How to Gift a Car in CT: Forms, DMV Fees, and Gift Tax

To gift a car in CT, the donor signs the title over to the recipient, both parties complete a Bill of Sale (Form H-31) and a Gift Declaration (Form AU-463), and the recipient registers the vehicle at the DMV in their own name with their own insurance. Connecticut waives its 6.35% use tax on the transfer only when the recipient is the donor’s spouse, parent, child, or sibling.1Connecticut General Assembly. Connecticut Code Chapter 219 – Sales and Use Taxes Grandparents, grandchildren, cousins, aunts, uncles, and in-laws are not on that list and owe the tax on fair market value.2CT.gov. Sales and Use Tax Information

On a $15,000 car, that exemption is worth roughly $950. Everything else about the transfer, though, still costs money and still requires paperwork.

When the Gift Won’t Qualify

Even between qualifying relatives, a few things can block the transfer or void the tax exemption.

The donor cannot receive anything in return. The Connecticut DMV prohibits any consideration in a gift transfer, including cash, property, services, or the recipient taking over payments on the vehicle.3Department of Motor Vehicles. Transfer Vehicle Ownership The moment the recipient assumes the donor’s loan balance, the deal stops being a gift and the exemption disappears.

The DMV will also refuse the transfer if the vehicle has delinquent municipal property tax against it or if its registration is under suspension.3Department of Motor Vehicles. Transfer Vehicle Ownership Resolve any outstanding town taxes or registration issues before either of you starts filling out forms.

If the title still shows a lienholder, you cannot gift the car until the loan is paid off and the lien is cleared. Once the loan is satisfied, the lender should send either a stamped “paid” title or a lien release letter on lender letterhead that includes the owner’s name, vehicle description, a statement that the loan is paid in full, and an authorized signature.4CT.gov. Make Changes to a Car Title at the DMV

Forms and Documents

Gather the full packet before the DMV appointment. Missing one item means starting over.

  • The Connecticut title, with the donor’s signature filled in on the “Assignment of Ownership” section on the back. Owner name and VIN must match DMV records exactly.
  • Bill of Sale, Form H-31. The donor and recipient both complete their sections, and the selling price is entered as “$0” or “Gift.”5Department of Motor Vehicles. Bill of Sale Form H-31
  • Gift Declaration, Form AU-463. This is what the Department of Revenue Services uses to verify the family relationship and approve the tax exemption. It asks for both parties’ names and addresses, the specific relationship, and the vehicle’s year, make, model, and VIN. The donor signs it under penalty of perjury.6State of Connecticut Department of Revenue Services. Gift Declaration Form AU-463
  • A permission letter from the donor if the recipient wants to keep the donor’s existing license plates. Without it, the DMV issues new plates.3Department of Motor Vehicles. Transfer Vehicle Ownership
  • Lien release, if a lienholder was ever listed on the title.

Both H-31 and AU-463 are downloadable from the Connecticut DMV website. Check the VIN on every document against the title itself. One transposed digit gets the whole application rejected.

Insurance and Emissions

The recipient must have their own Connecticut auto insurance policy in place before the DMV visit. The donor’s coverage does not carry over, and the DMV will not register a car without proof of active insurance in the new owner’s name. Confirm the VIN on the insurance card matches the title.

Cars older than four model years also need a passing biennial emissions inspection at an authorized station. The test fee is capped at $20 by statute.7Connecticut General Assembly. Clean Air Act and Emissions Testing Fees FAQ Vehicles four model years old or newer skip the test but pay a $40 emissions exemption fee at registration.8Department of Motor Vehicles. DMV Fees

What the Recipient Still Pays at the DMV

The tax exemption is real, but the DMV charges its usual registration and titling fees regardless of how the car changed hands. For a standard passenger vehicle:8Department of Motor Vehicles. DMV Fees

  • Registration fee: $120 for most passenger cars, SUVs, and vans; $132 for combination registrations
  • Title fee: $25
  • Administrative fee: $10
  • Clean Air Act fee: $15
  • Passport to the Parks fee: $24, up from $15 as of July 1, 20259CT.gov. Passport to the Parks
  • Plate fee: $5 for new plates, waived if the donor’s plates transfer with a permission letter
  • Lien fee: $10, only if a new lien is being recorded
  • Emissions exemption fee: $40 for vehicles four model years old or newer

For a typical used-car gift, the core fees total roughly $199 to $211 before any conditional add-ons. The DMV accepts cash, checks, and credit cards.

At the DMV Appointment

Most Connecticut DMV services now run by appointment only.10Department of Motor Vehicles. DMV Locations and Hours Book through the DMV’s online portal before going to a branch. Walk-ins may work at some offices but plan on long waits.

The recipient brings the signed title, Form H-31, Form AU-463, proof of insurance, and the emissions report if the car needed testing. The clerk checks for outstanding property taxes or parking tickets tied to the vehicle or the recipient before approving the registration.11CT.gov. DMV Online Services in Connecticut Anything flagged must be cleared first. Once the fees are paid and everything checks out, the DMV issues a new title in the recipient’s name and either transfers the donor’s plates or issues new ones.

The Town Property Tax Bill That Follows

Once the new registration is processed, the DMV notifies the local tax assessor in the recipient’s town. Connecticut municipalities charge annual personal property tax on motor vehicles, so the assessor sends a prorated bill for the rest of the current assessment year, and a full-year bill follows the next October 1.

Amounts vary because each town sets its own mill rate. A car assessed at $10,000 in a town with a 30-mill rate runs $300 a year. This is an ongoing cost on top of the one-time DMV fees, and it belongs in the recipient’s decision.

Federal Gift Tax

Connecticut handles its own tax at the DMV, but the IRS treats a gifted car like any other gift of value. For 2026, an individual can give up to $19,000 per recipient per year with no federal gift tax reporting.12Internal Revenue Service. What’s New – Estate and Gift Tax If the car’s fair market value is at or below that threshold, there’s no federal paperwork.

Above $19,000, the donor files IRS Form 709 by April 15 of the following year.13Internal Revenue Service. Gifts and Inheritances Filing does not mean paying. The overage counts against the donor’s lifetime gift and estate tax exemption, which sits at $15,000,000 for 2026.12Internal Revenue Service. What’s New – Estate and Gift Tax Very few people actually owe federal gift tax on a car. Skipping a required Form 709 can still trigger penalties, so check the value before you assume you’re clear.