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

To transfer a car title to a family member in Texas, both of you go in person to a county tax assessor-collector office with the signed title, a completed Form 130-U, a completed and witnessed Form 14-317 gift affidavit, photo ID, and proof of Texas liability insurance. If the family relationship qualifies and no money changes hands, the transfer is taxed at a flat $10 instead of the 6.25% motor vehicle sales tax that would otherwise apply.¹

Which Relatives Qualify for the $10 Gift Rate

Texas defines family broadly for the gift tax. Qualifying recipients include a spouse (separate property only), parent, stepparent, child, stepchild, grandparent, grandchild, great-grandparent, great-grandchild, sibling, guardian, and foster parent.²

The list also covers in-laws: father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, grandparent-in-law, grandchild-in-law, great-grandparent-in-law, and great-grandchild-in-law. Transfers to or from a qualifying 501(c)(3) nonprofit also get the $10 rate.¹

If the recipient isn’t on that list, the transfer doesn’t qualify as a gift for Texas tax purposes and the standard 6.25% motor vehicle sales tax applies based on the vehicle’s value.

When the Transfer Counts as a Gift

The $10 rate applies only when the vehicle is transferred for no consideration. If any payment is involved, the transfer is treated as a sale and taxed at 6.25%.³

There is one useful exception. A payment of less than 10% of the vehicle’s current appraised fair market value doesn’t count as consideration. A parent who sells a $20,000 car to their child for $1,500 still qualifies for the $10 gift tax, because $1,500 is under 10% of the vehicle’s value.³

Between Spouses

A vehicle acquired during the marriage is presumed community property in Texas, and transferring a community property vehicle between spouses owes neither the $10 gift tax nor the standard sales tax.⁴ The $10 gift tax applies only when a spouse transfers a vehicle that was their separate property, such as one owned before the marriage.³

Documents to Bring

Gather these before heading to the county tax office:

The original Texas Certificate of Title, signed over by the donor on the back with the recipient’s name, the date, and the odometer reading.
Valid government-issued photo ID for both parties. Acceptable IDs include a driver’s license or state ID card from any U.S. state, a U.S. or foreign passport, a U.S. military ID, or a Department of Homeland Security identification document.⁵
Proof of Texas liability insurance in the recipient’s name. Most insurers offer a grace period of 7 to 30 days on a newly acquired vehicle, but confirm this with your insurer.
A lien release from the lender, if the vehicle had a loan.

Federal law requires the donor to disclose the odometer reading at the time of transfer, and the disclosure is normally completed on the title itself. Vehicles from model year 2010 or earlier are exempt; 2011 and newer vehicles become exempt 20 years after their model year.⁶ For non-exempt vehicles, a wrong reading is a federal offense, so get it right.

If There’s a Lien on the Vehicle

You can’t transfer a title while a loan is still on the vehicle. The lienholder keeps the title until the loan is paid off, so the first step is paying the balance and obtaining a lien release. Once released, the lender will either mail you the title or release it electronically, and you bring the release document to the county tax office with everything else.⁷

Forms to Complete

Two forms are required, both available on the TxDMV website.

Form 130-U (Application for Texas Title and/or Registration) is the standard title application. It asks for the VIN, year, make, model, and the names and addresses of both parties, and both must sign it.⁸

Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) is what triggers the $10 gift tax in place of the 6.25% sales tax. Both the donor and recipient sign it, and the signatures must be witnessed by either a notary public or a county tax assessor-collector (or their employee).⁹ If both of you go to the county tax office together, staff will witness the signatures on the spot at no charge. Otherwise you’ll need to visit a notary first, and Texas notaries can charge up to $10 for the first signature.¹⁰

Where to Go and What It Costs

Either the donor or the recipient must submit the documents in person at a county tax assessor-collector office. There’s no mail-in or fully online option for the title transfer itself.⁷

Going together is the practical move. Staff can witness the Form 14-317 on the spot, and any paperwork problems get sorted before you leave.

