Over the years the lifetime exemption from federal gift taxes has significantly increased while the gift tax rate has significantly decreased. Below is a chart that shows the changes in the lifetime gift tax exemption and top gift tax rate from 1997 through 2014.
Tax years 2010 through 2012 are based on the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act ("TRUIRJCA" for short) that was signed into law by President Obama on December 17, 2010. While this law was only supposed to be in effect for two years, on January 2, 2013, President Obama signed the American Taxpayer Relief Act ("ATRA" for short) into law, which has made the rules governing federal estate taxes, gift taxes and generation skipping transfer taxes as enacted by TRUIRJCA permanent for 2013 and later years with once notable exception - the top estate tax, gift tax and generation skipping transfer tax rate is increased from 35% under TRUIRJCA to 40% under ATRA. Aside from this, in future years the lifetime exemption from gift taxes will continue to be indexed for inflation.
Do not confuse the lifetime gift tax exemption with the annual exclusion from gift taxes: Annual Gift Tax Exclusion vs. Lifetime Gift Tax Exemption.
To view the annual exclusion from gift taxes for the years 1997 through 2014, please refer to the following: Table Showing Annual Exclusion From Gift Taxes: 1997 - 2014.
To view the federal estate tax exemptions and top estate tax rates from 1916 (the first year the estate tax was enacted) through 1997, please refer to the following: Table Showing Federal Estate Tax Exemption and Rate: 1916 - 1997.
To view the federal estate tax exemptions and top estate tax rates from 1997 through 2014, please refer to the following: Table Showing Federal Estate Tax Exemption and Rate: 1997 - 2014
To view the federal generation skipping transfer tax exemptions and top generation skipping transfer tax rates from 1997 through 2014, please refer to the following: Table Showing Federal Generation Skipping Transfer Tax Exemption and Rate: 1997 - 2014
Historical and Future Federal Gift Tax Exemptions and Rates
|Year||Gift Tax Exemption||Top Gift Tax Rate|