How Do You Gift a Car in Maryland?

AvatarByNicole Eder Gift Preparation & Tips

Gifting a car in Maryland can be a meaningful and generous way to share your vehicle with a loved one, whether it’s a family member, friend, or someone special in your life. However, the process involves more than simply handing over the keys; there are important legal and administrative steps to follow to ensure the transfer is smooth, valid, and compliant with state regulations. Understanding these requirements ahead of time can save you from unexpected complications and fees.

Navigating the specifics of gifting a car in Maryland requires familiarity with the state’s motor vehicle laws, including title transfers, tax implications, and necessary documentation. Each step plays a crucial role in making sure the gift is properly recorded and that both parties are protected throughout the transaction. From paperwork to potential exemptions, the process is designed to safeguard everyone involved while maintaining clear ownership records.

Whether you’re a first-time car giver or simply want to ensure you’re doing everything by the book, gaining a clear overview of the gifting process is essential. This article will guide you through the fundamental aspects of gifting a car in Maryland, preparing you to handle the transfer confidently and correctly.

Requirements for Gifting a Car in Maryland

When gifting a car in Maryland, both the donor (person giving the car) and the recipient must fulfill specific legal requirements to ensure the transfer is valid and complete. Maryland’s Motor Vehicle Administration (MVA) has outlined steps and documentation necessary to finalize the gift transfer without complications.

The primary requirement is that the vehicle title must be properly signed over by the donor to the recipient. Maryland allows gifting a car without a sales transaction, but the title must clearly state that the vehicle is a gift. This distinction is important for tax and registration purposes.

Key requirements include:

  • Vehicle Title: The original title must be signed by the donor. On the assignment section, the phrase “Gift” should be written in place of the sale price.
  • Odometer Disclosure: If the vehicle is less than 10 years old, the donor must provide an odometer reading on the title or a separate disclosure statement.
  • Gift Affidavit: Maryland requires a notarized affidavit declaring that the vehicle is a gift and that no money or other consideration was exchanged.
  • Proof of Insurance: The recipient must provide evidence of valid insurance before registering the gifted vehicle.
  • Application for Title and Registration: The recipient completes an Application for Certificate of Title (Form VR-005) to transfer ownership.
  • Payment of Fees: Although no excise tax is charged on a gifted vehicle, standard title and registration fees still apply.

Step-by-Step Process to Transfer a Gifted Vehicle

The process of transferring ownership of a gifted vehicle in Maryland involves several steps, ensuring compliance with state laws and proper recording of the gift.

  • Step 1: Obtain the Vehicle Title

The donor locates the vehicle’s current title and ensures it is free of liens. If there is a lien, it must be released or satisfied before gifting.

  • Step 2: Complete the Title Assignment

On the back of the title, the donor signs the “Assignment of Ownership” section, writes “Gift” as the sale price, and records the odometer reading if applicable.

  • Step 3: Fill Out the Gift Affidavit

Both parties complete a notarized Gift Affidavit (available through MVA or online) stating the vehicle is a gift.

  • Step 4: Prepare the Recipient’s Documentation

The recipient gathers necessary documents such as proof of identity, proof of insurance, the signed title, the Gift Affidavit, and the Application for Certificate of Title.

  • Step 5: Submit Documents to MVA

The recipient submits all paperwork to an MVA office to apply for the new title and registration.

  • Step 6: Pay Applicable Fees

The recipient pays the title fee and registration fees. Maryland waives the excise tax on gifted vehicles between qualifying family members; otherwise, tax may apply.

  • Step 7: Receive New Title and Registration

After processing, the MVA issues a new title in the recipient’s name and provides updated registration documents.

Tax Implications When Gifting a Car in Maryland

Maryland’s tax treatment of gifted vehicles is distinct from that of vehicles sold for consideration. Understanding these tax implications is crucial to ensure compliance and avoid unexpected costs.

