To gift a car to a family member in Louisiana, you sign a notarized Act of Donation in front of two witnesses, hand over the signed title, and have the recipient take the paperwork to the Office of Motor Vehicles to retitle the vehicle. Because no money changes hands, the 5% state sales tax on vehicle purchases doesn’t apply. State fees run about $76.50. The catch: Louisiana Civil Code treats a donation as absolutely null if the formalities aren’t followed exactly, so the paperwork has to be right the first time.
Documents to Gather Before You Start
Get everything in one place before scheduling a notary. One missing item can push the whole transfer back a week.
- The original Louisiana certificate of title in the donor’s name, with any lien released.
- The Act of Donation form, DPSMV 1699, which requires the VIN, year, make, model, and odometer reading.1Louisiana Department of Public Safety and Corrections. Act of Donation – DPSMV1699
- Application for Title, DPSMV 1799, filled out by the recipient.2Louisiana Office of Motor Vehicles. New Title and Registration
- A current driver’s license or state ID for both the donor and the recipient.
- Proof of Louisiana liability insurance in the recipient’s name. The OMV will not issue a new registration without it.
The recipient needs an active policy before the notary appointment, not after. Buying coverage the same day you plan to visit the OMV is fine, but showing up without it is not.
Clear the Lien First
A vehicle with an outstanding loan cannot be donated. The lienholder’s name is on the title, and the OMV will not process the transfer until the lien is released on the face of the title or documented separately.3Louisiana Department of Public Safety Office of Motor Vehicles. Louisiana OMV Title Transfer Policy
If you paid the loan off but never received a clear title, call your lender and request one, or ask for a lien release letter. Some lenders send the title automatically after payoff; others sit on it until you ask. This is the single biggest source of delay in vehicle gifts, so handle it weeks ahead.
Sign the Act of Donation the Right Way
Louisiana Civil Code article 1541 requires a donation of movable property above a certain value to be executed as an “authentic act,” or it is absolutely null and has no legal effect.4Louisiana State Legislature. Louisiana Civil Code 1541 – Of the Form of Donations Inter Vivos An authentic act is signed by both parties before a notary public and two witnesses, with all four people signing.5Louisiana State Legislature. Louisiana Civil Code 1833 – Authentic Act Bring only one witness and the donation is void.
At the appointment, the donor and recipient appear in person along with two competent adult witnesses and a commissioned Louisiana notary. Both parties sign the DPSMV 1699 and the assignment section on the back of the title. The witnesses and notary sign both documents, and the notary applies the official seal. That seal is what makes the record authentic for OMV purposes.
Check that legal names match exactly across the title, the Act of Donation, and each person’s ID. A missing middle initial is enough for the OMV to bounce the paperwork. Notary fees for motor vehicle document notarizations are capped at $15 per transaction.
File a Notice of Transfer to Protect the Donor
Most people skip this step, and it matters. Once the donor hands over the keys and signed title, the OMV still shows the vehicle registered in the donor’s name until the recipient completes retitling. If the recipient racks up a parking ticket, a toll violation, or causes an accident in the meantime, those problems can come back to the donor.
Louisiana’s OMV accepts a Notice of Vehicle Transfer online.6OMVNRG Services – Office of Motor Vehicles. Notice Of Vehicle Transfer Submitting it flags the record immediately as no longer the donor’s responsibility. The transfer isn’t legally complete until the recipient applies for the new title, but the notice creates the paper trail that separates the donor from what happens next.
Title and Register at the OMV
The recipient takes the notarized Act of Donation, the signed-over title, the completed DPSMV 1799, proof of insurance, and photo ID to any OMV office or licensed Public Tag Agent. A technician verifies the documents and updates ownership.
The OMV charges a $68.50 title fee and an $8.00 handling fee, for $76.50 in state fees.7Louisiana Office of Motor Vehicles. Vehicle Registration, Title and Plate Fees A Public Tag Agent adds a small convenience fee. No sales tax is owed. Registration fees for the plate depend on vehicle type and weight.
The OMV treats a properly executed Act of Donation as a non-taxable transfer.8Louisiana Department of Revenue. General Sales and Use Tax If the paperwork is incomplete or the parties can’t demonstrate the relationship, the OMV may treat the transaction as a sale and assess tax on the vehicle’s fair market value. Misrepresenting a sale as a donation to avoid tax can trigger penalties under state revenue statutes.
What Happens to the License Plate
For standard passenger vehicles, Louisiana law keeps the license plate with the vehicle when ownership transfers. The plate stays on the car through the end of the current registration year, and the recipient renews it in their own name when it expires.9Justia. Louisiana Revised Statutes 47:509 – Transfer of Certain Registration Certificates Trucks, trailers, and buses follow a different rule: the plate transfers with the owner rather than the vehicle.
The new title usually arrives by mail within a few weeks. Keep copies of every notarized document and receipt.
Federal Gift Tax Still Applies
Louisiana doesn’t tax the donation, but the IRS treats a gifted car as a taxable gift for federal purposes. For 2026, the annual gift tax exclusion is $19,000 per recipient.10Internal Revenue Service. What’s New – Estate and Gift Tax If the car’s fair market value is below that, you owe nothing and file nothing.
If the car is worth more than $19,000, the donor files IRS Form 709 to report the gift.11Internal Revenue Service. Instructions for Form 709 Filing doesn’t mean you owe tax. The excess counts against the lifetime exemption, which sits at $15,000,000 for 2026.10Internal Revenue Service. What’s New – Estate and Gift Tax Unless the vehicle is a rare collector car or you’ve already made millions in lifetime gifts, no federal tax is actually due. The form still needs to be filed by Tax Day of the following year to avoid penalties.