Illinois Gifted Car Title Transfer
Transferring a gifted vehicle in Illinois involves specific forms, relationship requirements, and tax exemption rules. Get it wrong and the recipient could owe hundreds in unexpected sales tax. This guide covers the exact steps, required documents, and qualifying relationships for a Illinois gift vehicle title transfer.
Tax Exempt?
Yes (family)
Notarization
Not required
Filing Deadline
30 days after
Illinois Gift Transfer Tax Status
Illinois exempts vehicle gifts between immediate family members from sales tax. File RUT-50 (Private Party Vehicle Tax Transaction) with $0 sale price and note the gift relationship. Include an affidavit of gift.
Illinois Secretary of State Official Instructions →Qualifying Relationships for Illinois Gift Tax Exemption
The following relationships qualify:
Spouse, parent or stepparent, child or stepchild, grandparent, grandchild, sibling
Relationships outside this list (aunts, uncles, cousins, friends, coworkers) do not qualify for the tax exemption. Standard sales tax on fair market value would apply.
Required Documents in Illinois
You will need:
RUT-50 + affidavit of gift + signed title
Illinois requires RUT-50 even for gift transfers. Enter $0 as the purchase price and attach an affidavit stating the relationship and that no consideration was exchanged. Failure to file RUT-50 can result in tax penalties.
Step-by-Step: Gift Vehicle Title Transfer in Illinois
- 1
Confirm the relationship qualifies
In Illinois, the gift exemption applies to: Spouse, parent or stepparent, child or stepchild, grandparent, grandchild, sibling. Outside this list, standard tax applies.
- 2
Prepare a gift vehicle affidavit
The affidavit must state: donor and recipient names, relationship, vehicle VIN and description, date of gift, and declaration that no money changed hands.
- 3
Sign the title
The donor signs the back of the title, entering the recipient as new owner and $0 as sale price. No notary required in Illinois.
- 4
Gather all required forms
RUT-50 + affidavit of gift + signed title
- 5
Visit the Illinois Secretary of State
Bring all documents. The recipient pays the title transfer fee and any applicable registration costs. Gift tax exemption applies if the relationship qualifies.
- 6
Donor: update insurance and file transfer notification
Donor notifies their insurer and removes the vehicle from their policy. File any required seller/transfer notification with Illinois Secretary of State.
Frequently Asked Questions
Is a gifted car tax-exempt in Illinois?
Yes — Illinois exempts close family vehicle gifts from sales/use tax. Illinois exempts vehicle gifts between immediate family members from sales tax. File RUT-50 (Private Party Vehicle Tax Transaction) with $0 sale price and note the gift relationship. Include an affidavit of gift.
What forms do I need for a gift car title transfer in Illinois?
RUT-50 + affidavit of gift + signed title
Which relationships qualify for the gift exemption in Illinois?
Spouse, parent or stepparent, child or stepchild, grandparent, grandchild, sibling
Is notarization required in Illinois for a gifted vehicle title transfer?
No — Illinois does not require notarization for gift vehicle title transfers.
What if the vehicle still has a loan on it?
You cannot gift a vehicle with an active lien without the lender's consent. The donor must pay off the loan and obtain a lien release letter from the lender before transferring the title. The lien release is presented at the DMV alongside the other gift transfer documents.
How long does the recipient have to transfer title?
The recipient must complete the title transfer within 30 days after the gift. Late transfers may result in penalties.
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