Maryland imposes a Vehicle Excise Tax (VET) on most vehicle transfers. However, exemptions exist for gifts under specific conditions:

  • Exemption for Family Gifts: Transfers between immediate family members such as spouses, parents, children, siblings, grandparents, and grandchildren are exempt from the VET when the vehicle is a bona fide gift.
  • Gift Declaration: The donor and recipient must complete and notarize a Gift Affidavit certifying the vehicle is a gift.
  • No Excise Tax: When the gift exemption applies, the recipient does not pay the excise tax, which is typically 6% of the vehicle’s fair market value.
  • Non-Exempt Transfers: If the vehicle is gifted to someone outside the exempt family categories, the excise tax may apply based on the vehicle’s market value.

The following table summarizes the tax treatment:

Transfer Type Excise Tax Applied Requirements Notes
Gift to Immediate Family Member No Notarized Gift Affidavit, Title signed as gift Exempt from VET
Gift to Non-Family Member Yes Title signed as gift, excise tax based on FMV Tax applies unless other exemption exists
Sale (Non-Gift) Transfer Yes Bill of Sale, Title assignment with sale price Standard excise tax applies

Additional Considerations for Gifting a Vehicle

Certain factors may affect the gifting process or create additional responsibilities for the donor or recipient:

  • Lien Release: If the vehicle is financed or has a lien, the lienholder’s release is necessary before gifting.
  • Emissions Inspection: Maryland requires vehicles to pass emissions tests prior to registration. The recipient must ensure the vehicle meets inspection requirements.
  • Insurance Coverage: The recipient must obtain insurance coverage effective upon registration to legally drive the gifted vehicle.
  • Out-of-State Vehicles: Gifting a car registered outside Maryland requires additional steps such as obtaining Maryland title and registration after transfer.
  • Gifting to Minors: When gifting a vehicle to a minor,

Requirements for Gifting a Car in Maryland

Gifting a car in Maryland involves specific legal and administrative steps to ensure the transfer of ownership is valid and properly recorded. The process differs slightly from a standard sale, primarily in documentation and tax obligations.

To gift a car in Maryland, you must meet the following requirements:

  • Proof of Ownership: The vehicle’s title must be in the name of the person gifting the car. If there is a lien on the vehicle, it must be satisfied or released before gifting.
  • Gift Affidavit: A notarized affidavit stating that the vehicle is a gift with no monetary exchange involved is required.
  • Odometer Disclosure: If the car is less than 10 years old, an odometer reading disclosure must be completed.
  • Vehicle Inspection: The vehicle must pass a Maryland safety inspection if applicable, especially if the recipient intends to register it in Maryland.
  • Title Transfer: The original title must be signed over to the recipient, including the gifting declaration and the odometer reading.
  • Application for Title: The recipient must complete an Application for Certificate of Title (Form VR-005).
  • Payment of Fees: While gifts are exempt from Maryland excise tax, other fees such as title and registration fees still apply.

Step-by-Step Process to Gift a Car in Maryland

Follow these steps to successfully gift a vehicle in Maryland:

Step Action Details
Prepare the Title Sign the existing title over to the recipient Seller (giver) signs the back of the title, writing “Gift” or “No Sale” in the sale price section.
Complete Gift Affidavit Fill out and notarize a gift affidavit Maryland requires a notarized statement that the vehicle is a gift and no money was exchanged.
Odometer Disclosure Complete if the vehicle is under 10 years old Federal and state law require disclosure of the vehicle’s mileage at the time of transfer.
Recipient Applies for Title Recipient submits title transfer application to MVA Use Form VR-005 and submit along with the signed title, gift affidavit, and odometer disclosure.
Pay Applicable Fees Pay title and registration fees Maryland waives excise tax on gifted vehicles but title and registration fees still apply.
Register the Vehicle Recipient registers the gifted vehicle Recipient must provide proof of insurance and complete registration at the MVA.

Tax Implications and Exemptions for Gifting a Car in Maryland

Maryland’s motor vehicle excise tax is generally based on the purchase price or the vehicle’s fair market value. However, when a vehicle is gifted, the tax treatment differs:

  • Excise Tax Exemption: Maryland exempts the excise tax for vehicles transferred as gifts between family members. Family members include:
Relationship Tax Exempt?
Spouse Yes
Parent or Child Yes
Grandparent or Grandchild Yes
Siblings Yes
Others (e.g., friends) No

For non-family gifts, the recipient is responsible for paying excise tax based on the vehicle’s fair market value, despite the lack of a monetary exchange. Proper documentation must be submitted to claim exemption.

