What is the 2023 gift tax exemption?

In addition, the estate and gift tax exemption will be $12.92 million per individual for 2023 gifts and deaths, up from $12.06 million in 2022. This increase means that a married couple can shield a total of $25.84 million without having to pay any federal estate or gift tax.

What is the 2024 lifetime gift limit?

The 2024 lifetime gift limit is $13.61 million, up from $12.92 million in 2023. And because it’s per person, married couples can exclude double that in lifetime gifts. For example, if you give your brother $50,000 in 2024, you’ll use up your $18,000 annual exclusion.

How much tax do you pay if you give a gift in 2026?

(Estimates suggest a reduction close to $7 million or less). If you are wealthy and have a large estate, gifts given in 2026 or beyond (if the limit sunsets as scheduled) could be subject to up to 40% gift tax. Meanwhile, gifts given before 2026 benefit from the high lifetime tax exemption.