When gifting a car, the title needs seven things filled in: your full legal name and address as the current owner, the recipient’s full legal name and address, the date you’re handing over the vehicle, the exact odometer reading, the word “Gift” or “$0” in the purchase price field, and both of your signatures in the designated spots. Everything else about a gift transfer — the affidavits, the DMV forms, the tax questions — flows from getting those fields right on the title itself.
The Fields You Fill In
The title is the legal document that proves ownership, and it has dedicated spaces for each piece of a transfer. Work through them in order and print legibly in black ink.
- Seller or transferor name and address. Your full legal name exactly as it appears on the current title, with your current mailing address.
- Buyer or transferee name and address. The recipient’s full legal name and mailing address. Check the spelling against their driver’s license, because a mismatch at the DMV counter will stop the transfer.
- Purchase price. Write “Gift,” “$0,” or “zero,” depending on what the form accepts in your state.
- Date of transfer. The actual calendar date you hand the car over.
- Odometer reading. The mileage exactly as shown on the dashboard, not rounded.
- Signatures. Both of you sign in the areas marked for seller and buyer.
Why the Price Field Matters
The purchase price line is the single most consequential field on the title when you’re gifting a car. Writing “Gift” or “$0” establishes on the face of the document that no money changed hands, and that’s what qualifies the recipient for a sales tax exemption in states that offer one. Many states waive sales tax entirely on a bona fide gift when the title and a gift affidavit both say so; some limit the exemption to immediate family (spouses, parents, children, grandparents, siblings); a few offer no gift exemption at all and will charge tax based on the car’s fair market value regardless of what you wrote.
If you leave the price blank, or write a nominal figure like “$1” out of habit, you can trigger tax the recipient didn’t owe. Use the exact wording your state’s title form prompts for.
The Odometer Reading
Federal law requires anyone transferring a motor vehicle to disclose the cumulative mileage shown on the odometer in writing, or to state that the actual mileage is unknown if the odometer isn’t accurate.1Office of the Law Revision Counsel. 49 USC 32705 – Disclosure Requirements on Transfer of Motor Vehicles Record the number exactly as it appears. Don’t round up or down, and don’t estimate.
If the odometer has rolled over, been replaced, or is broken, don’t guess the real mileage. Check the “actual mileage unknown” box or write that phrase in the odometer area. Guessing when you don’t know is a federal disclosure violation; admitting you don’t know is not.
Some state titles print the odometer disclosure directly on the title. Others use a separate form. If your state uses a separate form, you still fill in the mileage on the title and complete the form alongside it.
Signatures and Notarization
Both the donor and the recipient sign the title in the spaces marked for seller and buyer. Some states require those signatures to be notarized, meaning you sign in the physical presence of a notary who stamps the document. Check your state’s DMV website before you sign anything, because signing a title that was supposed to be notarized means starting over with a duplicate.
Don’t Cross Anything Out
If you make a mistake while filling out the title, don’t scratch through it, write over it, or use correction fluid. Most states will reject an altered title on sight and require you to apply for a duplicate before the transfer can proceed. That costs a fee and adds weeks to the process. Slow down on the first pass, and if something does go wrong, order the duplicate rather than trying to patch the error.
The Title Has to Be Lien-Free First
You can’t gift a car that still has a loan on it. The lender holds a legal interest in the vehicle until the debt is paid, and the title will list the lienholder’s name. Before you fill in anything on the title, the loan has to be paid off and the lien released.
Once the loan is satisfied, the lender issues a lien release. In most states the lender notifies the DMV directly and a clean title is mailed to you. In the states where you hold the physical title during the loan, you submit the release to the DMV yourself and request an updated title. Either way, allow two to six weeks before you can start the gift transfer.
Documents That Go With the Title
The title is the main document, but it rarely travels alone. Most states require a short stack of supporting paperwork for the DMV to process a gift transfer.
Gift Affidavit
Nearly every state requires a signed statement confirming the vehicle is being transferred as a gift with no money exchanged. Some states call it a Gift Affidavit, others a Statement of Facts, others something else. Download the correct form from your state’s DMV website. Many states require both donor and recipient to sign, and some require notarization. This form, together with the “$0” or “Gift” entry on the title, is what unlocks the sales tax exemption in states that offer one.
Bill of Sale
Even with no money changing hands, many states want a bill of sale listing the vehicle’s year, make, model, and VIN; both parties’ names and addresses; the transfer date; and a sale price of $0 with a note that the transfer is a gift. It creates a paper trail showing the donor gave up ownership and the recipient took it on a specific date.
Separate Odometer Disclosure
If your state’s title doesn’t include an odometer disclosure section, you’ll complete a standalone federal odometer disclosure form.1Office of the Law Revision Counsel. 49 USC 32705 – Disclosure Requirements on Transfer of Motor Vehicles Same rule applies: exact mileage, or “actual mileage unknown.”
Emissions or Safety Inspection
Some states require a current emissions test or safety inspection before they will process any title transfer. Requirements depend on the vehicle’s age, fuel type, and the state. Confirm what your state requires before the recipient makes a DMV trip.
After You Sign: File a Release of Liability
Signing the title over and walking away is the most common mistake donors make. Until your state’s DMV knows you no longer own the car, you can be held responsible for parking tickets, red-light camera violations, toll charges, and liability from an accident the recipient causes.
Most states have a Notice of Transfer or Release of Liability form that severs your legal connection to the vehicle. Some states accept it online, others require mail or an in-person submission. File it the same day you hand over the car. Some states give you as few as five calendar days to report the transfer. If you later receive a registration renewal notice for the car you gave away, the release didn’t go through and you need to submit it again.
Once the transfer is complete and the release is on file, contact your auto insurer to remove the vehicle from your policy. Keep the bill of sale as proof the car is no longer yours. Don’t cancel coverage before the transfer finalizes, because if anything happens while your name is still on the title you want the policy in place.
A Note on Taxes
Fair market value matters even when the price on the title is $0. In states that don’t fully exempt gifted vehicles, the DMV may assess sales tax on the car’s value rather than the written price. For federal purposes, fair market value is the retail price a member of the general public would pay for a vehicle of the same make, model, year, and condition, not the trade-in figure a dealer would offer.2eCFR. 26 CFR 25.2512-1 – Valuation of Property; In General Kelley Blue Book or Edmunds “private party” value works for both purposes; save a copy of the valuation.
The federal annual gift tax exclusion for 2026 is $19,000 per recipient.3Internal Revenue Service. Frequently Asked Questions on Gift Taxes Most gifted cars fall below that line, meaning no federal filing is required. If the car’s value is higher, the donor files IRS Form 709 the following April to report the gift, but filing the return rarely means owing tax.