The gift tax is a tax that, similar to estate tax, charges an amount on property that is being transferred between two people. The difference between the two is that while estate tax is charged on a persons entire estate whey die, gift tax is charged on things transferred while someone is still living. By IRS standards, a gift that meets their requirements must pay gift taxes to the federal government. The fact is, however, most gifts are not large enough to be required to pay gift taxes. This is why, in most cases, a gift tax is not paid on common gifts exchanged between two people. This year - 2009 - the standard gift tax exclusion is $13,000. According to this, gifts can be given until the giver has given more than 13,000 (or the annual exclusion in that year). Between husband and wife, the two establish a $26,000 exclusion to get and can also give freely amongst each another.