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

To transfer a car title to a family member in Tennessee, the current owner signs the title over to the relative, both parties complete the Affidavit of Nondealer Transfers of Motor Vehicles and Boats to claim the family sales tax exemption, and the new owner takes everything to a county clerk’s office with about $11 for the new title plus registration fees. The tax savings can be substantial, but only certain relationships qualify, and the paperwork has to be right before you show up.

Which Relatives Qualify for the Sales Tax Exemption

Tennessee limits the family exemption to spouses, siblings, and lineal relatives: parents, children, grandparents, grandchildren, great-grandparents, and great-grandchildren. Spouses of your children, grandchildren, and great-grandchildren also qualify.1Tennessee Department of Revenue. Affidavit of Nondealer Transfers of Motor Vehicles and Boats

Transfers to aunts, uncles, cousins, nieces, and nephews do not qualify. Those relatives owe Tennessee sales tax on the vehicle’s fair market value the same as any private-party buyer.

What to Bring to the County Clerk

Every item on this list has to be in hand. Missing one means coming back another day.

  • The current certificate of title, with the “Assignment of Title” section on the back filled in: new owner’s full legal name and address, current odometer reading, date, and the current owner’s signature. Write “Gift” in the purchase price field so the clerk applies the family exemption instead of calculating sales tax.
  • The Affidavit of Nondealer Transfers of Motor Vehicles and Boats, signed by both the giver and the recipient under penalty of perjury. It does not need to be notarized, and it’s available on the Tennessee Department of Revenue’s website.1Tennessee Department of Revenue. Affidavit of Nondealer Transfers of Motor Vehicles and Boats
  • A government-issued photo ID for both parties.
  • A lien release, if any money was owed on the vehicle. You cannot transfer a title with an active lien; the loan has to be paid off and released first.

Federal odometer disclosure rules apply to model year 2011 and newer vehicles for 20 years from the model year; 2010 and older vehicles are exempt.2Tennessee Department of Revenue. VT-4 – Odometer Disclosure and Exemption

If the Title Is Lost

A missing title adds one step. The current owner requests a duplicate through the county clerk using the Multi-purpose, Noting of Lien, and Duplicate Title Application. The fee is $14, plus any county fees. If a lien is still on record, only the lienholder can request the duplicate, and the replacement is mailed to them.3TN.gov. Duplicate Title Once the replacement arrives, the family transfer proceeds normally.

At the Clerk’s Office: The Transaction and the Cost

Take the signed title, the completed affidavit, and both IDs to any Tennessee county clerk’s office.4Tennessee Department of Revenue. VT-1 – Documents Needed to Title a Vehicle (Current Resident) The clerk processes the transfer, collects the fees, and issues registration and plates to the new owner on the spot. The new certificate of title is mailed a few weeks later.

State-level costs:

Most counties also charge a wheel tax at registration. Amounts range from around $10 in some rural counties to $100 in others. Call the clerk before your visit so the total isn’t a surprise.

Federal Gift Tax on a High-Value Vehicle

Tennessee has no state gift tax, but a federal reporting requirement kicks in if the vehicle’s fair market value exceeds the annual gift exclusion. For 2026, that exclusion is $19,000 per recipient.6Internal Revenue Service. Gifts and Inheritances

If the car is worth more, the giver files IRS Form 709 with that year’s federal return.7Internal Revenue Service. Instructions for Form 709 Filing usually doesn’t produce a tax bill; the excess counts against the lifetime gift and estate tax exemption, which sits above $13 million for 2026. Married couples can elect to split the gift, doubling the exclusion to $38,000 for a single vehicle.8Internal Revenue Service. What’s New — Estate and Gift Tax Skipping the form when it’s required is the mistake to avoid.

Transferring a Vehicle After a Family Member’s Death

An inherited vehicle follows a different path. A death certificate is always required, and the rest depends on whether there’s a surviving spouse, a will, and how large the estate is.

Surviving Spouse

A surviving spouse is entitled to the family vehicle regardless of the estate’s total value, and no Affidavit of Inheritance is required.9Vehicle Services County Clerk Guide. Inheritance Bring the death certificate, the existing title, ID, and the standard title fees. Applying within one year of the spouse’s death waives the registration transfer fee.10Justia Law. Tennessee Code 55-4-101 – Registration Required Before Operating Vehicle on Highway

No Will, No Surviving Spouse

When there’s no will and no surviving spouse, heirs use an Affidavit of Inheritance. All heirs agree in writing to transfer the vehicle to one person, who signs the back of the title as the buyer; no one signs as the seller.9Vehicle Services County Clerk Guide. Inheritance This shortcut is only available if the total estate value is $50,000 or less. Larger estates go through formal probate, and a court-appointed administrator handles the transfer.

Probated Will

When the deceased left a probated will, the executor signs the title assignment on behalf of the estate. The clerk will want the probated will or certified letters testamentary, the assigned title, a death certificate, and the standard title fees.9Vehicle Services County Clerk Guide. Inheritance If a will exists but has not been probated, heirs can still use the Affidavit of Inheritance with the death certificate, provided the estate falls under the $50,000 threshold.