Plan on the following:

Title application fee: $33
Gift tax: $10 (or $0 for community property between spouses)
Registration fee: $50.75 for most passenger cars and light trucks (6,000 lbs. or less), plus local county fees that vary¹¹
Inspection program replacement fee: $7.50 (or $16.75 for a new vehicle not previously registered)¹²

Local county fees typically add $0 to $21.50 on top of the state registration fee. Budget roughly $100 to $125 for the full transfer, though the total varies by county.

The 30-Day Deadline

The recipient has 30 calendar days from the date of transfer to apply for the new title. Miss that window and you owe an automatic $25 late fee. After 60 days, an additional $25 penalty accrues for every 30-day period (or partial period) the application remains unfiled.¹³ Waiting six months can add over $100 in late fees on top of the normal transfer costs.

Active-duty military personnel get an extra 30 days, so the deadline is 60 calendar days before penalties begin.¹³

What the Donor Files Afterward

The person giving the vehicle has one more step: filing a Vehicle Transfer Notification with TxDMV within 30 days of the transfer date. It can be done online at txdmv.gov. Once TxDMV processes the notification, the donor is no longer liable for parking tickets, toll violations, or other issues tied to the vehicle if the recipient hasn’t yet titled it.⁷ File it even when you trust the recipient. It takes a few minutes and closes the liability gap between handing over the vehicle and the recipient completing the title paperwork.

If the Family Member Has Died

A transfer after a death runs on a different track. If the estate doesn’t go through probate and no administration is necessary, the heirs can use Form VTR-262, the Affidavit of Heirship for a Motor Vehicle, to transfer the title without a court proceeding.¹⁴ The affidavit requires the heirs to certify under oath that the owner died, that either no will exists or no probate application has been filed, and that no estate administration is needed. All known heirs must be listed, and the form designates which heir will take title. If a court has determined that no administration is necessary, attach the original or certified copy of that court order along with the relevant portions of the will.

If the title was held jointly with right of survivorship, the surviving co-owner can usually retitle by presenting the title, a certified death certificate, and photo ID at the county tax office. Bring the death certificate regardless. The county tax office will tell you what else they need based on how the title reads.

Federal Gift Tax: A Separate Issue

The Texas $10 gift tax is a state transfer fee and has nothing to do with the federal gift tax, which trips up some donors. For 2026, the IRS lets you give up to $19,000 per person per year without any gift tax reporting.¹⁵

If the vehicle is worth more than $19,000, the donor must file IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return) by April 15 of the following year. Filing doesn’t mean you owe tax. The excess just reduces your lifetime gift and estate tax exemption, which is over $13 million for 2026. Virtually no one actually owes federal gift tax on a vehicle, but the filing requirement is real and skipping it is a violation.¹⁶

Gifts between spouses who are both U.S. citizens are entirely exempt from federal gift tax, with no dollar limit. If the recipient spouse is not a U.S. citizen, the annual exclusion for 2026 is $194,000 rather than $19,000.¹⁵

1
Texas Comptroller of Public Accounts. Motor Vehicle Tax Guide – Gift Tax
2
State of Texas. Texas Tax Code 152.062
3
Cornell Law Institute. Texas Administrative Code 34-3.80 – Motor Vehicles Transferred as a Gift
4
Texas Comptroller of Public Accounts. Motor Vehicle Tax Guide – Community Property
5
Department of Public Safety. Identification Requirements
6
eCFR. 49 CFR Part 580 – Odometer Disclosure Requirements
7
Texas Department of Motor Vehicles. Buying or Selling a Vehicle
8
Texas Department of Motor Vehicles. Application for Texas Title and/or Registration – Form 130-U
9
Texas Department of Motor Vehicles. Affidavit of Motor Vehicle Gift Transfer – Form 14-317
10
Texas Secretary of State. Notary Public Educational Information
11
Texas Department of Motor Vehicles. Schedule of Texas Registration Fees
12
Texas Department of Public Safety. Vehicle Safety Inspection Changes Take Effect January 2025
13
Texas Department of Motor Vehicles. State Law Requires Private Sale Vehicle Buyers to Title in 30 Days or Face Financial Penalties
14
TXDMV.gov. Affidavit of Heirship for a Motor Vehicle – Form VTR-262
15
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
16
Internal Revenue Service. Gifts and Inheritances