To gift a car in Wisconsin, the giver signs over the Certificate of Title with an accurate odometer reading, the recipient files a Title and License Plate Application (Form MV1) marking the transaction as a gift, and the giver reports the transfer through WisDOT’s Seller Notify portal. The gift designation waives sales tax entirely. The title fee is still $214.50 as of October 2025, and the recipient has two business days to display Wisconsin plates before driving the car.
What the Giver Signs
Pull out the original Wisconsin Certificate of Title. On the back, in the seller/transferor area, sign your name and date the transfer. That date fixes when ownership changed hands, which matters for liability and for the recipient’s registration clock.
Record the current odometer reading in the disclosure section on the title. State and federal law require a written odometer disclosure, and Wisconsin prints the disclosure directly on the title so it doubles as the required statement in most private transfers. Vehicles from model year 2009 or older, and those with a gross weight rating over 16,000 pounds, are exempt from the disclosure requirement.1Wisconsin Department of Transportation. Odometer Tampering Check that the reading matches what’s printed from the last transfer; a gap will draw questions at the DMV.
Hand the signed and dated title to the recipient. If the title is from another state, the gift and family-transfer exemptions do not run through WisDOT’s standard online system, so the transfer may need to go through the mail or a DMV service center.2Wisconsin DMV Official Government Site. eMV Public FAQs – Purchase Price Information
What the Recipient Files
The recipient submits the signed-over title along with a completed Form MV1, either through WisDOT’s eMV Public system, by mail, or in person at a DMV service center.3Wisconsin Department of Transportation. MV1 Online Application Wisconsin requires you to apply for the new title immediately and to display Wisconsin plates or a temporary plate within two business days of the transfer.4Wisconsin Department of Transportation. Title and Register Your Vehicle With eMV Public
On the MV1, mark the purchase price as “gift,” or select the gift exemption when filing online. That entry is what triggers the sales tax waiver.2Wisconsin DMV Official Government Site. eMV Public FAQs – Purchase Price Information
The fees apply whether the car was gifted or bought:
- Title fee: $214.50, increased from $164.50 as of October 1, 2025
- Annual registration for a standard automobile: $85
Motorcycles, mopeds, and autocycles carry different registration fees.5Wisconsin Department of Transportation. DMV Fees
The recipient can request new plates or transfer plates from another vehicle they already own. Wisconsin does not ask for proof of insurance at registration.6Wisconsin Department of Transportation. Minimum Insurance Requirements Wisconsin law still requires liability coverage to drive on public roads, so line that up before the recipient takes the wheel.
Claiming the Tax Exemption
Wisconsin recognizes two separate exemptions people often confuse, and either one zeroes out sales tax on the transfer.
Gift Exemption
If no money or other consideration changed hands, the transfer qualifies as a gift regardless of the parties’ relationship. A friend, coworker, or neighbor can gift a car tax-free.2Wisconsin DMV Official Government Site. eMV Public FAQs – Purchase Price Information
Family Transfer Exemption
Transfers between immediate family members qualify for a family exemption even when some money changes hands. WisDOT’s list of qualifying relationships includes spouse, ex-spouse (with a copy of the divorce decree showing the vehicle was awarded), parent, child (including the child’s spouse), mother-in-law, father-in-law, stepparent, and stepchild.2Wisconsin DMV Official Government Site. eMV Public FAQs – Purchase Price Information Wisconsin statute also defines “immediate family member” to include grandparents, siblings, grandchildren, and their spouses.7Wisconsin State Legislature. Wisconsin Statutes 342.05(4)
If you’re gifting to a family member, either exemption works. Outside the family, only the gift exemption applies, and no money can pass at all.
Notify WisDOT That You Transferred the Car
Wisconsin law requires the person transferring a vehicle to notify WisDOT after the transfer. Do this through the Seller Notify portal at sellernotify.wi.gov.8Wisconsin Department of Transportation. Seller Notify Until WisDOT records the change, parking tickets, toll violations, and other issues tied to the car can circle back to the giver. The notification takes a few minutes and is independent of whatever the recipient does with the MV1.
If the Car Still Has a Loan on It
You cannot gift a vehicle with an active lien. The lienholder’s name sits on the title, and WisDOT will not process a transfer until it clears. Pay off the loan, or contact the lender about a payoff arrangement, before starting the transfer. Once the loan is satisfied, the lienholder notifies WisDOT and a clean title is issued in the giver’s name. Then, and only then, can the title be signed over to the recipient.
If you’ve already paid the loan but never received a clean title, ask the lender for a lien release letter and request a duplicate title from WisDOT.
Emissions Testing in Seven Counties
If the vehicle is customarily kept in Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Washington, or Waukesha County, the recipient must get an emissions test within 45 days of the title transfer.9Wisconsin Department of Transportation. Emission Test The rest of the state has no emissions requirement, and Wisconsin does not require a general safety inspection for private transfers.
Federal Gift Tax
Wisconsin’s exemption handles state sales tax. Federal gift tax is a separate track. For 2026, the IRS annual gift tax exclusion is $19,000 per recipient.10Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 If the fair market value of the car exceeds that amount, the giver must file IRS Form 709 by April 15 of the following year. Filing doesn’t automatically mean tax is owed; the excess simply counts against the giver’s lifetime exemption, which sits above $13 million for most people.11Internal Revenue Service. Gifts and Inheritances Most used-car gifts fall well under the exclusion and require no federal paperwork.
Watch Points for Government Benefits
SSI excludes one automobile from its resource limits regardless of value, so owning a gifted car generally won’t disqualify a recipient on SSI. The general SSI resource cap of $2,000 for an individual still applies to other assets, so cash or property passing alongside the car can create problems.
Medicaid is the bigger flag. If the giver may apply for Medicaid long-term care within five years, gifting a vehicle can trigger a penalty period. Medicaid’s look-back reviews asset transfers over the prior five years, and a gifted car counts as a transferred asset. Anyone in that situation should talk to an elder law attorney before signing the title.