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There is no gift tax in Pennsylvania. The federal gift tax has an exemption of $16,000 per recipient per year for 2022 and $17,000 in 2023.

Vehicles received as gifts are not subject to sales tax. However, the recipient of the gift must show that either the purchaser paid sales tax on the vehicle at the time of purchase or he/she paid use tax on the current fair market value of the vehicle in order to register the vehicle in Pennsylvania.

For help with the gift tax or any other personal finance issues you may have, consider working with a financial advisor. The annual gift tax exclusion of $17,000 for 2023 is the amount of money that you can give as a gift to one person, in any given year, without having to pay any gift tax.

Pennsylvania does not have gift tax however, there is a federal gift tax. The IRS defines a gift as a transfer of property from one individual to another, where the giver does not receive payment for the full market value. Gifts can include things like money, property and any other assets of value.

Are gifts of cash taxable for PA personal income tax? Pennsylvania does not tax gifts made from detached or disinterested generosity. However, transfers of cash or property in payment for compensable services, or as an inducement to perform compensable services, is taxable as PA taxable compensation.

If you receive a gift, you do not need to report it on your taxes. ing to the IRS, a gift occurs when you give property (like money) without expecting anything in return. If you gift someone more than the annual gift tax exclusion amount ($17,000 in 2022), the giver must file Form 709 (a gift tax return).