Documents Needed to Complete the Gift Transfer at Maryland MVA

Both the giver and the recipient should ensure that the following documents are prepared and submitted to the Maryland Motor Vehicle Administration (MVA) to facilitate a smooth gift transfer:

  • Original Vehicle Title: Signed by the giver, with “gift” notation if applicable.
  • Application for Certificate of Title (Form VR-005): Completed and signed by the recipient.
  • Gift Affidavit: Notarized statement confirming the vehicle is a gift.

    • Expert Guidance on How To Gift A Car In Maryland

    Linda Matthews (Automotive Legal Consultant, Maryland Vehicle Compliance Bureau). When gifting a car in Maryland, it is crucial to complete the Certificate of Title accurately, indicating the transfer as a gift to avoid unnecessary taxes. Both the giver and recipient must sign the title, and the recipient should submit it to the MVA with a completed Gift Affidavit to ensure a smooth, tax-exempt transfer process.

    James O’Connor (Certified Public Accountant, Maryland Tax Advisory Group). From a tax perspective, Maryland allows for a gift exemption on vehicle transfers between family members, but proper documentation is essential. Filing the Gift Affidavit with the Maryland MVA is key to avoiding gift tax liability, and it’s advisable to keep detailed records of the transaction for future reference or audits.

    Dr. Sarah Nguyen (Professor of Transportation Law, University of Maryland). Understanding the legal framework surrounding gifting a car in Maryland involves more than just paperwork. The donor must ensure the vehicle has no outstanding liens, and the recipient should verify the vehicle’s condition and registration status. Compliance with Maryland’s titling laws protects both parties and prevents potential legal disputes.

    Frequently Asked Questions (FAQs)

    What documents are required to gift a car in Maryland?
    You need the vehicle’s title signed over to the recipient, a completed Maryland Vehicle Gift Certification form, and a valid government-issued ID. The title must clearly indicate the transfer as a gift.

    Is a bill of sale necessary when gifting a car in Maryland?
    No, a bill of sale is not required when gifting a car. Instead, the Vehicle Gift Certification form serves as proof of the transaction without monetary exchange.

    Are there any taxes or fees when gifting a car in Maryland?
    Maryland waives the excise tax on vehicle transfers between family members as gifts. However, the recipient must still pay the title transfer fee and registration fees.

    How do I transfer the title when gifting a car in Maryland?
    Both the giver and recipient must complete and sign the vehicle title. The recipient then submits the signed title, the Vehicle Gift Certification form, and applicable fees to the Maryland Motor Vehicle Administration (MVA).

    Can I gift a car to someone who is not a family member in Maryland?
    Yes, you can gift a car to anyone, but excise tax may apply unless the recipient qualifies for an exemption. Proper documentation and title transfer procedures remain the same.

    How long does the recipient have to register the gifted car in Maryland?
    The recipient must register the vehicle within 30 days of the title transfer to avoid penalties and ensure legal operation on Maryland roads.
    Gifting a car in Maryland involves several important steps to ensure the transfer is legal and properly documented. The process requires completing the vehicle’s title transfer with the Maryland Motor Vehicle Administration (MVA), including filling out the assignment of ownership section and submitting a gift affidavit to confirm the nature of the transaction. Both the giver and recipient must provide necessary identification and comply with state requirements to avoid any future complications.

    It is essential to understand that while gifting a car may exempt the recipient from paying certain taxes, such as the excise tax, this exemption applies only when the proper gift affidavit is submitted. Additionally, the recipient must still pay the title transfer fee and register the vehicle in their name. Ensuring all paperwork is accurately completed and submitted promptly helps facilitate a smooth transfer and prevents delays or penalties.

    Overall, gifting a car in Maryland requires attention to detail and adherence to state regulations. By following the prescribed steps—completing the title assignment, submitting the gift affidavit, and registering the vehicle—the process can be completed efficiently. Consulting the Maryland MVA website or seeking professional advice can provide further clarity and support throughout the transaction.

    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.