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How to Gift a Car in Texas — Tax Exemption & Required Forms

Qualifying family vehicle gifts in Texas are exempt from sales/use tax. Form required: Form.

Texas Family Gift — Sales Tax Exempt

Texas exempts qualifying family vehicle gifts from motor vehicle sales tax. Instead of paying 6.25% sales tax on fair market value, qualifying family recipients pay a flat $10 gift tax. This is a significant savings for high-value vehicles.

TITLE FEE
$10 gift tax (flat)
SALES TAX
Exempt (family)
SMOG
Not required
GIFT FORM
Form

Qualifying Relationships for Tax-Exempt Gift in Texas

Spouse
Parent (including adoptive parent)
Child (including adopted child)
Sibling (including half-sibling)
Grandparent
Grandchild
Guardian

Texas gift tax exemption applies to immediate family transfers. The recipient pays $10 "gift tax" instead of 6.25% sales tax. Non-qualifying relationships are subject to standard 6.25% sales tax on the Standard Presumptive Value (SPV).

Required Documents for Texas Gift Transfer

✓
Texas Certificate of Title — signed by donor
✓
Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) — completed and signed by BOTH parties
✓
Application for Texas Title (Form 130-U) — completed by recipient
✓
Valid ID for both parties

Both the donor and recipient must sign Form 14-317. The recipient takes all documents to the county tax office and pays the $10 gift tax. No smog certificate required.

Key Form: Form 14-317

Form 14-317 (Affidavit of Motor Vehicle Gift Transfer)

Form 14-317 is the key Texas gift vehicle form. It must be signed by BOTH the donor (transferor) and recipient (transferee) in the presence of a notary or tax office official. Notarization is required in Texas for the gift affidavit.

Federal Gift Tax Considerations

Federal gift tax: vehicles valued over $18,000 (2024 annual exclusion) may require IRS Form 709. However, most family gifts of older or moderately valued vehicles fall under the exclusion. Consult a tax advisor for vehicles with fair market value over $18,000.

Frequently Asked Questions

Is a gift vehicle transfer tax-exempt in Texas?
Yes. Qualifying family gift transfers in Texas are exempt from sales/use tax. Texas exempts qualifying family vehicle gifts from motor vehicle sales tax. Instead of paying 6.25% sales tax on fair market value, qualifying family recipients pay a flat $10 gift tax. This is a significant savings for high-value vehicles.
What form is required for a gift vehicle transfer in Texas?
Texas requires Form 14-317 (Affidavit of Motor Vehicle Gift Transfer). Form 14-317 is the key Texas gift vehicle form. It must be signed by BOTH the donor (transferor) and recipient (transferee) in the presence of a notary or tax office official. Notarization is required in Texas for the gift affidavit.
Who qualifies as family for a tax-exempt vehicle gift in Texas?
In Texas, qualifying relationships include: Spouse, Parent (including adoptive parent), Child (including adopted child), Sibling (including half-sibling), Grandparent, Grandchild, Guardian. Texas gift tax exemption applies to immediate family transfers. The recipient pays $10 "gift tax" instead of 6.25% sales tax. Non-qualifying relationships are subject to standard 6.25% sales tax on the Standard Presumptive Value (SPV).
Is a smog certificate required for a gift vehicle transfer in Texas?
No. Texas does not require a smog certificate for gift vehicle transfers. No smog certificate is required for Texas gift vehicle transfers. Texas annual inspections are the responsibility of the registered owner, not required at point of transfer.
Texas Key Facts

Texas's $10 flat gift tax for qualifying family transfers is one of the most generous in the nation. The notarized Form 14-317 is mandatory — bring it completed to the county tax office. No smog required. Plates stay with the donor.

Gift a Car — Other States

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdaho

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