How to Transfer a Texas Car Title to a Family Member as a Gift

To transfer a Texas car title to a family member as a gift, sign the existing title over to the recipient, complete Form 130-U and the notarized Form 14-317 gift affidavit, and file the paperwork in person at your county tax assessor-collector’s office within 30 days of the transfer date. Doing it this way replaces the 6.25% motor vehicle sales tax with a flat $10 gift tax.1Texas Comptroller. Motor Vehicle Tax Guide – Gift Tax Miss the deadline, mishandle the affidavit, or claim a relationship that doesn’t qualify, and the savings disappear fast.

Which Family Relationships Qualify

The $10 gift tax only applies when the donor and recipient share a relationship the Texas Comptroller recognizes. The list is broader than most people expect and includes in-laws:1Texas Comptroller. Motor Vehicle Tax Guide – Gift Tax

  • Spouse (limited to separate property transfers)
  • Parent, stepparent, or parent-in-law
  • Child, stepchild, or son/daughter-in-law
  • Sibling, brother-in-law, or sister-in-law
  • Grandparent or grandparent-in-law
  • Grandchild or grandchild-in-law
  • Great-grandparent, great-grandparent-in-law, great-grandchild, or great-grandchild-in-law
  • Guardian
  • Certain revocable trusts tied to the donor, recipient, or a deceased spouse

Cousins, aunts, and uncles do not qualify. If the relationship falls outside this list, the recipient owes 6.25% of the vehicle’s appraised value in sales tax. The county tax office verifies the relationship against the sworn affidavit, and misstating it on a notarized document carries legal consequences.

Documents You Need Before Going to the County Office

The Signed Title

The donor completes the Assignment of Title section on the back of the current Texas title. Enter the date of transfer, put “gift” or “$0” as the sales price, and record the odometer reading when required. Both donor and recipient sign.2Texas Department of Motor Vehicles. Buying or Selling a Vehicle Cross-outs and white-out are generally not accepted. If a mistake happens, the donor typically has to complete a separate affidavit of fact to correct it rather than editing the title.

Form 130-U

Form 130-U, the Application for Texas Title and Registration, is available from the TxDMV. It captures the VIN, make, model, body style, and both parties’ information, and both sign it.3Texas Department of Motor Vehicles. Application for Texas Title and/or Registration – Form 130-U Check the VIN character by character against the title. A single transposed digit will bounce the application.

Form 14-317 (Affidavit of Motor Vehicle Gift Transfer)

This is the form that unlocks the $10 rate. Both the donor and recipient must sign it, and both signatures must be acknowledged by a notary public or by a staff member at the county tax assessor-collector’s office.1Texas Comptroller. Motor Vehicle Tax Guide – Gift Tax The second option saves a step: if both parties show up together at the county office, staff can witness the signatures right there. The Comptroller also accepts faxed copies and notarizations performed by out-of-state notaries.

ID and Insurance

The recipient brings a government-issued photo ID and proof of current Texas liability insurance on the vehicle.2Texas Department of Motor Vehicles. Buying or Selling a Vehicle The state minimums are $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage.4Texas Department of Insurance. Tips to Help You Shop for Auto Insurance Most insurers give a grace period of 7 to 30 days to add a newly acquired vehicle to an existing policy; confirm with your carrier before the transfer date. The county will not process the title without proof of coverage.

Odometer Disclosure

Federal law requires an odometer reading on the title assignment for most vehicles, but older ones are exempt. For transfers in 2026, any vehicle with a model year of 2010 or earlier does not require a disclosure. Model year 2011 and later still do, up to the 20-year mark under the current federal rule. Vehicles over 16,000 pounds gross weight are exempt regardless of age.5eCFR. Title 49 Part 580 – Odometer Disclosure Requirements Even when it’s not legally required, recording the mileage accurately protects the recipient if they later sell the vehicle outside the family.

Filing at the County Tax Office

Either the donor or the recipient must bring the completed paperwork to the local county tax assessor-collector’s office in person. Mail and online filing are not available for a title transfer that uses a gift affidavit.1Texas Comptroller. Motor Vehicle Tax Guide – Gift Tax Filing must happen within 30 days of the transfer date shown on the title. After that, a $25 late fee applies. If 60 days pass without filing, an additional $25 penalty accrues every 30-day period (or partial period), up to a $250 maximum.6State of Texas. Texas Transportation Code 501.146 – Title Transfer, Late Fee

What You’ll Pay at the Counter

Most people spend somewhere between $90 and $120 for a standard passenger vehicle. Heavier trucks and specialty vehicles cost more because their registration fees are higher.

