Vehicle Gift Tax in Georgia: Who Pays, Who's Exempt, and What Forms You Need
Gifting a car in Georgia comes with specific tax rules that vary by relationship and vehicle value. Here is what the recipient owes, which family members qualify for exemptions, and exactly which forms to file.
Does Georgia Tax Vehicle Gifts?
Rules vary significantly by state — some states offer full exemptions for family gifts, others charge full sales tax on fair market value.
Always check with your state DMV or tax authority before completing the transfer.
Family Members Exempt in Georgia
- Varies by state — spouses are commonly exempt; parent-child transfers may or may not be exempt
Contact your state DMV to confirm whether your relationship qualifies for a gift tax exemption.
Required Forms
Most states require a title transfer form plus a gift affidavit or statement of transaction
Your state DMV will provide the correct forms. Some states require notarization of the gift affidavit.
How Fair Market Value Is Assessed
Most states use NADA or Kelley Blue Book retail value as the baseline fair market value for tax assessment.
If the vehicle has significant damage or high mileage, a professional appraisal can support a lower FMV.
Federal Gift Tax
The federal annual gift exclusion is $18,000 (2024). Gifts above this amount require IRS Form 709. Most vehicle gifts fall under this threshold.
Penalty for Misrepresentation
Georgia-Specific Facts for Vehicle Gift Tax
Georgia Vehicle transfer fees and requirements
In Georgia, the title transfer fee is $18 and registration costs $20 per year. Vehicle sales are subject to Title Ad Valorem Tax (TAVT) of 6.6% of fair market value. Georgia does not require notarization for private-party vehicle transfers. Emission testing is required in Georgia — verify the vehicle passes before completing the sale.
- TAVT replaced sales tax and annual ad valorem tax in 2013
- Emissions testing required in 13 metro Atlanta counties
- Title must be transferred within 30 days of purchase
Georgia sales tax on vehicle purchases
Georgia has a 6.6% state sales tax rate. 6.6% TAVT (Title Ad Valorem Tax) on fair market value. Private-party vehicle sales in Georgia are subject to sales tax. TAVT applies to all vehicle sales — replaces sales tax since 2013. The title transfer fee is $18.
Georgia bill of sale statistics
BillOfSaleNow has generated 3,204 bill of sale documents for Georgia transactions, with 86 generated this month alone. The most popular vehicle type is car.
More Georgia Vehicle Guides
- Car Loan Default in Georgia
- Car Loan Refinance in Georgia
- Car Recall Process in Georgia
- Car Title Transfer Fees in Georgia
- Car Totaled Insurance Payout in Georgia
- Cash for Cars / Junk in Georgia
Each guide is written specifically for Georgia laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
Do I owe sales tax when I gift a car to a family member in Georgia?
Rules vary significantly by state — some states offer full exemptions for family gifts, others charge full sales tax on fair market value. Always check with your state DMV or tax authority before completing the transfer.
Which family members are tax-exempt for vehicle gifts in Georgia?
Varies by state — spouses are commonly exempt; parent-child transfers may or may not be exempt. Contact your state DMV to confirm whether your relationship qualifies for a gift tax exemption.
What forms do I need to gift a car in Georgia?
Most states require a title transfer form plus a gift affidavit or statement of transaction. Your state DMV will provide the correct forms. Some states require notarization of the gift affidavit.
Does federal gift tax apply to vehicle gifts in Georgia?
The federal annual gift exclusion is $18,000 (2024). Gifts above this amount require IRS Form 709. Most vehicle gifts fall under this threshold.
What happens if I misrepresent a car sale as a gift in Georgia?
Misrepresenting a sale as a gift to avoid taxes is tax fraud in all states. Penalties include back taxes, interest, and potential criminal charges.
Gifting a Vehicle in Georgia?
Create a Georgia gift bill of sale that documents the transfer properly.
Generate Gift Bill of SaleSource: State DMV. Tax rules change — verify current requirements with your state DMV before completing any transfer.