§ 2502. Rate of tax

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1954

   Aug. 16, 1954, ch. 736, 68A Stat. 403 · 68A Stat. 403

   Enacted · 26 U.S.C. § 2502

   Aug. 16, 1954, ch. 736, 68A Stat. 403

   Source evidence

   Code source credit
   Aug. 16, 1954, ch. 736, 68A Stat. 403

2. 1970

   Excise, Estate, and Gift Tax Adjustment Act of 1970

   Pub. L. 91–614 § 102(a)(2)(A) · 84 Stat. 1836

   Substituted · 26 U.S.C. § 2502(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

   Source evidence

   Code amendment note
   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.

   Enacted provision · exact public law section
   (A) So much of subsection (a) of section 2502 as precedes the rate schedule is amended to read as follows: “(a) Computation or Tax.— The tax imposed by section 2501 for Ante, p. 1838. each calendar quarter shall be an amount equal to the excess of— “(1) a tax, computed in accordance with the rate schedule set forth in this subsection, on the aggregate sum of the taxable gifts for such calendar quarter and for each of the preceding calendar years and calendar quarters, over “(2) a tax, computed in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar years and calendar quarters.”

3. 1970

   Excise, Estate, and Gift Tax Adjustment Act of 1970

   Pub. L. 91–614 § 102(a)(2)(B) · 84 Stat. 1836

   Substituted · 26 U.S.C. § 2502(b)

   Pub. L. 91–614, § 102(a)(2)(B), substituted definition of “calendar quarter” for definition of “calendar year”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 91–614, § 102(a)(2)(B), substituted definition of “calendar quarter” for definition of “calendar year”.

   Enacted provision · exact public law section
   (B) Subsections (b) and (c) of section 2502 are amended to read as follows: “(b) Calendar Quarter.— Wherever used in this title in connection with the gift tax imposed by this chapter, the term ‘calendar quarter includes only the first calendar quarter of the calendar year 1971 and succeeding calendar quarters. “(c) Preceding Calendar Years and Quarters.— Wherever used in this title in connection with the gift tax imposed by this chapter— “(1) The term ‘preceding calendar years’ means calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970. The term ‘calendar year 1932’ includes only the portion of such year after June 6, 1932. “(2) The term ‘preceding calendar quarters’ means 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.”

4. 1970

   Excise, Estate, and Gift Tax Adjustment Act of 1970

   Pub. L. 91–614 § 102(a)(2)(B) · 84 Stat. 1836

   Substituted · 26 U.S.C. § 2502(c)

   Pub. L. 91–614, § 102(a)(2)(B), substituted definition of “preceding calendar years and quarters” for definition of “preceding calendar years”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 91–614, § 102(a)(2)(B), substituted definition of “preceding calendar years and quarters” for definition of “preceding calendar years”.

   Enacted provision · exact public law section
   (B) Subsections (b) and (c) of section 2502 are amended to read as follows: “(b) Calendar Quarter.— Wherever used in this title in connection with the gift tax imposed by this chapter, the term ‘calendar quarter includes only the first calendar quarter of the calendar year 1971 and succeeding calendar quarters. “(c) Preceding Calendar Years and Quarters.— Wherever used in this title in connection with the gift tax imposed by this chapter— “(1) The term ‘preceding calendar years’ means calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970. The term ‘calendar year 1932’ includes only the portion of such year after June 6, 1932. “(2) The term ‘preceding calendar quarters’ means 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.”

5. 1976

   Pub. L. 94–455 title XX § 2001(b)(1) · 90 Stat. 1520

   1. Inserted · 26 U.S.C. § 2502(a)

      Pub. L. 94–455 inserted “tentative” after “(1) a” and “(2) a”

   2. Substituted · 26 U.S.C. § 2502(a)

      Pub. L. 94–455 substituted in par. (1) “section 2001(c)” for “this subsection” after “set forth in”

   Source evidence

   Code amendment note
   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”.

   Enacted provision · exact public law section
   (1) Rate of tax.— Subsection (a) of section 2502 (relating 26 USC 2502. to rate of gift tax) is amended to read as follows: “(a) Computation of Tax.— The tax imposed by section 2501 for each calendar quarter shall be an amount equal to the excess of— “(1) a tentative tax, computed in accordance with the rate schedule set forth in section 2001(c), on the aggregate sum of Ante, p. 1846. the taxable gifts for such calendar quarter and for each of the preceding calendar years and calendar quarters, over “(2) a tentative tax, computed in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar years and calendar quarters.”

6. 1981

   Economic Recovery Tax Act of 1981

   Pub. L. 97–34 title IV § 442(a)(2) · 95 Stat. 175

   1. Substituted · 26 U.S.C. § 2502(a)

      Pub. L. 97–34 substituted in introductory text and par. (1) “calendar year” for “calendar quarter”

   2. Substituted · 26 U.S.C. § 2502(a)

      Pub. L. 97–34 substituted in introductory text and par. (1) “calendar periods” for “calendar years and calendar quarters”

   Source evidence

   Code amendment note
   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”.

