To fill out an Affidavit of Motor Vehicle Gift Transfer, enter the donor’s and recipient’s identifying information, copy the vehicle details from the existing title, declare on the form that no money, promise of payment, or debt was exchanged, sign it in front of a notary along with the recipient, and submit it with the signed title and supporting documents to your state’s motor vehicle agency. The affidavit is what tells the state a transfer is a gift rather than a sale, and it is the document that unlocks any sales tax exemption you qualify for.
What To Gather Before You Start
Have every piece of information in front of you before you begin. Most states reject affidavits with corrections or white-out, and a single wrong digit in a VIN is one of the most common reasons a form gets kicked back.
- Donor’s full legal name (exactly as it appears on the title), current mailing address, and driver’s license number.
- Recipient’s full legal name, address, and driver’s license number. If more than one person is receiving the vehicle, you need this information for each of them.
- Vehicle year, make, model, VIN, current odometer reading, and the title number from the existing certificate of title.
- The exact date of the transfer. This date starts the clock on your state’s filing deadline.
- The relationship between donor and recipient. Many states restrict the sales tax exemption to close family, so the form asks you to name the relationship even when it seems obvious.
- Fair market value of the vehicle. Several states require this figure even though no money changed hands. Kelley Blue Book or a similar guide gives you a defensible number.
Filling Out Each Section
The affidavit is usually a single page. Use black ink, print clearly, and write “N/A” in any field that does not apply rather than leaving it blank.
In the donor section, enter the donor’s name exactly as it reads on the title. Any inconsistency between the affidavit and the title can trigger a rejection. Add the donor’s address and contact fields.
Move to the recipient section and enter the same information for the person receiving the vehicle. If two or more people are receiving it jointly, watch for whether the form uses “and” or “or” between the names. That choice determines whether both recipients must sign to later transfer or sell the vehicle, or whether either one can act alone.
In the vehicle section, copy the VIN directly from the title or the door jamb plate and check every digit. Enter the year, make, model, and the current odometer reading. The odometer figure on the affidavit must match what you put on the separate odometer disclosure statement.
The gift declaration is the heart of the affidavit. It asks you to confirm three things: no payment was made, no payment was promised, and no debt was assumed in connection with the transfer. Some forms use yes/no questions; others ask for a short written statement. Answer every prompt. If the vehicle has no lien, say so explicitly. The purpose of this section is to establish that the transfer carries zero financial consideration.
Writing “Gift” on the Title
On the title itself, the donor signs the release-of-interest line and the recipient fills in their name, address, and driver’s license number in the new-owner section. Where the title asks for a purchase price, write “Gift.” Do not leave it blank, and do not enter “$0.” Both are common causes of rejection.
If the Vehicle Still Has a Loan
You generally cannot gift a vehicle that has an outstanding loan. The lienholder is named on the title and holds a legal interest in the vehicle until the loan is paid off and the lien is released. Two options exist if you want to gift a vehicle with a loan on it: pay off the balance, wait for the lien release and clear title, then complete the gift; or have the recipient refinance the loan in their own name, which likely disqualifies the transfer as a gift because the recipient has assumed a debt.
Read the debt-assumption question on the affidavit carefully. If the recipient took on any debt in connection with the transfer, the transaction probably will not qualify for a sales tax exemption.
Notarizing and Signing
Both donor and recipient must sign the affidavit, and in most states those signatures have to be witnessed and stamped by a notary public who verifies each signer’s identity. Showing up at the motor vehicle office with an unnotarized affidavit is one of the most common reasons people have to make a second trip.
Banks, credit unions, UPS stores, and many insurance agencies provide notary services, sometimes free for customers. Some motor vehicle offices have notaries on site, but call ahead rather than assume. If the donor and recipient cannot appear together, most states accept separately notarized signatures as long as each one is individually notarized.
Documents To Submit With the Affidavit
The affidavit is one piece of a package. A typical filing includes:
- The signed vehicle title, with the donor’s release-of-interest signature and the recipient’s information on the new-owner section.
