2) —
a tentative tax, computed under such section, on the aggregate sum of the taxable gifts for each of the preceding calendar periods.
I.R.C. § 2502(b) Preceding Calendar Period —
Whenever used in this title in connection with the gift tax imposed by this chapter, the term “preceding calendar period" means—
I.R.C. § 2502(b)(1) —
calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970,
I.R.C. § 2502(b)(2) —
the first calendar quarter of calendar year 1971 and all calendar quarters intervening between such calendar quarter and the first calendar quarter of calendar year 1982, and
I.R.C. § 2502(b)(3) —
all calendar years after 1981 and before the calendar year for which the tax is being computed.
For purposes of paragraph (1), the term “calendar year 1932” includes only that portion of such year after June 6, 1932.
I.R.C. § 2502(c) Tax To Be Paid By Donor —
The tax imposed by section 2501 shall be paid by the donor.
(Aug. 16, 1954, ch. 736, 68A Stat. 403; Dec. 31, 1970, Pub. L. 91-614, title I, 102(a)(2), 84 Stat. 1839; Oct. 4, 1976, Pub. L. 94-455, title XX, 2001(b)(1), 90 Stat. 1849; Aug. 13, 1981, Pub. L. 97-34, title IV, 442(a)(2), 95 Stat. 320; Dec. 22, 1987, Pub. L. 100-203, title X, 10401(b)(2)(B), 101 Stat. 1330-431; June 7, 2001, Pub. L. 107-16, title V, 511(d), 115 Stat. 38; Pub. L. 111-312, title III, Sec. 302(b)(2), Dec. 17, 2010, 124 Stat. 3296.)
BACKGROUND NOTES
AMENDMENTS
2010—Subsec. (a). Pub. L. 111-312, 302(b)(2), amended subsec. (a) to read as it would read if section 511(d) of Pub. L. 107-16 had never been enacted. Before amendment it read as follows:
“(a) Computation Of Tax.—
“(1) In General.—The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of—
“(A) a tentative tax, computed under paragraph (2), on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, over
“(B) a tentative tax, computed under paragraph (2), on the aggregate sum of the taxable gifts for each of the preceding calendar periods.
“(2) Rate Schedule.—
 

If the amount with respect to which the    The tentative tax is:
tentative tax to be computed is:

Not over $10,000                           18% of such amount.

Over $10,000 but not over $20,000          $1,800, plus 20% of the 
                                             excess over $10,000.

Over $20,000 but not over $40,000          $3,800, plus 22% of the 
                                             excess over $20,000.

Over $40,000 but not over $60,000          $8,200, plus 24% of the 
                                             excess over $40,000.

Over $60,000 but not over $80,000          $13,000, plus 26% of the 
                                             excess over $60,000.

Over $80,000 but not over $100,000         $18,200, plus 28% of the 
                                             excess over $80,000.

Over $100,000 but not over $150,000        $23,800, plus 30% of the 
                                             excess over $100,000.

Over $150,000 but not over $250,000        $38,800, plus 32% of the 
                                             excess over $150,000.

Over $250,000 but not over $500,000        $70,800, plus 34% of the  
                                             excess over $250,000.

Over $500,000                              $155,800, plus 35% of the 
                                             excess over $500,000.
2001—Subsec. (a). Pub. L. 107-16, 511(d), amended subsec. (a). Before amendment it read as follows:
“(a) Computation of tax
“The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of--
“(1) a tentative tax, computed under section 2001(c), on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, over
“(2) a tentative tax, computed under such section, on the aggregate sum of the taxable gifts for each of the preceding calendar periods.”
1987--Subsec. (a)(1). Pub. L. 100-203, 10401(b)(2)(B)(i), substituted “under section 2001(c)” for “in accordance with the rate schedule set forth in section 2001(c)”.
Subsec. (a)(2). Pub. L. 100-203, 10401(b)(2)(B)(ii), substituted “under such section” for “in accordance with such rate schedule”.
1981--Subsec. (a). Pub. L. 97-34 substituted in introductory text and par. (1) “calendar year” for “calendar quarter” and in pars. (1) and (2) “calendar periods” for “calendar years and calendar quarters”.
Subsec. (b). Pub. L. 97-34 substituted definition of “preceding calendar period” for “calendar quarter”, the latter including only the first calendar quarter of the calendar year 1971 and succeeding calendar quarters (covered in par. (2)), the former incorporating former subsec. (c)(1) definition of “preceding calendar years” as meaning calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970 and “calendar year 1932” as including only the portion of such year after June 6, 1932, and former subsec. (c)(2) definition of “preceding calendar quarters” as meaning the first calendar quarter of calendar year 1971 and all calendar quarters intervening between such calendar quarter and the calendar quarter for which the tax is being computed.
Subsecs. (c), (d). Pub. L. 97-34 redesignated subsec. (d) as (c). Former subsec. (c), defining “preceding calendar years” and “preceding calendar quarters”, was incorporated in subsec. (b).
1976--Subsec. (a). Pub. L. 94-455 inserted “tentative” after “(1) a” and “(2) a” and substituted in par. (1) “section 2001(c)" for “this subsection” after “set forth in”.
1970--Subsec. (a). Pub. L. 91-614, 102(a)(2)(A), substituted a computation of tax formula based on the current calendar quarter, preceding calendar quarters, and preceding calendar years for a formula based entirely on the current and preceding calendar years.
Subsec. (b). Pub. L. 91-614, 102(a)(2)(B), substituted definition of “calendar quarter” for definition of “calendar year”.
Subsec. (c). Pub. L. 91-614, 102(a)(2)(B), substituted definition of “preceding calendar years and quarters” for definition of “preceding calendar years”.
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111-312, Sec. 302(b)(2)), applicable on and after January 1, 2011.
Section 304 of Pub. L. 111-312, which was struck by Pub. L. 112-240, Sec. 101(a)(2), provided the following sunset provision:
“SEC. 304. APPLICATION OF EGTRRA SUNSET TO THIS TITLE. Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall apply to the amendments made by this section.”
EFFECTIVE DATE OF 2001 AMENDMENT
Amendment by Pub. L. 107-16, Sec. 511(d), applicable to gifts made after December 31, 2009.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, Sec. 101(a), and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012), provided that:
“(a) IN GENERAL.--All provisions of, and amendments made by, this Act shall not apply--
“(1) to taxable, plan, or limitation years beginning after December 31, 2012, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2012.
“(b) APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.-Subsection (a) shall not apply to section 803 (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 applicable in the case of decedents dying, and gifts made, after Dec. 31, 1987, see section 10401(c) of Pub. L. 100-203, set out as a note under section 2001 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97-34, set out as a note under section 2501 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 2001(d)(2) of Pub. L. 94-455 provided that: “The amendments made by subsections (b) and (c)(2) [enacting section 2505, amending sections 2502 and 2504, and repealing section 2521 of this title] shall apply to gifts made after December 31, 1976.”
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a note under section 2501 of this title.