Are Wedding Gifts Taxable?

Matt Boyd is an assistant director of High-Net-Worth Tax Planning at Northwestern Mutual.

Receiving a cash gift from a loved one for your wedding can be a great way to start off married life. But it might make you think about tax time and whether the gift counts as income. We’ve got good news! As the recipient, you do not have to claim cash gifts as income, so you aren’t required to pay taxes on them. But depending on the size of the financial gift and history of giving, a very generous donor might owe taxes on the gift.

Read on to learn the ins and outs of cash gifts and when they might be taxable.

Do you have to pay taxes on wedding gifts?

No, cash received as a gift is not taxable income. This means a married couple does not have to pay any federal income tax on gifts they receive at their wedding, including cash or physical items. They also won’t owe taxes on money donated to a charitable organization in their honor.

The concept of a “gift tax” sounds like it would apply to the recipient, but it’s the person giving the gift who may have tax implications to consider. Whether tax is owed depends on both the current amount and how much they have cumulatively given away in their lifetime.

How much money can I give a married couple without owing gift tax?

For 2025, the annual gift tax exclusion limit is $19,000 per recipient. The total annual exclusion can therefore be $38,000 if parents each give the annual exclusion amount to one recipient or $76,000 if parents each give the annual exclusion amount to both of the newlyweds. If your gift exceeds the annual exclusion, you probably won’t owe gift tax, but you will have to report your gift to the IRS by filing Form 709, and the amount in excess of the annual exclusion will count toward your lifetime gift limit.

For an individual, anything over $13.99 million gifted (in excess of annual exclusions) during your lifetime will trigger a gift tax. The tax rate on a taxable gift, after all exemptions have been used, is 40 percent. The cumulative gift exemption used will also reduce, dollar for dollar, the estate tax exemption remaining at death. To minimize their tax burden, high-net-worth individuals who may owe estate tax should be strategic in using the gift tax exemption.

As you plan for the future, keep in mind that annual exclusions and lifetime exemptions are constantly changing—sometimes for annual inflation adjustments and sometimes for changes to federal law. The exemption level in 2025 is based on the 2017 Tax Cuts and Jobs Act, which is set to expire at the end of 2025. Assuming new tax legislation passes in 2025, it will likely set a new exemption level. The annual exclusion may not change significantly but is increased periodically for inflation.

If I pay for my child’s wedding, is that considered a gift?

In many cases, no. A parent who pays vendors, such as caterers and florists, would probably not be viewed as making a transfer to their child. Rather, they are essentially paying to host an event, which is not only for the child’s benefit but also for the parent’s benefit.

But transferring cash to a child, who then uses that cash to pay vendors, could technically be viewed as a gift. And transferring noncash assets to a child, or paying debts on behalf of a child, could technically also be viewed as a gift. If the amounts being paid by a parent exceed available annual exclusion(s), then it may be worth having a discussion with a tax advisor.

If I receive a large cash gift, how will the IRS know it’s a gift?

If the gift exceeds the annual limit of $19,000 (per recipient), the gift giver is required to file IRS Form 709, which is separate from the income tax return. This would indicate to the IRS that the cash transfer is indeed a gift. You may want to request a copy for your records.

If the gift is less than $19,000, you could ask for a gift letter. It’s a written statement documenting the cash transfer and clarifying that the funds are a personal gift—not a loan—and do not need to be paid back.

Gift letters are most commonly used when parents help their children buy a home, such as by paying the down payment, but they can be used to document any kind of gift. The letter should be written and signed by the gift giver and include the following information:

• Names and contact info of involved parties
• Details about the relationship between the donor and the recipient
• The dollar amount of the gift
• The purpose of the gift
• An explicit statement that the gift is not expected to be paid back

Strategies such as gift splitting with a spouse and leveraging gift tax exclusions can help lower the gift tax burden or avoid it altogether. Consult with a tax advisor to learn more.

Get help from a financial expert

To help plan your financial life together, turn to your Northwestern Mutual financial advisor. They can help you have honest discussions about your money and goals so you can move forward as a team. They can take a look at all your financial tools and help you find blinds spots and opportunities that might otherwise be overlooked.

This publication is not intended as legal or tax advice. Consult with a tax professional for tax advice that is specific to your situation.