There are two levels of exemption from the gift tax. First, transfers of a present interest up to (as of 2010) $13,000 per person per year are not subject to the tax. An individual can make gifts up to this amount to as many people as he/she wishes each year. A married couple can pool their individual gift exemptions to make gifts worth up to $26,000 per recipient per year without incurring any gift tax. A lifetime gifting limit of $1,000,000 (gifts above the annual exclusions) is allowed before a gift tax is incurred.