Texas Gifted Car Title Transfer
Transferring a gifted vehicle in Texas 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 Texas gift vehicle title transfer.
Tax Exempt?
Yes (family)
Notarization
Required
Filing Deadline
30 days from
Texas Gift Transfer Tax Status
Texas exempts motor vehicle gifts between close family members from the 6.25% motor vehicle sales tax. Instead, the recipient pays a $10 gift tax. Use Form 14-317 (Affidavit of Motor Vehicle Gift Transfer).
Texas DMV (TxDMV) Official Instructions →Qualifying Relationships for Texas 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 Texas
You will need:
Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) + signed title + proof of relationship
Form 14-317 must be notarized by both parties. If the vehicle was most recently titled in another state, additional documentation may be required. The $10 gift tax is paid at the county tax office.
Step-by-Step: Gift Vehicle Title Transfer in Texas
- 1
Confirm the relationship qualifies
In Texas, 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 (notarize before signing)
Both donor and recipient must sign the title in front of a notary. Visit a bank, UPS Store, or county office for notarization.
- 4
Gather all required forms
Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) + signed title + proof of relationship
- 5
Visit the Texas DMV (TxDMV)
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 Texas DMV (TxDMV).
Frequently Asked Questions
Is a gifted car tax-exempt in Texas?
Yes — Texas exempts close family vehicle gifts from sales/use tax. Texas exempts motor vehicle gifts between close family members from the 6.25% motor vehicle sales tax. Instead, the recipient pays a $10 gift tax. Use Form 14-317 (Affidavit of Motor Vehicle Gift Transfer).
What forms do I need for a gift car title transfer in Texas?
Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) + signed title + proof of relationship
Which relationships qualify for the gift exemption in Texas?
Spouse, parent or stepparent, child or stepchild, grandparent, grandchild, sibling
Is notarization required in Texas for a gifted vehicle title transfer?
Yes — Texas requires notarization on the title assignment and/or gift affidavit.
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 from gift date. Late transfers may result in penalties.
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