Gift Tax is a federal tax imposed on the transfer of money or property from one person to another without receiving something of equal value in return. This tax applies to gifts exceeding a certain annual exclusion amount, which is adjusted periodically. The giver, not the recipient, is responsible for paying the tax. In the United States, individuals can give up to a specified amount each year to any number of people without incurring Gift Tax. If the total value of gifts exceeds this limit, the excess amount may be subject to taxation, and the giver may need to file a Gift Tax return.