How to Transfer a Car Title to a Family Member

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Transferring a car title usually requires the vehicle title itself and a title application, the parties' addresses, signatures from the previous and new owners, and details on the vehicle and its value. These documents look different from state to state, but the information they require is generally the same. There's more to it than that, which we'll cover in this story.

Let's examine a common scenario. Your teen has reached driving age and needs a car. You want to give your teen your current car, which frees you up to buy a new one later. You're not really selling it to them, so do the same rules apply?

A car title transfer to a family member doesn’t have to be difficult, scary or even expensive. We’re going to help you through it, and we’re going to help you do so without overpaying on vehicle taxes or messing something up and having to make multiple trips to the local Department of Motor Vehicles.

What is a vehicle title?

For those unfamiliar with the terminology, a vehicle’s title is your state’s official record of who owns the vehicle. It will include information such as the vehicle’s year, make and model, as well as its vehicle identification number (VIN). It will also show the name and address of the registered owner, and if the vehicle has been financed, it will show the name and address of the lienholder (the financial institution that loaned the money to buy the vehicle). Essentially, transferring a title means changing the record of the official owner of a vehicle with the state. 

How to transfer a title

In addition to the car's title and/or title application, you'll need the following pieces of information to proceed with a title transfer:

• Vehicle information such as the year, make, model, VIN, and type of vehicle

• Identification details including your full name, driver's license number and expiration date, and address. The same information will be needed for anyone you’d like to have ownership of the vehicle (e.g., a spouse, a parent, a child, etc.).

• Lienholder information if the vehicle is financed

• The date the purchase was made and the date the vehicle was first operated by you in the state

• An estimated vehicle value or the sale price. You can use the Edmunds appraisal tool to get a free estimate

• Details regarding whether the vehicle came in from another state

• Signatures from both parties

Make sure to read the fine print on your state’s form. Some states have very specific requirements for how the form is to be filled out, and it will sometimes tell you what other documents you might need to submit your application successfully. Make sure to use only black or blue ink, and avoid crossing out any mistakes, as some states will not process a title incorrectly marked up.

The most important document to submit is a signed copy of the vehicle’s title. This lets the state know that the car’s current registered owner has released his or her interest in it, to whom, and at what indicated mileage. There are exceptions to this rule, though. If you live in one of the eight following states, you must sign the title in the presence of a notary public or it becomes invalid.

• Arizona

• Kentucky

• Louisiana

• Montana

• North Carolina

• Ohio

• Oklahoma

• Pennsylvania

Not every state requires it, but getting a bill of sale is a good idea, even if the vehicle is a gift to or from a relative. It’s further proof that the vehicle was a gift and that the previous owner signed it.

Are there any fees or taxes for transferring a title?

As with most things involving official records with your state of residence, changing a vehicle’s title comes with some taxes and fees. These fees can vary by state and by the value of the vehicle, which is where most people’s confusion comes in. When you transfer a vehicle title, the state often views it as if you’re selling it (because that’s usually the case) and assigns sales tax based on the sale price of the vehicle that the new owner would need to pay as part of the transfer. There are five states, however, that don’t have sales tax, so this wouldn't apply. These are Alaska, Delaware, Montana, New Hampshire and Oregon.

The states also understand that sometimes people give cars to a family member or friend and have included a provision for this scenario in the title transfer process called “gift value.” It allows you to enter the approximate value of the car as if it had been sold instead of given, as well as the relationship between the person giving the vehicle and the giftee. People seeking to minimize the amount of tax and fees that their relative pays will sometimes put down a super low number, but ultimately it is up to your DMV to decide if that’s a reasonable figure. 

Registration fees are also generally due when a vehicle changes hands. These, too, vary from state to state and are, in most cases, based on the value of the vehicle, the vehicle type, the county and city the vehicle is registered, etc.

Does your vehicle even need a title?

If you own a vehicle, you will need a title in 41 of 50 U.S. states. However, some states do things a little differently, usually for a vehicle over a certain age, and will no longer issue a title for that vehicle even if it's being legally transferred to its next owner. 

• Alabama: 1979 and older

• Connecticut: 21 years and older

• Georgia: 1985 and older

• Maine: 1994 and older

• Massachusetts: 1989 and older

• New Hampshire: 16 years old and older

• New York: 1972 and older

• Rhode Island: 2000 and older

• Vermont: 16 years old and older

What if your car doesn’t have a title or it was lost?

A vehicle with a title that’s been lost is a common occurrence. Most states have a form that allows the current owner to order a duplicate title. It doesn’t cost much, and it can take anywhere from a few weeks to a few months, but it’s usually a relatively painless process. If the previous owner of the vehicle is unavailable or deceased, there are ways to get around that, too, but they’re highly state-specific and much more complicated. Read "Avoiding DMV Car-Buying and Car-Selling Hassles" for more information.