- An odometer disclosure statement. Federal law requires an odometer reading for most vehicles under 20 years old. Some states put this on the title itself; others use a separate form.
- Proof of identity for donor and recipient, typically a driver’s license or state-issued ID.
- Proof of liability insurance in the recipient’s name. If insurance is not yet in place, some states allow a “title only” application without registration.
- A title and registration application, which the recipient completes.
- A sales tax exemption form, if your state uses one separate from the affidavit.
Deadlines, Fees, and Where To File
Submit the full package to your state’s motor vehicle agency. Depending on the state, that is a DMV office, a Secretary of State branch, or a county tax assessor-collector. Some states require in-person filing for title transfers; others accept mail or online submissions.
Most states give you between 15 and 60 days from the transfer date to apply for the new title. Missing that deadline triggers late penalties, which can range from about $20 to several hundred dollars depending on the state. Title transfer fees generally fall between about $15 and $75. Registration fees are separate and depend on factors like vehicle weight, model year, and county. Keep copies of everything you submit.
Sales Tax and Who Qualifies for the Exemption
The financial reason most people fill out this affidavit is to avoid sales or use tax. On a purchase, you owe sales tax based on the price paid or the vehicle’s fair market value. A legitimate gift with no consideration can eliminate that tax, but the exemption is not automatic.
Many states limit the exemption to immediate family: spouses, parents, children, grandparents, grandchildren, and sometimes siblings, stepchildren, or stepparents. Gift a vehicle to a friend or a cousin and you will likely owe sales tax on the fair market value regardless of what the affidavit says. A few states charge a flat nominal fee on qualifying family gifts instead of a full exemption. Confirm the rule with your state’s motor vehicle or tax agency before assuming zero tax. Title and registration fees still apply either way.
Federal Gift Tax Is Separate
State sales tax and federal gift tax are two different obligations, and people mix them up constantly. The affidavit handles the state side. The federal side depends on the vehicle’s fair market value.
For 2026, the IRS lets you give up to $19,000 per recipient per year without any gift tax filing.1Internal Revenue Service. Frequently Asked Questions on Gift Taxes If the vehicle is worth more than that, the donor must file IRS Form 709 with their federal tax return for the year.2Internal Revenue Service. Instructions for Form 709 (2025) Filing does not mean owing tax; it reports the gift. The amount above $19,000 counts against the lifetime exemption, which is $15,000,000 for 2026.3Internal Revenue Service. Whats New Estate and Gift Tax
Very few people owe actual federal gift tax on a vehicle, but the filing requirement catches donors off guard. Gift a car worth $25,000 and Form 709 is required even though the tax owed is zero. The IRS values the gift at fair market value on the date of transfer, not what the donor originally paid. Married couples can elect to split the gift and effectively double the annual exclusion to $38,000 for one vehicle, but both spouses must file Form 709 to make that election.
Do Not Label a Sale as a Gift
States actively watch for sales disguised as gifts. Red flags include a transfer between unrelated people, a high-value vehicle, or a donor who has “gifted” several vehicles in a short period. If the state determines you misrepresented a sale, you owe the full sales tax you tried to avoid plus penalties and interest.
The exposure runs further than back taxes. Signing a false affidavit can be a misdemeanor, with fines reaching $10,000 or more for an individual, and both donor and recipient can be held liable.
Odometer fraud on the disclosure statement carries its own federal penalties. A false reading can result in civil penalties up to $10,000 per violation, capped at $1,000,000 for a related series of violations, and knowingly and willfully falsifying the reading can lead to up to three years in prison.4Office of the Law Revision Counsel. 49 USC 32709 – Penalties Anyone harmed by odometer fraud can sue for three times actual damages or $10,000, whichever is greater.5Office of the Law Revision Counsel. 49 USC 32710 – Civil Actions by Private Persons
After You File
Processing takes a few weeks in most states. The recipient receives a new certificate of title in their name, and some states issue temporary registration at the counter so the vehicle can be driven while the permanent title and plates are prepared. When the new title arrives, verify the name, address, VIN, and lien status. Errors are far easier to correct now than when the recipient later tries to sell the vehicle.