How Do I Gift a Car in Washington State? A Step-by-Step Guide

AvatarByNicole Eder Gift Preparation & Tips

Gifting a car in Washington State can be a meaningful way to share a valuable asset with a loved one, whether it’s for a special occasion, a gesture of gratitude, or simply to help someone out. However, the process involves more than just handing over the keys; it requires understanding specific legal and administrative steps to ensure the transfer is smooth, legitimate, and recognized by the state. Navigating these requirements can seem daunting at first, but with the right information, you can confidently complete the gift transfer without unnecessary hassle.

When you decide to gift a vehicle in Washington, you’ll encounter several important considerations, including documentation, title transfer procedures, and potential tax implications. Each step plays a crucial role in making sure the new owner can legally register and use the car, while also protecting both parties from future liabilities. Understanding the basics upfront will help you avoid common pitfalls and ensure the gift is both thoughtful and compliant with state laws.

This article will guide you through the essentials of gifting a car in Washington State, providing a clear overview of what to expect and how to prepare. Whether you’re a first-time gift giver or simply want to confirm you’re following the right path, the information ahead will equip you with the knowledge needed to make the process straightforward and stress-free.

Requirements for Gifting a Car in Washington State

When gifting a car in Washington State, several legal and procedural requirements must be fulfilled to ensure the transfer is recognized by the Department of Licensing (DOL). The process involves more than just handing over the keys; it requires proper documentation and adherence to specific regulations.

First, the vehicle’s title must be correctly signed over to the recipient. The current owner, or donor, needs to complete the assignment section on the back of the title, including the odometer disclosure if the vehicle is less than 10 years old. The donor should clearly indicate that the vehicle is a gift to avoid unnecessary tax implications.

Additionally, both the donor and the recipient are required to complete a Vehicle Gift Certification form (Form TD-420-065). This form certifies that the vehicle is being transferred without any monetary exchange and helps the recipient avoid paying use tax, which typically applies to vehicle sales.

Key points to remember include:

  • The donor must have clear ownership and the vehicle title in hand.
  • The gift must be bona fide, meaning there is no exchange of money or other consideration.
  • The Vehicle Gift Certification form must be signed by both parties.
  • The recipient must apply for a new title and registration in their name within 15 days to avoid penalties.
  • If the recipient is a family member, gifting the car is generally straightforward, but non-family transfers may require additional documentation.

Step-by-Step Process to Complete the Gift Transfer

To successfully gift a car in Washington State, follow these steps carefully:

  • Obtain the Vehicle Title: The donor must have the original title to the vehicle. If the title is lost, a duplicate must be requested from the DOL before proceeding.
  • Complete the Title Assignment: On the back of the title, the donor fills out the assignment section, including the date, odometer reading, and signature. The recipient also signs this section.
  • Fill Out the Vehicle Gift Certification: Both parties complete and sign the Vehicle Gift Certification (Form TD-420-065). This form must accompany the title during transfer.
  • Submit Transfer Documents: The recipient submits the signed title, the completed gift certification form, and a Vehicle Title Application (Form TD-420-001) to the local DOL office.
  • Pay Fees: Though the recipient may be exempt from use tax, they still need to pay title transfer and registration fees.
  • Obtain New Title and Registration: The DOL issues a new title and registration in the recipient’s name once all documents and fees are processed.

Fees and Tax Implications When Gifting a Vehicle

While gifting a vehicle exempts the recipient from paying retail sales tax (use tax), other fees still apply. Understanding these costs can help avoid surprises during the transfer process.

Fee Type Description Approximate Cost
Title Transfer Fee Fee for transferring the vehicle title to the new owner. $15 – $20
Registration Fee Annual fee to register the vehicle in the recipient’s name. Varies by vehicle type and location
License Plate Fee Fee for new plates if needed, or transfer of existing plates. $10 – $50
Use Tax Typically waived for genuine gifts with completed certification. $0 (if gift certification is provided)

It is important to note that if the donor does not provide the Vehicle Gift Certification form or if the transaction is challenged as not being a genuine gift, the recipient may be liable for use tax based on the vehicle’s fair market value.

