How to Transfer a Car Title to a Family Member in California

To transfer a car title to a family member in California, sign the back of the Certificate of Title over to the relative, fill out a Statement of Facts (REG 256) to claim the family exemptions, and submit the paperwork to the DMV with a $15 transfer fee.¹ The person giving the car also has to file a Notice of Transfer and Release of Liability within five days, or they stay on the hook for tickets and liability tied to the vehicle.²

The steps below assume the title is clean (no active loan) and the car is already registered in California. If either isn’t true, jump ahead to the section that fits your situation.

The Documents You Both Need to Sign

The Certificate of Title, the “pink slip,” is the main document. The current owner signs the seller line on the back. The family member receiving the car signs the buyer line on the same document. Record the current odometer reading in the space provided.³

Federal law requires an odometer disclosure for vehicles from model year 2011 or later that are less than 20 years old. Older vehicles follow the previous 10-year rule.⁴

If the pink slip is lost or unreadable, the current owner has to file an Application for Replacement or Transfer of Title (REG 227) and get a new one before anything else can happen.⁵

The second document is the Statement of Facts (REG 256). The new owner fills this out to declare the family relationship and claim the tax exemption. Write in the specific relationship (parent, child, grandparent, and so on). If the car is a gift, note that. Even if money changes hands between qualifying relatives, the exemption still applies; it covers all transfers between the listed relatives, not gifts only.⁶

Fill every field. The DMV rejects incomplete forms, and a mailed rejection can add weeks.

Which Relatives Actually Qualify for the Exemptions

California waives two things on qualifying family transfers: the smog inspection and the use tax. The list of qualifying relatives is different for each, and that mismatch is where people get caught.

Smog inspection is waived for transfers between a spouse, registered domestic partner, sibling, child, parent, grandparent, or grandchild.⁷

Use tax is waived on transfers between spouses, and between a natural or legally adopted parent, grandparent, child, or grandchild. Siblings qualify only if both are minors. Registered domestic partners and adult siblings are not on the use tax list; neither are stepparents or stepchildren.⁶⁸

Those relatives skip the smog check but still owe use tax on the vehicle’s fair market value. California’s base sales tax rate is 7.25% and runs higher in many counties. On a $15,000 car, that’s more than $1,000 in tax if you assumed the exemption applied and it didn’t.

One smog trap: if a family member bought the car for you at a private sale and never titled it in their own name first, a smog inspection is required.⁷ The family exemption only applies once the car has actually been titled in the giver’s name.

Separately, some vehicles skip smog no matter who’s involved. For a change of ownership, gasoline and hybrid vehicles four model years old or newer are exempt, along with model year 1975 and older vehicles, electric vehicles, and motorcycles.⁹ For newer cars exempt by age, the DMV charges a small smog transfer fee instead of an inspection.

Fees and How to Submit

The title transfer fee is $15.¹ With the family use tax exemption, that’s the main cost. Without it, add use tax at your local sales tax rate on the vehicle’s fair market value. The DMV has an online fee calculator that estimates the total.

Submit the package (signed title, REG 256, smog certificate if required, and payment) in one of two ways:³

In person at any DMV office. Book an appointment ahead of time; walk-in waits can run hours.
By mail to DMV, PO Box 942869, Sacramento, CA 94269.

The new title arrives by mail. Mailed submissions currently take about 15 to 30 days to process.¹⁰

The Five-Day Deadline for the Giver

The person handing over the car has an obligation that’s separate from the title paperwork and easy to forget. Within five calendar days of the transfer, they have to file a Notice of Transfer and Release of Liability (REG 138) with the DMV.² This is required under California Vehicle Code §5900.

Filing REG 138 cuts off the previous owner’s liability for parking tickets, traffic violations, and civil or criminal matters tied to the vehicle after the transfer date.¹¹ Skip it and a parking ticket on the car can still land in your mailbox months later. The fastest way to file is online through the DMV website; a printed REG 138 can also be mailed to the address on the form.

