To gift a car in New Jersey, sign the title over to the recipient with “GIFT” written on the purchase price line, complete a Vehicle Gift Affidavit (Form BA-62) with both signatures, and have the recipient bring both documents to a Motor Vehicle Commission agency along with ID, proof of address, and a New Jersey insurance card. The recipient pays a $60 title fee plus registration but owes no sales tax, saving 6.625% of the vehicle’s value.1New Jersey Department of the Treasury. Motor Vehicle Casual Sales FAQ
Paperwork to Prepare Before the MVC Visit
The original certificate of title does most of the work. On the back, the donor completes the “Assignment of Title” section, records the odometer reading, and writes “GIFT” or “$0” on the purchase price line. That notation is what triggers the sales tax exemption.2New Jersey MVC. Transferring Vehicle Ownership
Both parties then fill out the Vehicle Gift Affidavit, Form BA-62. It’s available as a PDF on the MVC site or at any agency counter.3New Jersey Motor Vehicle Commission. Vehicle Gift Affidavit Form BA-62 Fill it out beforehand. Both donor and recipient enter their personal information, the vehicle details, and their signatures.
The recipient also needs to satisfy New Jersey’s 6 Points of ID requirement and show proof of a New Jersey address. Common combinations include a passport or birth certificate, a Social Security card, a driver’s license, and a recent utility bill or bank statement. The MVC publishes the full point values for every accepted document.4New Jersey Motor Vehicle Commission. 6 Points of ID
Finally, the recipient must have New Jersey auto insurance in their own name for this vehicle before they walk into the MVC. Without a valid insurance card, registration cannot be completed.
If There’s a Loan on the Car
You cannot gift a car whose title is held by a lender. The donor has to pay off the loan and obtain a lien release first, then request a clean title from the MVC. Only then can the assignment section be signed and the vehicle transferred.
If the lien still appears on the title when the recipient goes to transfer it, the title fee rises to $85 for one lien or $110 for two, compared with the standard $60.5NJ MVC. Pre-owned Vehicle Title Bring the lender’s release paperwork to avoid delays.
Completing the Transfer at the MVC
Ownership transfers have to be done in person at an MVC agency.6New Jersey Motor Vehicle Commission. How To Get A Title For A New Vehicle – Section: Used Vehicles The donor does not have to come along; as long as the title and BA-62 are signed, the recipient handles the visit alone.
At the counter, the recipient presents:
- The original title with the donor’s signed assignment
- The completed BA-62
- 6 Points of ID
- Proof of New Jersey address
- A valid New Jersey insurance card for this vehicle
If someone else is handling the transaction for the recipient, that person needs a Power of Attorney or a General Letter of Authorization from the MVC.2New Jersey MVC. Transferring Vehicle Ownership The agent collects the fees and issues a new title, registration, and plates.
Fees and the Sales Tax Exemption
New Jersey charges no sales tax on a genuine gift, and the exemption applies regardless of the relationship between the parties, provided the title shows “GIFT” and the BA-62 is filed.7New Jersey Division of Taxation. New Jersey Consumer Automotive Tax Guide
Selling the car for $1 does not qualify. When the stated price is well below market, the MVC and the Division of Taxation can assess sales tax based on fair market value. Writing “GIFT” on the title and filing the affidavit is the only reliable route to the exemption.2New Jersey MVC. Transferring Vehicle Ownership
Standard MVC charges still apply:
- Title fee: $60 standard, $85 with one lien, $110 with two liens5NJ MVC. Pre-owned Vehicle Title
- Registration fee: based on vehicle weight and model year. Vehicles under 3,500 pounds run $46.50 if more than two model years old, or $59.00 if newer. Vehicles over 3,500 pounds run $71.50 or $84.00 on the same age split. Drivers 65 and older, and drivers with disabilities, receive a $7 discount.8New Jersey Motor Vehicle Commission. Registration and Title Fees
- License plates: new plates are issued to the recipient during the registration transaction.
What the Donor Needs to Do Afterward
Two loose ends are easy to miss. Plates in New Jersey stay with the owner, not the vehicle. If you own another vehicle in the same class, you can transfer the plates onto it. Otherwise you must surrender them at an MVC agency.9New Jersey Motor Vehicle Commission. About Plates
Then call your insurer to remove the vehicle from your policy. If the gifted car was the only one on the policy, you can cancel outright; if not, ask for that vehicle alone to be dropped. There’s no MVC filing for this step.
What the Recipient Needs to Do Afterward
Coverage must be in place before driving the car. New Jersey law requires every registered vehicle to carry liability insurance.10Justia. New Jersey Revised Statutes Section 39:6A-3 – Compulsory Automobile Insurance Coverage; Limits A first uninsured-driving offense carries a fine between $300 and $1,000, possible community service, and a license suspension of up to a year. A second offense can reach a $5,000 fine, 14 days in jail, and a two-year license suspension.11Justia. New Jersey Revised Statutes Section 39:6B-2 – Penalties
Inspection also carries over with the car. New vehicles get their first inspection at year five, and older vehicles are inspected every two years after that.12New Jersey Motor Vehicle Commission. Vehicle Inspections Check the windshield sticker for the next due date and schedule the appointment if it has passed.
Federal Gift Tax
New Jersey has no state gift tax, but federal rules apply to any transfer of property. In 2026, gifts of up to $19,000 per recipient per year require no filing.13Internal Revenue Service. What’s New — Estate and Gift Tax If the car’s fair market value is at or below $19,000, nothing is owed and nothing is filed.
If it’s worth more, the donor files IRS Form 709 for that year.14Internal Revenue Service. Instructions for Form 709 Filing doesn’t mean paying. The amount above $19,000 simply counts against the lifetime gift and estate tax exemption, currently in the millions. Unless prior gifts have already used up that lifetime amount, no tax is due; the form is a report.
One trap: selling a car for far less than it’s worth can be treated as a partial gift. Selling a $25,000 car for $5,000 could count as a $20,000 gift in the IRS’s view, which exceeds the annual exclusion and triggers a Form 709 filing.15Internal Revenue Service. Gift Tax
Effect on Medicaid and SSI
If either party is enrolled in Medicaid long-term care or receiving Supplemental Security Income, pause before completing the transfer. Medicaid applies a 60-month look-back when someone applies for long-term care benefits, and giving away a vehicle inside that window can produce a penalty period of disqualification.
For SSI, the Social Security Administration excludes one vehicle per household from the resource limit, regardless of value, as long as someone in the household uses it for transportation.16Social Security Administration. Automobiles and Other Vehicles Used For Transportation A second vehicle received as a gift counts as a resource at its equity value and could push a recipient over the SSI asset limit. Talk to a benefits planner before signing anything.