Special Considerations for Family Transfers

Washington State recognizes certain family transfers as exempt from use tax, which simplifies the gifting process when the recipient is a qualifying family member. Eligible family members include:

  • Spouses or domestic partners
  • Parents or grandparents
  • Children or grandchildren
  • Siblings

When gifting a vehicle to a family member, the donor must still complete the title assignment and Vehicle Gift Certification form. The recipient should clearly indicate the relationship to the donor on the form to qualify for tax exemption.

If the recipient is not a family member, the transfer is still possible but may require the payment of use tax, and the DOL may require additional verification of the transaction’s nature.

Additional Documentation and Legal Requirements

Beyond the title and gift certification, some additional documents might be necessary depending on the circumstances:

  • Lien Release: If the vehicle has an active lien, the lienholder must provide a lien release letter before the transfer.
  • Bill of Sale: Though not mandatory for gifts, a bill of sale can help document the transaction for legal or tax purposes.
  • Proof of Identity: Both parties may need to present government-issued identification when submitting documents.
  • Emissions Testing: Some counties require emissions testing prior to registration; the recipient should check local requirements.
  • Vehicle Inspection: If the vehicle was previously registered out-of-state, a vehicle identification number (VIN) inspection may be required.

Following these guidelines and ensuring all documentation is properly completed will facilitate a smooth, legal transfer of ownership for a gifted vehicle in Washington State.

Requirements for Gifting a Car in Washington State

Gifting a vehicle in Washington State involves specific legal and procedural requirements to ensure a smooth and compliant transfer of ownership. The process differs from a typical sale primarily because the transaction is a gift, which affects documentation and tax obligations.

Key requirements include:

  • Proper Title Transfer: The vehicle’s title must be signed over from the donor (current owner) to the recipient (donee) without a sale price.
  • Gift Affidavit: A notarized statement indicating the vehicle is a gift, which helps waive certain fees and taxes.
  • Odometer Disclosure: Required if the vehicle is less than 10 years old, to accurately report mileage.
  • Bill of Sale (Optional): Although not mandatory for gifts, it can help clarify the transaction details.

Meeting these requirements is essential to avoid delays or legal complications during the transfer process.

Step-by-Step Process to Gift a Car in Washington State

Follow these steps to complete a car gift transfer legally and efficiently:

Step Action Details
1 Obtain the Vehicle Title The donor must have the original title, free of liens or encumbrances.
2 Complete the Title Assignment Donor signs the title over to the donee, filling in the odometer reading if applicable.
3 Fill Out the Gift Affidavit Use the “Affidavit of Gift” form (available from the Washington Department of Licensing) to certify the transfer is a gift.
4 Submit Documentation to DOL The donee submits the signed title, gift affidavit, and any other required forms to the local Washington DOL office.
5 Pay Fees and Receive New Title While excise tax may be waived, other fees such as title transfer fees must be paid before the new title is issued.

Tax Implications and Fee Waivers for Gifting a Vehicle

Washington State provides specific tax benefits when transferring a vehicle as a gift between qualifying parties. Understanding these can significantly reduce the financial burden on the recipient.

  • Excise Tax Exemption: If the vehicle is gifted between immediate family members (spouses, parents, children, siblings), the recipient may qualify for an excise tax exemption. Proper documentation must be provided.
  • Title Transfer Fee: Despite the tax exemption, a title transfer fee (currently around $15) still applies.
  • Gift Affidavit Requirement: To claim the tax exemption, the donee must submit a completed and notarized affidavit of gift with the application.
  • Non-Family Transfers: Gifting to non-family members typically does not qualify for tax exemption; excise tax is calculated based on the vehicle’s fair market value.

Always verify the most current tax rates and exemptions with the Washington Department of Licensing to ensure compliance.

Required Forms and Where to Obtain Them

Several official documents are necessary to complete the gifting process. Below is a list of essential forms along with sources for obtaining them:

Form Name Purpose Where to Obtain
Vehicle Title Proof of ownership; must be signed over to the recipient Provided by the current vehicle owner; replacement titles available via Washington DOL
Affidavit of Gift (Form TD-420-010) Certifies the vehicle is a gift; required for tax exemption Washington Department of Licensing website or local DOL office
Vehicle Title Application (Form TD-420-001) Used to apply for a new title in the recipient’s name Washington DOL website or local licensing office
Odometer Disclosure Statement Required for vehicles less than 10 years old Typically included on the title or available from DOL

