Generally, you should not lie. Sotah 42a makes it clear that those who lie (shakranim) do not merit the divine presence. Who are these shakranim? dafyomi.co.il translates it as follows:
SHAKRANIM (9 categories):
(a) One who lies in order to steal from or abuse others, thereby
transgressing the prohibitions of "Lo Sigzol" and "Lo Soneh."
(b) One who lies in order to present himself as someone's friend so
that at some point in the future he will be able to steal from him or
(c) One who lies in order to receive some future benefit that he would
not have received otherwise.
(d) One who lies (even though he causes no harm) simply because he is
accustomed to lying, or because he does not clarify the facts before
he repeats them. (This is permitted "Mipnei ha'Shalom," for the sake
of peace; see Insights to Yevamos 65b.)
(e) One who acts towards others differently than the way he feels
inside, even though he does not openly lie.
(f) One who promises to give something to (or do something for) his
friend and does not fulfill his promise. If he offers his friend
something small or easy, even if he does not make a promise to give it
he still must keep his word.
(g) One who tells others about the way he helped someone else, when he
really did not help (Geneivas Da'as).
(h) One who praises himself, or accepts praise, for good traits that
he does not possess.
(i) A person who occasionally lies regarding issues that in no way
affect others, but merely because he derives benefit (such as
attention) from his lies.
So let it be clear that telling lies is not a positive habit to get into. But this is not the whole story. There are several instances in the Torah where 'little white lies' were told in pursuit of peace. The two most recognizable instances are:
-When G'd subtly rewords Sarah's reaction to Abraham (he changes the part where she sais that her husband is old) (bereishit 18:12 versus 18:13).
-When Josephs brothers tell Joseph that their father Ja'akov had sent them.
There is much to be said, but the article on chabad.org seems to give a nice overview and also makes it clear that to outright lie (as in spreading falsehoods) is not permitted, but slightly changing the truth for the sake of peace can sometimes be condoned, but never to be taken lightly.
One may "change the truth" for reasons of peace. We derive this from
a conversation between G‑d, Sarah and Abraham in Genesis.17 Sarah said
to herself: "After I have withered will I get smooth skin, and my
husband is old." When G‑d repeated her comments to Abraham, he said
that Sarah had said: "How can I give birth when I am old." As Rashi
explains, G‑d changed Sarah's words so that Abraham would not realize
that Sarah had made a denigrating remark about him.
Summarising the article continues:
Other examples of permitted white lies include:
Changing the truth in order to practice humility. [...]
Changing the truth in order to maintain modesty.
Changing the truth in order to protect someone else from harm or inconvenience [...]
A white lie said in order to protect someone from embarrassment. [...]
Using exaggerated expressions if it is clear that it's an exaggeration.[...]
There are some circumstances under which one is allowed to be deceptive in order to recoup losses that are owed to him. [...]
If someone does something for himself, but another understands that it was done to honor him, one does not have to correct this
Exceptions to the Exceptions
Despite these allowances, one should always attempt not to say an
outright lie, but rather to tell half truths.
Even in these cases, one should try to avoid lying to children, so as
not to train them to lie.
Also, even in these circumstances, one should try not to lie on a
The Magen Avraham says that even in the above circumstances, one may
only lie about the past but not about the future. For example, one may
not say: "I will do such and such" in order to make peace. Others
question this ruling.
These sources make no distinction between the jew and the non-jew, or the age of the recipients. One should simple not lie, regardless of whether they are jewish or not. It is expressely forbidden to lie to non-jews and jews alike under the concept of Geneivat da'ath (גניבת דעת) Chullin 94a
As Shmuel said: It is forbidden to deceive anyone, even an idolatrous gentile
If it is necessary to lie for the sake of peace (such as taking the blame for one's parent when confronted by the other parent) one may do so, although it is preferable to still stay as close to truth as possible.