Michigan Gifted Car Title Transfer
Transferring a gifted vehicle in Michigan 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 Michigan gift vehicle title transfer.
Tax Exempt?
Yes (family)
Notarization
Not required
Filing Deadline
15 days after
Michigan Gift Transfer Tax Status
Michigan exempts vehicle gifts between immediate family members from the 6% use tax. File TR-205 (Certification of Gift — Title Transfer) alongside the title application at a Michigan SOS office.
Michigan Secretary of State Official Instructions →Qualifying Relationships for Michigan Gift Tax Exemption
The following relationships qualify:
Spouse, parent or stepparent, child or stepchild, grandparent, grandchild, sibling or stepsibling
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 Michigan
You will need:
TR-205 (Gift Certification) + signed title + SOS title application
Michigan TR-205 requires both the donor and recipient to sign. This form is available at any Michigan SOS office. Without TR-205, the SOS will assess use tax based on the vehicle's retail value.
Step-by-Step: Gift Vehicle Title Transfer in Michigan
- 1
Confirm the relationship qualifies
In Michigan, the gift exemption applies to: Spouse, parent or stepparent, child or stepchild, grandparent, grandchild, sibling or stepsibling. 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 Michigan.
- 4
Gather all required forms
TR-205 (Gift Certification) + signed title + SOS title application
- 5
Visit the Michigan 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 Michigan Secretary of State.
Frequently Asked Questions
Is a gifted car tax-exempt in Michigan?
Yes — Michigan exempts close family vehicle gifts from sales/use tax. Michigan exempts vehicle gifts between immediate family members from the 6% use tax. File TR-205 (Certification of Gift — Title Transfer) alongside the title application at a Michigan SOS office.
What forms do I need for a gift car title transfer in Michigan?
TR-205 (Gift Certification) + signed title + SOS title application
Which relationships qualify for the gift exemption in Michigan?
Spouse, parent or stepparent, child or stepchild, grandparent, grandchild, sibling or stepsibling
Is notarization required in Michigan for a gifted vehicle title transfer?
No — Michigan 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 15 days after receiving the gift vehicle. Late transfers may result in penalties.
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