2023 Gift Tax Exclusion
The 2023 Gift Tax Exclusion is $17,000.
Effective 2023-01-01Source: Rev. Proc. 2022-38 (IRS)Verified 2026-08-30
Compared with 2022
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Annual exclusion per recipient | $16,000 | $17,000 | +$1,000 (+6.3%) |
Who it applies to
Taxpayers who make gifts to any individual during the calendar year.
What changed this year, and why
For 2023, the IRS increased the annual gift tax exclusion to $17,000 per recipient, up from $16,000 in 2022.
Common questions
- What is the annual gift tax exclusion for 2023?
- For 2023, the first $17,000 given to any one person during the year is excluded from the gift tax, provided the gift is not a future interest in property. This is an increase from $16,000 in 2022.
- Does the exclusion apply to all types of gifts?
- No. The exclusion applies only to present-interest gifts. Gifts of future interests in property do not qualify for the annual exclusion.
When a gift needs no return at all
For the 2023 tax year, you are not required to file IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return) if you meet all three of these conditions: you made no gifts to your spouse during the year; you gave no more than $17,000 to any single recipient; and every gift you made was a present interest. If any one of these conditions is not met—for example, you gave more than $17,000 to one person, or you made a gift of a future interest—you must file a return even if no tax is ultimately owed. Note that gifts qualifying for the educational or medical exclusions, or deductible gifts to charity, are generally disregarded for this filing threshold. Keep in mind that the $17,000 limit is the annual exclusion per recipient for 2023; gifts above that amount to the same donee must be reported.
Who does not need to file. If you meet all of the following requirements, you are not required to file Form 709. • You made no gifts during the year to your spouse. • You did not give more than $17,000 to any one donee. • All the gifts you made were of present interests.
2023 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
The gifts the exclusion does not cover
A gift qualifies for the annual exclusion only if the recipient receives a present interest in the property. When the donee's right to use, possess, or enjoy the property—or the income from it—is postponed to a later date, the transfer is a future interest and the $17,000 exclusion does not apply. The donor must report the entire gift on Form 709 even if its value is below the annual limit. Future interests include reversions, remainders, and similar estates or interests that take effect at some later time. In contrast, a present interest gives the donee immediate rights to the property or its income. A contribution to a qualified tuition program (QTP) on behalf of a designated beneficiary is treated as a present interest for this purpose, as are certain gifts to minors that meet specific conditions. Because the exclusion is unavailable, any future-interest gift uses part of the donor's lifetime exemption or may be subject to tax if the exemption has already been exhausted.
A gift of a future interest cannot be excluded under the annual exclusion. A gift is considered a present interest if the donee has all immediate rights to the use, possession, and enjoyment of the property or income from the property. A gift is considered a future interest if the donee's rights to the use, possession, and enjoyment of the property or income from the property will not begin until some future date.
2023 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
Who actually owes the gift tax
Under the federal gift tax rules, the person who makes the gift—the donor—is the one who owes any gift tax that becomes due. The recipient of the gift does not pay tax on what they receive, because the gift tax is imposed on the transferor, not the transferee. If the donor fails to pay the tax when it is due, however, the person who received the gift may be held liable for it. This fallback rule ensures that the government can still collect the tax even when the donor does not satisfy the obligation. When a donor dies before filing a required return, the executor of the donor's estate is responsible for filing Form 709 and paying any tax owed. Partnerships, corporations, and trusts that make transfers are not themselves treated as donors; instead, the individual partners, shareholders, or beneficiaries are considered the donors and may be liable for the resulting gift and generation-skipping transfer taxes.
• The donor is responsible for paying the gift tax. However, if the donor does not pay the tax, the person receiving the gift may have to pay the tax. • If a donor dies before filing a return, the donor's executor must file the return.
2023 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
Splitting a gift with your spouse
A married couple may not file a single joint gift tax return, but both spouses can agree to treat gifts made by either of them during the calendar year as having been made one-half by each spouse. When this election is in effect, a gift made entirely by one spouse is split for gift-tax purposes, so each spouse is treated as having made half of the gift to the donee. Both spouses must consent to the election, and once made, it generally applies to all gifts made by either spouse during that year, including gifts of property held as joint tenants or tenants by the entirety. To elect the split, each spouse must file his or her own Form 709 and sign the consent on Part 1 of the return. The spouses must have been married to each other at the time of the gift and may not remarry someone else before the end of the calendar year if they later divorce. The annual exclusion of $17,000 per donee then applies separately to each spouse's half of the gift.
If you and your spouse both consent, all gifts (including gifts of property held with your spouse as joint tenants or tenants by the entirety) either of you make to third parties during the calendar year will be considered as made one-half by each of you if all of the following apply.
2023 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
When the return is due
Form 709 is an annual return. For gifts made during calendar year 2023, the IRS generally accepts returns filed no earlier than January 1, 2024, and the return is due no later than April 15, 2024. When April 15 falls on a Saturday, Sunday, or legal holiday, the due date moves to the next business day. If the donor died during 2023, the executor must file the donor's 2023 return no later than the earlier of the due date (with extensions) for filing the donor's estate tax return, or April 15, 2024, or the extended due date granted for filing the donor's gift tax return. A taxpayer who cannot meet the April 15 deadline may request an automatic six-month extension by filing Form 8892; the extension moves the filing deadline but does not extend the time to pay any tax owed, which is still due on the original April date.
When To File Form 709 is an annual return. Generally, you must file Form 709 no earlier than January 1, but not later than April 15, of the year after the gift was made. However, in instances when April 15 falls on a Saturday, Sunday, or legal holiday, Form 709 will be due on the next business day.
2023 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2022-38 (IRS)
- Annual exclusion per recipient
the first $17,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503