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Pennsylvania Gifted Car Title Transfer

Transferring a gifted vehicle in Pennsylvania 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 Pennsylvania gift vehicle title transfer.

Tax Exempt?

Yes (family)

Notarization

Not required

Filing Deadline

20 days after

Pennsylvania Gift Transfer Tax Status

Pennsylvania exempts vehicle gifts between close family members from the 6% sales tax. File MV-1 (Application for Certificate of Title) noting the gift. Include REV-1220 (Commonwealth of Pennsylvania Sales Tax Exemption Certificate) if needed.

PennDOT Official Instructions →

Qualifying Relationships for Pennsylvania Gift Tax Exemption

The following relationships qualify:

Spouse, parent, child, 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 Pennsylvania

You will need:

MV-1 + gift affidavit + signed title

Pennsylvania PennDOT requires the gift relationship be stated on the title application. Any ambiguity about whether consideration was exchanged can trigger full sales tax assessment.

Step-by-Step: Gift Vehicle Title Transfer in Pennsylvania

  1. 1

    Confirm the relationship qualifies

    In Pennsylvania, the gift exemption applies to: Spouse, parent, child, grandparent, grandchild, sibling. Outside this list, standard tax applies.

  2. 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. 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 Pennsylvania.

  4. 4

    Gather all required forms

    MV-1 + gift affidavit + signed title

  5. 5

    Visit the PennDOT

    Bring all documents. The recipient pays the title transfer fee and any applicable registration costs. Gift tax exemption applies if the relationship qualifies.

  6. 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 PennDOT.

Frequently Asked Questions

Is a gifted car tax-exempt in Pennsylvania?

Yes — Pennsylvania exempts close family vehicle gifts from sales/use tax. Pennsylvania exempts vehicle gifts between close family members from the 6% sales tax. File MV-1 (Application for Certificate of Title) noting the gift. Include REV-1220 (Commonwealth of Pennsylvania Sales Tax Exemption Certificate) if needed.

What forms do I need for a gift car title transfer in Pennsylvania?

MV-1 + gift affidavit + signed title

Which relationships qualify for the gift exemption in Pennsylvania?

Spouse, parent, child, grandparent, grandchild, sibling

Is notarization required in Pennsylvania for a gifted vehicle title transfer?

No — Pennsylvania 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 20 days after the gift. Late transfers may result in penalties.

Need a Gift Vehicle Affidavit for Pennsylvania?

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