For 2025, the maximum amount an individual can gift to any one person tax-free without filing a gift tax return (IRS Form 709) is $19,000.
Key details about the 2025 gift tax exclusion:
- Per Recipient: You can give up to $19,000 to as many individuals as you want during the year.
- Gift Splitting (Married Couples): If you are married, you and your spouse can combine your exclusions to gift a total of $38,000 to each recipient without triggering a reporting requirement.
- Lifetime Exemption: Gifts exceeding the $19,000 annual exclusion amount count against your lifetime gift and estate tax exemption, which is $13.99 million per individual in 2025 (or $27.98 million per married couple). You still need to file Form 709 to report the excess amount, but you likely won't owe any gift tax unless you've exhausted your lifetime limit.
- Exempt Transfers: Certain transfers are not considered taxable gifts and do not count toward the annual exclusion or lifetime exemption:
- Payments made directly to an educational institution for a person's tuition.
- Payments made directly to a medical institution for a person's medical care expenses.
- Gifts to a U.S. citizen spouse.
- Gifts to qualifying charitable organizations.
The person making the gift (the donor) is typically responsible for paying any gift tax that is due, not the recipient. Most people never pay federal gift tax because the lifetime exemption is so high.
