2lifetime Gift Tax Exclusion 2024. The federal government imposes a flat 40% tax on gifts to other individuals, with certain exceptions: 2024 lifetime gift and estate tax exemption update davis+gilbert llp, starting january 1, 2024, the federal lifetime gift and estate tax exemption amount will increase to $13.61.

Most taxpayers won’t ever pay gift tax because the irs allows you to gift up to $13.61 million (as of 2024) over your lifetime without having to pay gift tax. The gift tax, which can range from 18% to 40%, is levied regardless of the donor’s intent for the transfer to be considered a gift or not.