The term gift tax applies as a federal tax that is applied on any type of individual giving of value from one person to another person. The gift tax is valued at $12,000 currently, though this value may change over time. For example, if an eligible gift is given to a person that is valued over this amount, the giver or recipient must pay a gift tax to the federal government. In order for something to be called a gift, the party that is receiving it must not pay the gift giver fair value for it. However, a gift tax may still apply if the gift giver does pay a portion of the value. It will just apply on the remaining value. There are exclusions to this policy, such as gifts to a spouse or to political organizations.