Gifting a Car in Texas: Tax & Transfer Guide
Sales tax exemptions, required forms, notarization rules, and federal gift tax basics for vehicle transfers in Texas.
Texas exempts vehicle gifts between family members from motor vehicle sales and use tax. A flat $10 gift tax applies instead of the standard 6.25% rate.
Gift Transfer at a Glance
Eligible Relationships in Texas
The following relationships typically qualify for the sales tax gift exemption in Texas:
Texas charges a flat $10 gift tax instead of the standard 6.25% sales tax — a significant savings on most vehicles. The recipient pays the $10 gift tax plus standard title and registration fees at the county tax office.
How to Gift a Car in Texas
Frequently Asked Questions
Is a car gift exempt from sales tax in Texas?
Texas exempts vehicle gifts between family members from motor vehicle sales and use tax. A flat $10 gift tax applies instead of the standard 6.25% rate.
What forms are needed to gift a car in Texas?
Texas requires Form 14-317. Affidavit of Motor Vehicle Gift Transfer (Form 14-317) must be completed and notarized. Both donor and recipient sign.
Do I need to pay federal gift tax when giving a car in Texas?
The federal gift tax annual exclusion is $18,000 per recipient (2024). Vehicles gifted above this value may require a federal gift tax return (Form 709), though actual tax is rarely owed due to the lifetime exemption.
Who qualifies for the family gift exemption in Texas?
In Texas, the eligible relationships for the gift transfer exemption include: Spouse, Parent / Stepparent, Child / Stepchild, Sibling, Grandparent, Grandchild, Guardian.
Does a car gift need to be notarized in Texas?
Form 14-317 must be notarized. Texas online notarization (RON) is available if in-person is not convenient.
Can I gift a car to a non-family member in Texas?
Gifts to non-family members in Texas are generally subject to standard sales tax based on the vehicle's fair market value — not the $0 gift price. The federal gift tax annual exclusion ($18,000 in 2024) still applies on the federal side.