What Is the Annual Gift Tax Exclusion?

The annual gift tax exclusion lets you give up to $18,000 per person per year (in 2024) without filing a gift tax return or counting against your lifetime exemption. If you're married, you and your spouse can each give $18,000 to the same person — $36,000 total — through "gift splitting." There's no limit on how many people you can give to; you can give $18,000 each to 100 people if you want. Gifts within the annual exclusion are a simple way to reduce your taxable estate over time. The exclusion adjusts for inflation in $1,000 increments.