From Yahoo Finance: 2025-03-28 14:40:00

Most households don’t have to worry about the gift tax. In 2025, you can give up to $19,000 per person to as many people as you want without taxes. The lifetime exemption is $13.99 million. The gift tax applies to unilateral transfers and below-value exchanges.

The gift tax brackets range from 18% to 40%. The tax is paid by the giver, not the recipient. The annual exemption and lifetime exemption determine taxable gifts. Very few households pay the gift tax due to high exemptions. The IRS adjusts numbers annually for inflation.

The annual exemption in 2025 is $19,000, per recipient. The lifetime exemption is $13.99 million. The exemptions apply to reportable gifts above the annual limit. Married couples can gift twice as much, with gift-splitting. The Generation Skipping Tax applies to gifts to recipients 37.5 years younger.

The lifetime exemption may halve at the end of 2025. Legislation changes impact gift tax laws. Married couples can give $38,000 per year per grandchild. The maximum giving amount depends on exemptions and relationships. Planning ahead for larger gifts is crucial due to exemption changes.

The gift tax applies to unilateral transfers and below-value exchanges. Giving up to the annual exemption is tax-free. A financial advisor can help manage gift taxes. Keeping an emergency fund is recommended. High-interest accounts can help earn compound interest.

Read more: How Much Money Can I Give My Grandchildren Without Triggering Gift Taxes?