2025 Gift Tax Exemption 2025. In a significant update for estate planning and wealth management, the internal revenue service (irs) has announced an increase in the estate and gift tax exemption for 2025. 30% but due to surcharge that effective rate became 42.744%.
The gift tax exclusion amount renews annually, so an individual who gifted $18,000 to someone in 2024 may gift $19,000 to that same person in 2025, without any. The 2025 federal estate and gift tax exemption will be increased to $13,990,000, up from $13,610,000 in 2024.