The federal gift tax threshold for 2024

You can give up to $18,000 per person per year without triggering federal gift tax. If you are married, you and your spouse can each give $18,000 to the same person, which means a couple can give $36,000 to one recipient without filing a gift tax return. This amount changes most years — it rose from $17,000 in 2023 — so the threshold you see this year may differ next year.

The limit applies to each recipient separately. You can give $18,000 to your daughter, $18,000 to your son, $18,000 to a friend, and $18,000 to a charity in the same year without any tax consequence. The limit resets on January 1 each year.

If you give more than $18,000 to one person in a single year, you do not pay tax on the overage when ready. Instead, you file a gift tax return (Form 709) and the excess counts against your lifetime exemption — a separate, much larger threshold that currently sits at $13.61 million per person. Most people never hit that lifetime limit.

Key Takeaways

  • You can give $18,000 per person per year in 2024 without filing a gift tax return or owing any tax.
  • Married couples can give $36,000 combined to one person because each spouse has their own $18,000 limit.
  • Gifts to spouses, charities, and medical or tuition payments made directly to providers do not count toward the limit at all.
  • If you exceed $18,000 to one person, you file Form 709 but typically owe no tax unless you have already used most of your $13.61 million lifetime exemption.
  • The annual threshold changes yearly and is set by the IRS based on inflation.

Gifts that do not count toward the limit

Certain gifts fall outside the $18,000 threshold entirely. Gifts to your spouse are unlimited — you can give your spouse any amount without tax or filing. Gifts to a U.S. citizen spouse have no limit; gifts to a non-citizen spouse are capped at $185,000 per year in 2024, but that is a separate, higher threshold.

Payments made directly to a school or university for tuition do not count, even if the amount is far above $18,000. The same applies to payments made directly to a medical provider for someone else's healthcare costs. The key is that you pay the provider directly, not the person receiving the education or care. If you give money to your grandchild and they use it to pay tuition, that counts toward the limit.

Charitable donations to may have access to organizations also do not count toward the annual limit. You can give any amount to a registered charity without triggering gift tax.

What happens if you give more than $18,000

If you give $25,000 to your daughter in one year, the first $18,000 is tax-free. The remaining $7,000 does not disappear — it counts against your lifetime exemption of $13.61 million. You file Form 709 to report the gift, but you owe no tax unless you have already used up most or all of your lifetime exemption.

The lifetime exemption is per person. Your daughter's $7,000 overage reduces your personal exemption from $13.61 million to $13.603 million. Unless you are giving away tens of millions of dollars over your lifetime, this will not affect you.

If you are married, your spouse has their own separate lifetime exemption. Gifts from your spouse do not reduce your exemption, and vice versa.

State gift taxes

Most states do not have a gift tax. However, a few states — including Connecticut, Delaware, Louisiana, North Carolina, and Tennessee — have had gift taxes in the past or currently do. The rules and thresholds vary by state and change over time.

If you live in or give to someone in a state with a gift tax, check your state's tax authority website or speak with a tax professional. Federal gift tax and state gift tax are separate — you may owe one, both, or neither depending on where you live and where the recipient lives.

Gifts to minors and trusts

Gifts to minors count toward the $18,000 limit just like gifts to adults. If you give $18,000 to your 10-year-old grandchild, that uses your full annual threshold for that recipient. The child's age does not change the limit.

If you want to give larger amounts to minors, you can use a Uniform Transfers to Minors Act (UTMA) account or a 529 education savings plan. A 529 plan allows you to contribute up to $18,000 per year per beneficiary without gift tax, but you can also make a special election to treat a single large contribution as if it were spread over five years — allowing you to put up to $90,000 into a 529 for one child in one year without gift tax.

Gifts to trusts have their own rules and are more complex. If you are considering a trust, consult a tax attorney or CPA.

How to track gifts and file if needed

You do not need to report gifts under $18,000 to the IRS. Keep your own records of who received what and when, especially if you give to the same person multiple times in a year. If you give $10,000 in January and $9,000 in November to the same person, that is $19,000 total and you will need to file Form 709.

Form 709 is filed with your annual tax return (Form 1040). You can file it yourself or have a tax professional prepare it. Filing does not mean you owe tax — it straightforward reports the gift and documents that it counts against your lifetime exemption.

If you are unsure whether a gift counts toward the limit or whether you need to file, a CPA or tax attorney can review your situation. The cost of a consultation is usually far less than the cost of an IRS audit.

Frequently Asked Questions

Do I owe tax if I give my child $20,000?

No. You file Form 709 to report the $2,000 overage, but you owe no tax. The $2,000 counts against your $13.61 million lifetime exemption. Unless you give away tens of millions of dollars in your lifetime, this will not result in any tax bill.

Can my spouse and I each give $18,000 to the same person?

Yes. Each of you has your own $18,000 annual limit. You can give $18,000 and your spouse can give $18,000 to the same child, parent, or friend in the same year, for a total of $36,000, with no tax or filing required.

Does paying someone's medical bills count as a gift?

Only if you give money to the person and they pay the bill. If you pay the medical provider directly for someone else's care, it does not count toward the $18,000 limit at all. You can pay unlimited amounts directly to doctors and hospitals without gift tax.

What if I give a gift in December and another in January to the same person?

The gifts are in different tax years, so each one has its own $18,000 threshold. A $15,000 gift in December and a $15,000 gift in January are both under the limit and require no filing. If both gifts were in the same calendar year, they would add up to $30,000 and trigger a Form 709 filing.

Does the $18,000 limit explore to gifts I receive?

No. The limit applies only to the person giving the gift. You can receive unlimited gifts from anyone without tax or filing requirements. Your parents, grandparents, friends, and employers can all give you money or property without any tax consequence to you.