Is There a Gift Tax in Florida?

••• Creatas/Creatas/Getty Images

The government can charge taxes on gifts that are over a certain value, either as a monetary gift or another item of value. Each state sets up its own rules regarding any tax that it collects from its residents for gifts. As of 2018, Connecticut and Tennessee are the only states having a stand-alone gift tax, but some states charge taxes if a gift is given when a person is contemplating death. In Florida, there is no gift tax, which means gifting a car to a family member shouldn't be a problem!

Tips

  • There is no gift tax in the state of Florida.

Finding Out About State Gift Tax

Florida does not have a state gift tax as of 2018. Prior to 2005, the state had a state gift tax, but the Economic Growth and Tax Relief Reconciliation Act phased it out. This means that a resident of Florida can give a gift to another person of money, a car or other type of gift of any value without having to pay the state any amount for tax.

Looking at Florida Estate Tax

Florida does not impose a tax on the estate of a Florida resident who dies as of 2005. Prior to 2005, Florida had a “pickup tax” that allowed the state to collect a credit from the IRS on the federal estate tax return that it collected from people who filed a federal tax return. Current federal estate tax laws no longer have the government collecting any part of a return that will go to the state for estate tax purposes. With that in mind, you can be confident that a Florida car gift tax won't be a problem!

Obtaining More Information About Exceptions

If a person wants to give a person more than $14,000 in 2017 or $15,000 in 2018, federal tax laws provide some exceptions to make this happen. This applies to all manner of gifts, including an auto title! For example, paying someone’s medical expenses directly to the medical provider or by paying tuition directly to a primary school, secondary school or institution of higher learning does not trigger the gift tax. The gift tax doesn't apply if you're giving a spouse a gift. You can also provide gifts to charities over $14,000 in 2017 or $15,000 in 2018 without paying gift tax.

Reporting Your Taxes

You can use IRS Form 1040 to report any related income information for federal purposes.

References

About the Author

Samantha Kemp is a lawyer for a general practice firm. She has been writing professionally since 2009. Her articles focus on legal issues, personal finance, business and education. Kemp acquired her JD from the University of Arkansas School of Law. She also has degrees in economics and business and teaching.

Photo Credits

  • Creatas/Creatas/Getty Images