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Annually, the IRS updates the amount one can give free of federal gift and generation-skipping transfer (GST) tax to account for inflation. These adjustments impact the lifetime exclusion, which is the amount that one can give free of federal estate and generation-skipping transfer (GST) tax, either at lifetime or at death. The annual gift tax exclusion is also adjusted annually.
Lifetime Exclusion: How Much You Can Give Free of Tax
The lifetime exclusion for 2024 was $13,610,000 for individuals and $27,220,000 for married couples. In 2025, the lifetime exclusion is $13,990,000 for individuals and $27,890,000 for couples. A couple who has not previously made gifts can gift up to $27.89 million in 2025. In the case of a person who has already maxed out lifetime gifts, he or she may now give away another $760,000 tax-free in 2025 (which amounts to $1.52 million per couple).
Annual Gift Tax Exclusion: Give More, Tax-Free
The annual gift tax exclusion allows an individual to give a certain amount per recipient tax-free without using any of his or her lifetime exemption. For 2024, the amount was $18,000 per recipient, which increased to $19,000 for 2025. For married couples, this means that they can give $38,000 per year per recipient.
Special Exclusion for Non-Citizen Spouses
A special annual exclusion amount for a non-citizen spouse also received an inflation bump – for 2025, it rose to $190,000.
Maximize Your Tax-Free Giving
The team at Deka Law is ready to help you navigate your gifting strategy. Reach out to us today to learn how you can make the most of your tax-free giving opportunities.
