Do You Get Taxed on Gifted Down Payments?

One of the most common questions we get is: “If my parents give me money for a down payment, will I get taxed?” The short answer? Nope! While there is such a thing as a gift tax, it typically doesn’t apply to most people.

As of this year, you can receive up to $19,000 per person per year without triggering any tax. Anything above that amount just goes into what’s called a “lifetime gift tax exemption bucket.” That exemption currently sits at around $14 million. Meaning, unless someone is gifting you millions over their lifetime, neither you nor the giver will end up paying taxes on it.

So, go ahead—accept the help (if you’re lucky enough to have it), and don’t stress about tax season. Got more mortgage questions? Let’s chat!