For the most part, the gift taxes that are set by the federal government are the only gift taxes that apply to monetary gifts and estate gifts that are given. These gift and estate tax rates are invariable between states and the same rate applies to each state in the country. However, there are certain states that have imposed regulations regarding their own set of gift taxes for the same situations in which gifts are taxed federally.
The seven states that have imposed their own gift tax requirements are Wisconsin, Delaware, New York, Louisiana, North Carolina, South Carolina, and Tennessee. Each of these states has their own rates at which they tax valuable gifts from one person to another. With these states, there are certain situations in which there are exemptions to the gift taxes. These exemptions must be researched for each state individually.
Gift taxes, at either the federal or state level, are not assessed for every single financial gift. The rates for gift taxes usually only kick in after a set amount of money has been given, and these rates are set at an amount high enough so that most people don’t have to worry about them for routine financial gifts. For instance, most states adopt the law that any gift under the maximum value of $13,000 is considered exempt from any sort of gift tax, federal or otherwise. These values are subject to change, however, so it might be wise to look into the current tax year's rates.
Further, there may also be exemptions to the gift tax if qualified medical or educational expenses are paid directly to a medical care provider or to a educational institution.
If you need help determining whether or not a financial gift you have received or gifted is subject to a gift tax, consult with an experienced tax attorney.