2024 Gift Tax Exclusion
The 2024 Gift Tax Exclusion is $18,000.
Effective 2024-01-01Source: Rev. Proc. 2023-34 (IRS)Verified 2026-08-29
Compared with 2023
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Annual exclusion per recipient | $17,000 | $18,000 | +$1,000 (+5.9%) |
Who it applies to
Individuals who make gifts to other persons during calendar year 2024
What changed this year, and why
For calendar year 2024, the annual gift tax exclusion under IRC § 2503 is $18,000 per recipient, an increase from the prior year.
Common questions
- Does the $18,000 exclusion apply to all gifts?
- Yes, for calendar year 2024, the annual exclusion is $18,000 per recipient. This applies to gifts of present interests only; gifts of future interests do not qualify.
Every amount on this page is a published figure rather than yours. The Annual gift tax exclusion calculator takes the number you enter and works it out against them, showing which published figure it used.
When a gift needs no return at all
A donor can skip filing Form 709 entirely only when three conditions are all satisfied at once. First, the donor must have made no gifts to a spouse during the calendar year, because any gift to a spouse normally must be reported so the marital deduction or gift-splitting election can be claimed. Second, the total value of gifts made to any single donee must be $18,000 or less, which is the 2024 annual exclusion amount; gifts at or under that threshold to one person do not, by themselves, trigger a filing. Third, every gift made during the year must be a present interest, meaning the recipient has immediate use and enjoyment of the property. If even one of the three tests fails, a return is required, regardless of whether any tax is ultimately owed. The rule is useful because it lets many modest givers avoid paperwork while still reserving the IRS's right to review larger or more complicated transfers.
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 $18,000 to any one donee. • All the gifts you made were of present interests.
2024 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
The gifts the exclusion does not cover
The 2024 annual exclusion of $18,000 applies only to gifts of present interests. A present interest means the donee has immediate rights to use, possess, and enjoy the property or its income. Gifts of future interests do not qualify for the annual exclusion at all. A future interest exists when the donee's rights to use or enjoy the property will not begin until some later date, such as reversions or remainders. Because future interests are never excluded, any gift of a future interest must be reported on Form 709 regardless of its dollar value, even if it is well below $18,000. This rule prevents donors from using delayed enjoyment trusts or similar arrangements to shelter transfers without filing. Exceptions exist for certain arrangements treated as present interests, such as contributions to qualified tuition plans or gifts to minors where the property and income may be spent for the minor's benefit before age 21.
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. Future interests include reversions, remainders, and other similar interests or estates.
2024 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
Who actually owes the gift tax
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. This means the primary legal obligation rests with the person making the gift, not the recipient. If the donor fails to pay, the IRS can collect the tax from the donee, though this is secondary liability. The rule applies regardless of the relationship between donor and donee or the size of the gift. If a donor dies before filing a return, the donor's executor must file the return and handle any tax due from the estate's assets. This structure ensures the IRS has a clear path to collection even when the original donor is unavailable, while keeping the primary burden on the person who chose to make the transfer.
• 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.
2024 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
Splitting a gift with your spouse
Generally, if you elect to split your gifts, you must split all gifts made by you and your spouse to third-party donees. This means gift splitting is all-or-nothing for the year: once elected, both spouses must treat every gift they make to anyone other than each other as made one-half by each spouse. The only exception is if one spouse gave the other a general power of appointment over a gift. To split gifts, both spouses must consent on Form 709, and each spouse must file a separate return even though the gifts are treated as made equally by both. This election can be advantageous when one spouse has most of the wealth and wants to use both spouses' $18,000 annual exclusions per donee, effectively doubling the amount that can be given tax-free to each recipient in 2024.
Generally, if you elect to split your gifts, you must split all gifts made by you and your spouse to third-party donees. The only exception is if you gave your spouse a general power of appointment over a gift you made.
2024 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
When the return is due
Form 709 is filed annually after the calendar year in which gifts were made. The return may be filed no earlier than January 1 but must be filed no later than April 15 of the year after the gift was made. For gifts made in 2024, this means the filing window opens on January 1, 2025 and closes on April 15, 2025. When April 15 falls on a Saturday, Sunday, or legal holiday, the due date moves to the next business day. An extension to file the federal income tax return automatically extends the gift tax return deadline as well. If no income tax extension is obtained, a separate extension request can be made using Form 8892. An extension grants more time to file, but it does not extend the time to pay any tax owed; payment deadlines remain separate. If the donor died during 2024, the executor must file by the earlier of the estate tax return due date or the gift tax return due date.
However, in instances when April 15 falls on a Saturday, Sunday, or legal holiday, Form 709 will be due on the next business day.
2024 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. 2023-34 (IRS)
- Annual exclusion per recipient
For calendar year 2024, the first $18,000 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 made during that year.