Gift Tax Limit 2025. Federal tax law allows each taxpayer to gift up to $19,000 per year to one individual without incurring federal gift taxes. In a significant update for estate planning and wealth management, the internal revenue service (irs) has announced an increase in the estate and gift tax exemption for 2025.
With this change, in 2025, an individual may gift up to $19,000 to an unlimited number of recipients without federal gift tax consequences (meaning the gifts do not consume. The irs has revealed that, starting in 2025, inflation adjustments will bring significant increases to the annual gift tax exclusion and the lifetime estate and gift tax.