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The gift tax is a hybrid tax on gifts and other transfers. It partially overlaps with the estate tax. Here’s how it works

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The gift tax is a hybrid tax on gifts and other transfers.

In 2025 , you can give away up to $19,000 to each recipient without needing to report it to the IRS .

You can give another $13.61 million tax-free throughout your lifetime.

For help navigating the complications of gift tax laws, consider consulting with a fiduciary financial advisor.

The lifetime exclusion is a shared exclusion for gifts and estates.

During your lifetime, you can make any amount of gifts tax-free to the amount you have remaining in your lifetime exclusion.

Gifts and estates are taxed at between 18% and 40% depending on the amount in question.

Each year the IRS allows you to give an amount tax-free to any number of recipients.

Over your lifetime you can give away more than $13 million without paying any taxes on it either.

The gifts and estate tax is a hybrid tax on unilateral transfers.