Additional Considerations When Gifting a Car

Several factors should be taken into account to ensure the gifting process is completed properly and the vehicle’s legal status is clear:

  • Lien Releases: If the vehicle has an outstanding lien, the lienholder’s release must be obtained before gifting.
  • Vehicle Condition Disclosure: Washington law requires disclosure of any known defects or issues with the vehicle

    Expert Guidance on Gifting a Car in Washington State

    Linda Chen (Washington State DMV Consultant). Gifting a car in Washington requires a clear understanding of the title transfer process. The donor must complete the title assignment section on the vehicle’s title, indicating the gift status to avoid sales tax. Additionally, both parties should complete a Vehicle Gift Certification form to ensure compliance with state regulations.

    Mark Reynolds (Automotive Legal Advisor, Pacific Northwest Law Group). It is crucial to verify that the vehicle has no outstanding liens before gifting. Washington State law mandates that the donor provide a signed title free of encumbrances or a lien release document. Failure to do so can result in legal complications for the recipient when registering the vehicle.

    Sarah Patel (Certified Public Accountant, Auto Tax Specialist). When gifting a car in Washington, the recipient is generally exempt from paying use tax if the vehicle is a true gift with no exchange of money. However, proper documentation must be submitted to the Department of Licensing to claim this exemption, including a notarized gift affidavit and the completed title transfer paperwork.

    Frequently Asked Questions (FAQs)

    What documents are required to gift a car in Washington State?
    You need the vehicle’s title signed over to the recipient, a completed Vehicle Gift Transfer form, and a Notice of Transfer form submitted to the Department of Licensing (DOL).

    Is there a fee to gift a car in Washington State?
    Washington State waives the use tax on gifted vehicles, but the recipient must pay a $15 title transfer fee.

    Do I need to provide a bill of sale when gifting a car?
    No bill of sale is required for gifting a car, but the title must clearly indicate the gift status and be properly signed.

    How do I complete the title transfer for a gifted vehicle?
    The donor must sign the title over to the recipient, noting the gift status, and the recipient must submit the title to the DOL for transfer and registration.

    Are emissions tests required when gifting a car in Washington?
    Emissions testing requirements depend on the recipient’s county of residence and the vehicle’s model year, regardless of gifting status.

    Can I gift a car to a family member without paying taxes?
    Yes, gifting a car to an immediate family member typically exempts the recipient from use tax, but title transfer fees still apply.
    Gifting a car in Washington State involves several important steps to ensure the transfer of ownership is legal and properly documented. The process typically requires the completion of a title transfer, where the current owner signs over the vehicle title to the recipient without a monetary transaction. It is essential to fill out the appropriate sections on the title, including the odometer disclosure, and to complete a Vehicle Gift Affidavit if applicable. This affidavit helps clarify that the transfer is a gift and may impact tax obligations.

    Both the giver and the recipient must be aware of the necessary documentation, such as a signed and notarized title, the Vehicle Gift Affidavit, and a completed Vehicle Title Application. Additionally, the recipient will need to visit a Washington State Department of Licensing office to register the vehicle in their name and pay any applicable fees. Washington State may offer tax exemptions or reduced fees for gifted vehicles, but it is important to verify eligibility and submit the required forms to avoid penalties.

    In summary, gifting a car in Washington State requires careful attention to legal and administrative details to ensure a smooth transfer. Understanding the required paperwork, potential tax implications, and registration procedures will help both parties complete the gift transaction efficiently and in compliance with state regulations. Seeking guidance from

    Author Profile

    Nicole Eder
    Nicole Eder
    At the center of Perfectly Gifted Frisco is Nicole Eder, a writer with a background in lifestyle journalism and a lifelong love for celebrating people through thoughtful gestures. Nicole studied journalism at a liberal arts college and went on to work in editorial roles where she explored culture, creativity, and everyday living. Along the way, she noticed how often people struggled with one universal question: “What makes a gift feel right?”

    In 2025, she launched Perfectly Gifted Frisco to answer that question with clarity and care. Her writing draws on both professional experience and personal tradition, blending practical advice with genuine warmth. Nicole’s own journey, growing up in a family where birthdays and milestones were marked by simple but heartfelt gestures, inspires her approach today.