Car Title Transfer Between Family Members in Texas
How to transfer a car title to a family member in Texas tax-free — qualifying relationships, required affidavits, title fees, and the complete step-by-step process.
Texas exempts qualifying family member vehicle gifts from motor vehicle sales tax under Texas Tax Code §152.025. The transfer must be a gift — no money can change hands. The Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) is required.
Required Documents in Texas
Texas's $10 gift tax (vs. 6.25% sales tax) makes family gifting very attractive — a $20,000 vehicle saves $1,240 in taxes. The Form 14-317 is critical. Both donor and recipient must be present at the county tax office to complete the transfer, or the form must be notarized if done separately.
Frequently Asked Questions
Which family relationships are exempt from sales tax on car transfers in Texas?
Spouse, Parent to child, Child to parent, Grandparent to grandchild, Grandchild to grandparent, Sibling, Guardian to ward. Texas exempts qualifying family member vehicle gifts from motor vehicle sales tax under Texas Tax Code §152.025. The transfer must be a gift — no money can change hands. The Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) is required.
Do I need a gift affidavit to transfer a car to a family member in Texas?
Yes. Texas requires Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) to claim the family gift exemption. Both the donor and recipient must sign the affidavit. The $10 gift tax applies instead of the 6.25% sales tax — significant savings on most vehicles.
How much is the title fee for a family car transfer in Texas?
$28–$33. Standard Texas title fee applies ($28 most counties, $33 in high-population counties). The gift exemption covers sales tax, not the title fee.
Does a car gift trigger gift tax in Texas?
No state gift tax. Texas has no state gift tax. Federal gift tax rules apply but consumer vehicle gifts rarely exceed the annual exclusion.
What documents do I need to transfer a car title to a family member in Texas?
Required documents: Form 14-317 (Gift Transfer Affidavit) — both parties sign, Signed title assignment, Application for Texas Title (Form 130-U), Odometer disclosure statement, Proof of insurance. Texas's $10 gift tax (vs. 6.25% sales tax) makes family gifting very attractive — a $20,000 vehicle saves $1,240 in taxes. The Form 14-317 is critical. Both donor and recipient must be present at the county tax office to complete the transfer, or the form must be notarized if done separately.
Can I sell a car to a family member for $1 to avoid sales tax in Texas?
In most states, selling for $1 does not qualify as a gift — the state will assess tax on the fair market value. To qualify for the family gift exemption in Texas, the transfer must be documented as a gift with no consideration paid. Use the proper gift affidavit and do not list any dollar amount as the sale price.