   Enacted provision · exact public law section
   (2) Section 2502.— Section 2502 (relating to rate of tax) is amended to read as follows: “SEC. 2502. RATE OF TAX. “(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 in accordance with the rate Ante, p. 300. schedule set forth in 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 in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar periods. “(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— “(1) calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970, “(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 “(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. “(c) Tax To Be Paid by Donor.— The tax imposed by section 2501 shall be paid by the donor.”

7. 1981

   Economic Recovery Tax Act of 1981

   Pub. L. 97–34 title IV § 442(a)(2) · 95 Stat. 175

   Substituted · 26 U.S.C. § 2502(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

   Source evidence

   Code amendment note
   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.

   Enacted provision · exact public law section
   (2) Section 2502.— Section 2502 (relating to rate of tax) is amended to read as follows: “SEC. 2502. RATE OF TAX. “(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 in accordance with the rate Ante, p. 300. schedule set forth in 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 in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar periods. “(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— “(1) calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970, “(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 “(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. “(c) Tax To Be Paid by Donor.— The tax imposed by section 2501 shall be paid by the donor.”

8. 1981

   Economic Recovery Tax Act of 1981

   Pub. L. 97–34 title IV § 442(a)(2) · 95 Stat. 175

   Redesignated · 26 U.S.C. § 2502(c); 26 U.S.C. § 2502(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)

   Source evidence

   Code amendment note
   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).

   Enacted provision · exact public law section
   (2) Section 2502.— Section 2502 (relating to rate of tax) is amended to read as follows: “SEC. 2502. RATE OF TAX. “(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 in accordance with the rate Ante, p. 300. schedule set forth in 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 in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar periods. “(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— “(1) calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970, “(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 “(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. “(c) Tax To Be Paid by Donor.— The tax imposed by section 2501 shall be paid by the donor.”

9. 1987

   Pub. L. 100–203 § 10401(b)(2)(B)(i) · 101 Stat. 1330

   Substituted · 26 U.S.C. § 2502(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)”

   Source evidence

   Code amendment note
   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)”.

   Enacted provision · exact public law section
   (i) by striking out “in accordance with the rate schedule set forth in section 2001(c)” in paragraph (1) and inserting in lieu thereof “under section 2001(c)”, and

10. 1987

    Pub. L. 100–203 § 10401(b)(2)(B)(ii) · 101 Stat. 1330

    Substituted · 26 U.S.C. § 2502(a)(2)

    Pub. L. 100–203, § 10401(b)(2)(B)(ii), substituted “under such section” for “in accordance with such rate schedule”

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 100–203, § 10401(b)(2)(B)(ii), substituted “under such section” for “in accordance with such rate schedule”.

    Enacted provision · exact public law section
    (ii) by striking out “in accordance with such rate schedule” in paragraph (2) and inserting in lieu thereof “under such section”.

11. 2001

    Pub. L. 107–16 § 511(d) · 115 Stat. 38

    Amended · 26 U.S.C. § 2502(a)

    Pub. L. 107–16, § 511(d), amended subsec. (a) generally. Prior to amendment, text read as follows: “The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of—

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 107–16, § 511(d), amended subsec. (a) generally. Prior to amendment, text read as follows: “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.”

    Enacted provision · exact public law section
    (d) Maximum Gift Tax Rate Reduced to Maximum Individual Rate After 2009.— Subsection (a) of section 2502 (relating to rate of tax) is amended to 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 tentative tax to be computed is: The tentative tax 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. “If the amount with respect to which the tentative tax to be computed is: The tentative tax is: 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.”.

12. 2010

    Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

    Pub. L. 111–312 title III § 302(b)(2) · 124 Stat. 3296

    Amended · 26 U.S.C. § 2502(a)

    Pub. L. 111–312 amended subsec. (a) to read as if amendment by Pub. L. 107–16, § 511(d), had never been enacted. See 2001 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 111–312 amended subsec. (a) to read as if amendment by Pub. L. 107–16, § 511(d), had never been enacted. See 2001 Amendment note below.

    Enacted provision · exact public law section
    (2) Modification of gift tax rate.— On and after January 1, 2011, subsection (a) of section 2502 is amended to read as such subsection would read if section 511(d) of the Economic Growth and Tax Relief Reconciliation Act of 2001 had never been enacted.

    Effective date note
    Pub. L. 111–312, title III, § 302(b)(2), Dec. 17, 2010, 124 Stat. 3301, provided that the amendment by section 302(b)(2) is effective on and after Jan. 1, 2011.

13 of 14 references resolved to an enrolled provision · 1 partial