What Is Gift Tax?
Gift tax is a tax on transfers of money or property to another person without receiving full value in return. In the US, the giver — not the recipient — is responsible for any gift tax. Gifts up to an annual exclusion amount per recipient are not taxable and need no gift tax return.
Annual and Lifetime Limits
Gifts above the annual exclusion generally require a gift tax return, but tax is usually owed only after the giver’s lifetime exemption is used up. Both amounts are adjusted periodically.
Common Exclusions
Gifts to a spouse who is a US citizen and direct payments of tuition or medical expenses are generally excluded.
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🔗 Related Terms
More Taxes Terms
- Additional Medicare Tax
- Adjusted Gross Income (AGI)
- Alternative Minimum Tax (AMT)
- Capital Gains Tax
- Capital Loss
- Child Tax Credit
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.