To transfer a car to a close family member in Minnesota without paying the 6.875 percent motor vehicle excise tax, use the Minnesota motor vehicle gift affidavit (Form PS2000). The recipient submits it along with the signed title to any deputy registrar, and the state treats the transfer as a gift rather than a sale. The exemption only works if the donor and recipient fit one of three specific family relationships and no money or other value changes hands.
Who Qualifies
Minn. Stat. § 297B.01, subd. 16(c)(4) exempts a motor vehicle gift from excise tax when it moves between:
- Spouses, in either direction
- Parent and child, in either direction
- Grandparent and grandchild, in either direction
That list is exhaustive. Siblings, aunts and uncles, cousins, in-laws, stepparents, and friends do not qualify. A car given to a brother or a best friend is treated as a purchase, and the recipient owes the full 6.875 percent excise tax on the fair market value.1Minnesota Office of the Revisor of Statutes. Minnesota Code 297B.01 – Definitions
The transfer also has to be a true gift. Zero monetary consideration. If any money changes hands, even a token dollar, the transaction is a sale and the full excise tax applies.1Minnesota Office of the Revisor of Statutes. Minnesota Code 297B.01 – Definitions Trading services, forgiving a debt, or swapping something else of value all count as consideration. The affidavit is the sworn record that nothing was exchanged.
What to Bring
Gather everything before going to the deputy registrar. Missing one document means a second trip.
- The vehicle’s current certificate of title, with the donor’s signature on the title assignment. If the title has been lost, the donor applies for a duplicate first.
- Form PS2000, available on the DVS forms page or at any deputy registrar office.2Minnesota Department of Public Safety. Vehicle Forms, Documents and Tax Manual
- Proof of Minnesota liability insurance in the recipient’s name.
- Payment for administrative fees (see below).
If a lien is still recorded against the vehicle, the lienholder has to release it before the title can transfer. A lien release letter or a title showing no lien satisfies this.
Filling Out the PS2000
The form is short, usually one page, but it functions as a sworn statement. Both parties sign under penalty of perjury.
Enter the vehicle year, make, and full 17-character VIN. Copy the VIN directly from the title or the door jamb plate. A single transposed digit can hold up the filing. Fill in both parties’ full legal names and current addresses.
Check the box that describes the relationship: spouse, parent/child, or grandparent/grandchild. This is the line that triggers the exemption. Checking a box that doesn’t match the actual relationship is a false statement on a sworn document.
Both parties sign and date. Under Minn. Stat. § 609.48, perjury on a sworn affidavit is punishable by up to five years in prison, a fine of up to $10,000, or both.3Minnesota Office of the Revisor of Statutes. Minnesota Code 609.48 – Perjury DVS does flag transfers that look like disguised sales.
Signing the Title and Odometer Disclosure
On the back of the title, the donor fills in the recipient’s name, signs as seller, and prints the date. The recipient signs as buyer. Where the title asks for purchase price, write “gift” or “$0.”
Federal odometer disclosure applies to most title transfers. Under 49 CFR § 580.17, a vehicle with a model year of 2010 or older is exempt from odometer disclosure when transferred in 2026, having passed the 10-year threshold. Vehicles from model year 2011 or newer won’t reach the 20-year exemption until at least 2031.4eCFR. 49 CFR 580.17 – Exemptions For a 2011-or-newer vehicle, record the current reading on the title (or a separate odometer disclosure) and mark whether the mileage is actual, exceeds mechanical limits, or is not actual. Falsifying an odometer reading is a federal offense; report the number honestly even if it’s high.
What You Pay
Because a qualifying family gift is excluded from the definition of a taxable sale, no motor vehicle excise tax applies. Not the 6.875 percent, and not any flat in-lieu amount.5Minnesota Office of the Revisor of Statutes. Minnesota Code 297B.02 – Tax Imposed The standard title-transaction fees still apply:
- Filing fee: $12
- Public safety vehicle fee: $3.50
Together, $15.50. Depending on the situation, the recipient may also owe registration renewal fees, a wheelage tax that varies by county, and plate fees if new plates are needed.6Minnesota Department of Public Safety. Vehicle Fees The deputy registrar calculates the exact total when you hand over the paperwork.
Where to File
The recipient submits the completed PS2000, signed title, insurance, and payment at any deputy registrar office. That’s the fastest route. Staff review everything on the spot and can flag problems immediately, and most offices take walk-ins during business hours.7Minnesota Department of Public Safety. Vehicle Title Transfer
You can also mail the documents to DVS:
Driver and Vehicle Services
445 Minnesota St., Suite 195
Town Square Building
Saint Paul, MN 55101-51908Minnesota Department of Public Safety. Contact
If mailing, include a check or money order for the fees and copy everything first. Originals go to DVS and don’t come back. The new title typically arrives in four to six weeks, longer during peak periods.9Anoka County, MN. Fast Track Expedited processing is available for an additional $20.
The Donor’s Separate Report to DVS
Most donors miss this step, and skipping it causes real problems. Minnesota requires anyone who sells, donates, or removes a vehicle from the state to report the transfer to DVS. If the ownership documents and fees aren’t submitted to a deputy registrar within 30 days, DVS suspends the vehicle’s registration, and the donor gets the notice, because DVS still shows the donor as owner until the title transfer clears.10Minnesota Department of Public Safety. Vehicle Title Report Vehicle Sold, Donated or Removed From State
File the report through the DVS online portal at onlineservices.dps.mn.gov and select the option to mark a vehicle as sold or donated. Doing this promptly also protects the donor from liability for parking tickets or towing fees if the recipient drags their feet on the title transfer.
Federal Gift Tax
The PS2000 handles Minnesota. The IRS has its own rules. For 2026, the federal annual gift tax exclusion is $19,000 per recipient.11Internal Revenue Service. Gifts and Inheritances If the vehicle’s fair market value is more than $19,000, the donor files IRS Form 709 with their federal return for the year of the gift.12Internal Revenue Service. About Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Filing Form 709 doesn’t automatically mean owing federal gift tax. It reports the gift and applies the excess against the donor’s lifetime exclusion, which is $15,000,000 for 2026.13Internal Revenue Service. What’s New – Estate and Gift Tax For most donors, it’s paperwork, not a tax bill. If the vehicle is worth $19,000 or less, no federal reporting is needed.