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Annual federal gift tax exclusion. In 2024, an individual can make a gift of up to $18,000 a year to another individual without federal gift tax liability. There's no limit on the number of individual gifts that can be made, and couples can give double that amount if they elect to split gifts.
The lifetime gift tax exemption is tied to both the annual gift tax exclusion and the federal estate tax. This guide explains how they are all connected.
Find common questions and answers about gift taxes, including what is considered a gift, which gifts are taxable and which are not and who pays the gift tax.
Additionally, the lifetime estate and gift tax exemption will increase to $13.99 million per individual for 2025, up from $13.61 million in 2024.
Each donor (the person making the gift) has a separate lifetime exemption that can be used before any out-of-pocket gift tax is due. In addition, a couple can combine their exemptions to get a total exemption of $27.22 million.
Taxpayers typically only pay gift tax on the amounts that exceed the allotted lifetime exclusion, which is $13.61 million in 2024 and $13.99 million in 2025. Gift tax rates range from 18% to 40%.
In general, the Gift Tax and Estate Tax provisions apply a unified rate schedule to a person’s cumulative taxable gifts and taxable estate to arrive at a net tentative tax. Any tax due is determined after applying a credit based on an applicable exclusion amount.