The county issues a receipt at the window, but the physical title arrives by mail. TxDMV asks you to allow at least 20 business days. If a lien exists, the new title goes to the lienholder rather than the owner.2Texas Department of Motor Vehicles. Buying or Selling a Vehicle Contact TxDMV directly if it hasn’t arrived within 30 business days.

Getting the Vehicle Home Without Plates

In a private-party transfer, the seller must remove the license plates and registration sticker from the vehicle.8Cornell Law Institute. 43 Texas Administrative Code 217.53 – Removal of License Plates and Registration Insignia upon Sale of Motor Vehicle The donor can transfer those plates to another vehicle in their name, keep them, or destroy them.9State of Texas. Texas Transportation Code 504.901 – Transfer and Removal of License Plates

That leaves the recipient with a car and no plates. TxDMV offers a free Vehicle Transit Permit you can print at permit.txdmv.gov. It’s good for five calendar days from issue and covers passenger cars and light trucks only. You get one permit per vehicle, and liability insurance must be active before you print it.10Texas Department of Motor Vehicles. Vehicle Transit Permit Plan to get to the county office and pick up new plates within that window.

If the Vehicle Has a Lien

A vehicle with an outstanding loan cannot simply be signed over. The lienholder’s name is on the title, and the county will not process a transfer without addressing it. In practice, one of three things has to happen: the donor pays off the loan and the lienholder releases the title, the recipient refinances the loan in their own name with the lender’s approval, or the lender agrees to add the recipient to the existing loan. Each option requires coordination with the lender before any paperwork reaches the county office. If the lien has already been satisfied but the title still shows it, the donor needs a lien release letter from the lender to include with the application.

Transferring a Vehicle After a Family Member’s Death

When the “gift” is really a transfer from someone who has passed away, the process depends on how the title was set up and whether the estate is going through probate.

Rights of Survivorship

If the deceased and another person previously signed a Rights of Survivorship agreement (Form VTR-122), ownership passes directly to the surviving co-owner without probate. The survivor files a new Form 130-U with a copy of the death certificate at the county tax office. If the title itself already carries a “Survivorship Rights” remark, that’s all you need. If not, bring the original signed VTR-122 as well.11Texas Department of Motor Vehicles. Rights of Survivorship Ownership Agreement for a Motor Vehicle – Form VTR-122

Affidavit of Heirship

With no survivorship agreement and no will, the vehicle can transfer through an Affidavit of Heirship (Form VTR-262). This route is available when no one files for probate or when a court determines that formal administration of the estate is unnecessary. Every legal heir must sign, and each signature must be notarized. The county office will also want the death certificate and any related court orders. Talking to an attorney about who qualifies as an heir under Texas intestacy law is worth the cost, since an error on the affidavit can stall the transfer for months.

Federal Gift Tax

The $10 Texas gift tax is a state motor vehicle tax. It has nothing to do with federal gift tax, which the IRS applies to any gift of value. For 2026, the annual federal gift tax exclusion is $19,000 per recipient.12Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 If the vehicle’s fair market value is $19,000 or less, no federal paperwork is required.

If the vehicle is worth more than $19,000, the donor must file IRS Form 709 by April 15 of the following year.13Internal Revenue Service. Gifts and Inheritances Filing the form doesn’t necessarily mean you owe federal tax. The amount above $19,000 counts against the donor’s lifetime gift and estate tax exemption, which is high enough that most people will never actually owe anything. Skipping the form when it’s required can still trigger IRS penalties, so check the vehicle’s value against the $19,000 threshold before assuming no filing is needed.

Vehicle Inspection Is No Longer Required

Texas eliminated mandatory safety inspections for non-commercial vehicles on January 1, 2025.14Texas Department of Public Safety. Vehicle Safety Inspection Changes Take Effect January 2025 You don’t need to have the vehicle inspected before titling or registering it. Commercial vehicles still require inspection, but a standard passenger car or light truck gifted between family members does not.