How To Transfer A Car Title To A Family Member (2026)

What Is a Car Title and Why Is It Important?

Before learning how to transfer a car title to a family member, it helps to know why you should in the first place. A car title represents who legally owns a vehicle. When you transfer the title, you officially change the car’s ownership.

This is important because, if the new owner gets into a car accident, the title change would protect you from being liable.

What to Do Before You Transfer a Car Title

To prepare for the transfer, ensure there are no liens on the vehicle or that you have a lien release. You should also check that the VIN matches.

Keep in mind that federal law requires an accurate, signed odometer disclosure, even for gifts. This requirement applies to the following vehicles:

• Model years 2011 and later for 20 years after January 1 of its model year
• Model years 2010 and earlier for 10 years after its model year

This disclosure usually appears on the title.

How to Transfer a Car Title: Sale vs. Gift

How to transfer a car title to a family member may differ in your specific state, but generally, you will need to sign the title, complete a bill of sale for the car with the price of the vehicle and file a sales tax exemption form, if applicable. While both documents are often used together, the title legally transfers ownership, whereas the bill of sale simply serves as a record of the transaction.

Whether the recipient can be exempted from paying taxes will depend on the state. In fact, this issue has the greatest variation from state to state. In Massachusetts, for example, parents, children, spouses and siblings are exempted and must fill out the appropriate sales tax exemption form.

In contrast, Texas exempts taxes on gifts from parents, in-laws, grandparents and grandchildren. California expands the list by including spouses, parents, grandparents, children, grandchildren and siblings. If you received a vehicle as a gift, make sure to check your state’s list of qualifying grantors to find out whether it’s tax-exempt.

If you’re gifting the vehicle, the car title will note “Gift” written where the sale price goes. In most states, you will not need a bill of sale. This is a difference between a bill of sale vs. title. Instead, you may need a gift affidavit swearing that the vehicle was transferred for no compensation. These states employ this process:

• Texas uses Form 14-317, signed by both parties and notarized.
• Massachusetts uses Form MVU-26, signed by the prior and new owners.
• California uses a Statement of Facts (REG 256), signed by the recipient and filed with the title.

The receiving party will need to take it to the DMV to register the vehicle under their name.

Fees and Taxes for Transferring a Car Title to a Family Member

Gift affidavits, statements of facts and other documents submitted for gift vehicles are often used to verify that the recipient owes no sales tax. However, some states still charge a gift tax or transfer fee.

California, for example, grants a use tax exemption, but charges a title transfer fee, a smog transfer fee and registration fees. The fees will vary by state and could range broadly.

In Texas, for example, you are exempt from the 6.25% sales tax. Instead, you pay a flat $10 gift tax. The difference is significant, since the sales tax on a $15,000 used car is roughly $938. Also, you can pay $28–$33 for a title transfer. Texas has a 30-day filing deadline and may assess additional penalties for late filings.

Does Gifting a Car Trigger Federal Gift Tax?

Gifting a car is a taxable event under the federal gift tax. However, the annual exclusion is $19,000 per recipient in 2026, so most used vehicle gifts will be fully covered. If the vehicle’s value exceeds $19,000, the giver, not the recipient, files IRS Form 709.

For most people, the excess value simply reduces the giver’s lifetime gift exemption rather than resulting in taxes owed.

How to Transfer a Car Title to a Family Member in Another State

When transferring a car title to someone in another state, you may need to get a vehicle emissions test to register the car. You may also need to get a VIN inspection. You can then sign the title and the other party can register the vehicle at their DMV.

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