Gifting a Car in PA: Title Transfer, Affidavit, and Costs

Gifting a car in PA takes three things: a signed and notarized title, a completed Affidavit of Gift (Form MV-13ST), and the $72 title fee. Do the paperwork right and Pennsylvania waives its 6% sales tax on the transfer, whether you’re giving the car to a family member, a friend, or anyone else. Skip a step, and the Department of Revenue can review the transaction and charge tax on the vehicle’s fair market value.

Clear Any Lien Before You Start

If there’s still a loan on the car, you can’t gift it. Under Pennsylvania’s Electronic Lien and Title program, no paper title is printed at all until the lienholder releases the lien electronically.1Pennsylvania Department of Transportation. Pennsylvania Electronic Lien and Title ELT Program Fact Sheet Pay off the balance first, wait for the lender to release the lien and issue a clean title, and only then move on to the transfer. If you’re the one receiving the car, ask to see the physical title and confirm no lien is listed before you invest time in anything else.

Signing Over the Title

The transfer happens on the vehicle’s existing Pennsylvania title. The giver fills in the recipient’s name and address on the back, along with the current odometer reading. Both parties sign in the presence of a notary public, who verifies IDs and notarizes the signatures.2Commonwealth of Pennsylvania. Buying or Selling a Vehicle Bring valid photo ID.

Federal law requires an odometer disclosure on most transfers. Vehicles from model year 2010 or earlier are exempt if the transfer happens at least 10 years after the start of that model year; vehicles from 2011 onward carry a 20-year exemption window.3eCFR. Title 49 Part 580 – Odometer Disclosure Requirements Outside those windows, the mileage on the title must be accurate. Misrepresenting it is a federal offense.

Once the title is signed and notarized, the recipient takes it to a PennDOT-authorized agent (often a notary or tag service) along with the MV-13ST and a title application. The agent submits everything to PennDOT and a new title is issued in the recipient’s name.

The Affidavit of Gift and the Sales Tax Exemption

Form MV-13ST is what tells PennDOT and the Department of Revenue that no money changed hands. Both the giver and recipient complete it, sign it in front of a notary, and submit it with the title application.4pa.gov. MV-13ST Affidavit of Gift The affidavit is what triggers Exemption 13, which waives Pennsylvania’s 6% sales and use tax on the transfer. On a $15,000 car, that’s $900 saved.

The exemption is not limited to family. The form itself lists “friend/friend” as an acceptable relationship.4pa.gov. MV-13ST Affidavit of Gift What matters is that no money, goods, or services were exchanged. If the transfer is actually payment for something, the exemption does not apply, and falsifying the affidavit can lead to criminal prosecution and a one-year license revocation.

There’s one wrinkle that catches people off guard. The exemption requires proof that Pennsylvania sales tax was paid on the vehicle at some point in its history. The giver typically provides an affidavit stating they paid sales tax when they bought it, together with a copy of the canceled check and the original bill of sale, or a notarized statement from the dealership showing the tax paid.5Commonwealth of Pennsylvania. Motor Vehicle Understated Value Program Without that proof, the recipient may have to pay use tax on the car’s current fair market value to register it.

The Department of Revenue notes that properly completing the MV-13ST “usually prevents the transaction from being referred to the Department of Revenue for review.”5Commonwealth of Pennsylvania. Motor Vehicle Understated Value Program Incomplete or suspicious submissions get flagged. Fill in every field.

What It Costs

The sales tax is waived, but the recipient still pays several fees:

Between the title, registration, and notarization of both the title and the MV-13ST, a typical gift transfer runs roughly $130 to $140. Many PennDOT-authorized agents charge a service fee on top of the state fees, so ask about that before you sit down.

What the Giver Does Next

Your job isn’t finished when you hand over the signed title. In Pennsylvania, plates belong to the owner, not the vehicle. Once the transfer is done, remove your license plate.2Commonwealth of Pennsylvania. Buying or Selling a Vehicle You can transfer it to another vehicle you own or mail it back to PennDOT’s Return Tag Unit in Harrisburg.

Call your insurer and remove the vehicle from your policy. Pennsylvania has no standalone “release of liability” form. What severs your legal connection to the car is the combination of completing the title transfer and dealing with the plate. Until the plate is off and the insurance is canceled, you could still face liability for what happens with the vehicle.

What the Recipient Does Next

Pennsylvania requires every registered vehicle to carry liability insurance. The minimums are $15,000 for injury or death of one person, $30,000 for injury or death of more than one person, and $5,000 for property damage.9Commonwealth of Pennsylvania. Insurance Overview – Driver and Vehicle Services The policy has to be in place before the car is driven. Driving uninsured brings a minimum $300 fine, a three-month suspension of both registration and driver’s license, and restoration fees.10Commonwealth of Pennsylvania. Insurance Law Overview and Frequently Asked Questions If you already insure another vehicle, adding the gifted car is usually a phone call.

A newly registered vehicle must pass a safety inspection within 10 days.11Commonwealth of Pennsylvania. Transfer Vehicle Registration from Another State Depending on the county, an emissions inspection may also apply. This is easy to overlook when the car is coming from family, but registration can be suspended if the inspection isn’t completed on time, and any repairs needed to pass come out of your pocket.

Federal Gift Tax

Most car gifts don’t trigger federal gift tax. For 2026, the IRS annual gift tax exclusion is $19,000 per recipient.12Internal Revenue Service. What’s New – Estate and Gift Tax If the car’s fair market value is $19,000 or less, the giver owes no federal gift tax and doesn’t file a gift tax return.

If the car is worth more than $19,000, the giver must file IRS Form 709 to report the gift, though that doesn’t necessarily mean tax is owed. The amount over $19,000 counts against the giver’s lifetime exemption, which for 2026 is $15,000,000.12Internal Revenue Service. What’s New – Estate and Gift Tax Almost no one actually owes federal gift tax on a car, but failing to file Form 709 when required is still a reporting violation.13Internal Revenue Service. Instructions for Form 709

One thing gifting a car to an individual does not do: generate an income tax deduction. Only gifts to qualified charities are deductible.14Internal Revenue Service. Frequently Asked Questions on Gift Taxes

Gifting a Car to a Minor

Pennsylvania law does not set a minimum age for owning or registering a vehicle. PennDOT’s own FAQ states plainly: “Pennsylvania law does not dictate a minimum or maximum age for owning/registering a vehicle.”15Commonwealth of Pennsylvania. Titling and Registration Frequently Asked Questions A 16-year-old with a learner’s permit can technically hold a title.

The obstacle is insurance. PennDOT recommends checking with your insurer, because insurance companies apply their own age restrictions on who can be a named insured or policyholder. Some will insure a minor as the vehicle owner; others require a parent or guardian to hold the policy. Sort this out before you sign the title, since a vehicle can’t be registered without proof of insurance. If the insurer won’t cover a minor as titleholder, the practical workaround is to title the car in a parent’s name and list the minor as a driver.

If the Car Is Coming From an Estate

A transfer after the owner’s death is a different process, not a gift. If the vehicle was jointly titled, a surviving spouse can have a corrected title issued in their name alone at no title fee, by submitting the original title (without filling in the back) with supporting documentation.16Pennsylvania Department of Transportation. Vehicle Transfer After Death of Owner If a will leaves the vehicle to a spouse or child and the will isn’t being probated, Form MV-39 can be used with a copy of the will attached.17Pennsylvania Government. Notification of Assignment/Correction of Vehicle Title Upon Death of Owner If the vehicle goes to anyone other than a spouse, child, or parent, the will has to be probated and an executor handles the transfer using a Short Certificate from the Register of Wills.