In 2014, the maximum gift tax rate is 40 percent. The gift tax rate is the tax rate a person must pay on money he gives away to others. The amount varies from year to year and from person to person.
There are both yearly and lifetime exclusions to the gift tax rules. Because of the high exclusions on monetary gifts, only people who give away a lot of money have to pay this tax. For each gift, the giver is responsible for paying the gift tax on any amount over the yearly exclusion. The gift tax is figured only on the amount that exceeds this yearly limit, and only if the total of all such excess amounts from that giver exceeds the lifetime exclusion. As of 2014, the yearly exclusion is $14,000 and the lifetime exclusion is $5.25 million.