Car Sales Tax Exemption in Florida
Which vehicle transfers are exempt from Florida sales tax — family gifts, inheritance, trade-ins, nonprofit use, and military status.
Current Florida Vehicle Sales Tax Rate
6% state + local surtax (county varies)
Exemption Summary
| Exemption Type | Florida |
|---|---|
| Family Gift Transfer | ✓ Exempt |
| Inherited Vehicle | ✓ Exempt |
| Trade-In Credit | ✓ Credit Available |
| Nonprofit / Charity | ✓ Exempt (501(c)(3)) |
| Military Exemption | ✓ Partial Exemption |
Exemption Details
Family Gift Transfer
Florida exempts vehicle transfers between spouses from sales tax. Transfers to other family members may qualify under the "gift" exclusion only if no consideration is exchanged.
Inherited Vehicle
Florida exempts vehicles transferred as a result of a will, intestate succession, or living trust from sales tax.
Trade-In Credit
Florida dealers apply a trade-in credit — sales tax is assessed on the net purchase price after subtracting the trade-in value. Private-party exchanges do not qualify.
Military Exemption
Florida active-duty military members who are legal residents of another state may claim an exemption from Florida sales tax on vehicle purchases.
How to Document an Exempt Transfer
- ✓Sign the title with the relationship or reason clearly noted (e.g., "GIFT — Mother to Son")
- ✓Include a bill of sale showing $0 consideration for gifts, or inheritance documentation
- ✓Complete any state-required exemption forms (e.g., Texas Form 14-317 Gift Affidavit)
- ✓Bring estate documents (will, letters testamentary) for inherited vehicle transfers
- ✓Keep copies of all documents — the exemption can be audited years later
Florida Note
Florida's gift exemption requires that absolutely no consideration (money, trade, or other value) changes hands. Even a $1 payment can invalidate the exemption.
Frequently Asked Questions
- Can I give my car to a family member without paying sales tax in Florida?
- Yes. Florida exempts vehicle transfers between spouses from sales tax. Transfers to other family members may qualify under the "gift" exclusion only if no consideration is exchanged.
- Is an inherited car taxable in Florida?
- No. Florida exempts vehicles transferred as a result of a will, intestate succession, or living trust from sales tax.
- Does Florida offer a trade-in credit for car purchases?
- Yes. Florida dealers apply a trade-in credit — sales tax is assessed on the net purchase price after subtracting the trade-in value. Private-party exchanges do not qualify.
- Is there a military car sales tax exemption in Florida?
- Yes. Florida active-duty military members who are legal residents of another state may claim an exemption from Florida sales tax on vehicle purchases.
- How do I document a tax-exempt vehicle transfer?
- You need: (1) the signed title clearly indicating the relationship or reason for exemption, (2) a bill of sale noting "$0 consideration" or "GIFT" for gift transfers, (3) any state-specific exemption form required by the revenue department or DMV, and (4) estate documentation for inherited vehicles.
- What is the sales tax rate on car purchases in Florida?
- Florida sales/use tax on vehicle purchases is 6% state + local surtax (county varies). This rate applies to the taxable purchase price after any applicable exemptions or trade-in credits.
Document the Transfer Properly
A properly completed bill of sale — including $0 consideration or exemption reason — is essential documentation for any tax-exempt vehicle transfer.
Generate Florida Bill of Sale