The Gift Tax Limit 2025 (https://accountinglads.com/gift-tax/) generally means lifetime gift and estate tax exemption, which is a combination of the amount you can pass along a tax-free life and at death. As of 2025, this exemption will be adjusted by inflation, but in 2026 the bigger adjustment will be that the exemption will fall by approximately half because of the sunsets in tax laws. Rich people are advised to engage in strategic gifting when exemptions are high. Any gift exceeding the annual exclusion is charged against the lifetime limit and gift taxes are only levied at a rate of up to 40 percent once the lifetime exception has been exceeded.
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