If the Car Still Has a Loan

You cannot transfer a car to a family member while a lien is active. The lender holds the title and won’t release it until the loan is paid off.

Once the balance is satisfied, the lienholder releases their interest, typically through a Lien Satisfied/Title Holder Release (REG 166). For vehicles two model years old or newer, the Certificate of Title itself is the only document the DMV accepts to release the lien.¹² With a clean title in hand, run the standard transfer.

To move a car to a relative while payments are still owed, the only real options are paying off the balance first or refinancing the loan in the new owner’s name.

Inheriting a Car from a Deceased Relative

The process above is for a transfer between living family members. If the owner has passed away, the path is different.

When the total estate is $150,000 or less, an heir can use an Affidavit for Transfer Without Probate (REG 5), along with a death certificate and the title, to claim the vehicle. At least 40 days must have passed since the date of death.¹³

If the deceased owner had designated a Transfer on Death beneficiary on the title, that beneficiary submits the title and a REG 256 stating the date and place of death and their status as the beneficiary.¹⁴

For estates over $150,000, the vehicle transfer generally goes through probate, and the executor handles it with court authorization.³

Federal Gift Tax on Higher-Value Cars

Giving a car counts as a gift to the IRS. For 2026, the federal gift tax annual exclusion is $19,000 per recipient.¹⁵ If the vehicle’s fair market value is above that, the giver has to file IRS Form 709.

Filing Form 709 doesn’t automatically mean owing tax. The excess counts against your lifetime gift and estate tax exemption, which is over $13 million for 2026. Almost nobody actually owes federal gift tax on a car. But not filing when required is a compliance issue the IRS can flag later.

The IRS uses fair market value on the date of the gift, meaning what a willing buyer and seller would agree on, not trade-in value.¹⁶ A Kelley Blue Book “private party” figure usually satisfies the IRS. If you’re claiming a lower value, keep documentation showing how you got there.

Plates and Insurance Before Driving Off

In California, license plates stay with the vehicle during a transfer. Regular plates remain on the car for family transfers between parents, children, and grandparents. Special or personalized plates can also stay in these family situations, though a REG 256 may be needed if the new owner has a different last name or address.¹⁷

The new owner needs auto insurance before driving the vehicle. California’s minimum liability coverage is $30,000 for injury or death to one person, $60,000 for injury or death to multiple people, and $15,000 for property damage.¹⁸ If the new owner already has an active policy on another car, most insurers give a grace period of about a week to add the new one. Without an existing policy, get coverage before the car leaves the driveway.

1
California State Department of Motor Vehicles. Registration Fees
2
California State Department of Motor Vehicles. Notice of Transfer and Release of Liability
3
California State Department of Motor Vehicles. Title Transfers and Changes
4
National Highway Traffic Safety Administration. Consumer Alert – Changes to Odometer Disclosure Requirements
5
California State Department of Motor Vehicles. Application for Replacement or Transfer of Title REG 227
6
California State Department of Motor Vehicles. Transactions Not Subject to Use Tax
7
California State Department of Motor Vehicles. Smog Inspections
8
California Department of Tax and Fee Administration. Sales and Use Tax Annotations – 585.0020
9
Bureau of Automotive Repair. Smog Check – When You Need One and Whats Required
10
California State Department of Motor Vehicles. Processing Times
11
California State Department of Motor Vehicles. Notice of Transfer and Release of Liability NRL/IRL REG 138
12
California State Department of Motor Vehicles. Legal Owner Lienholder Transfers
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California State Department of Motor Vehicles. Estate Valued at $150,000 or Less
14
California State Department of Motor Vehicles. Transfer on Death TOD Beneficiary
15
Internal Revenue Service. Whats New – Estate and Gift Tax
16
Internal Revenue Service. Instructions for Form 709
17
California State Department of Motor Vehicles. Special License Plate Transfers
18
California State Department of Motor Vehicles. Financial Responsibility, Insurance Requirements, and Collisions