How to Gift a Car in Texas in 2026

A gift transfer of a motor vehicle in Texas involves conveying ownership between an eligible donor and recipient without monetary consideration. The process requires completion of the Affidavit of Motor Vehicle Gift Transfer (Form 14-317) and the Application for Texas Title and/or Registration (Form 130-U), both submitted to the county tax assessor-collector's office.

How Does Gifting a Car in Texas Work?

In Texas, the gift transfer process begins with the donor and recipient completing the required Affidavit of Motor Vehicle Gift Transfer (Form 14-317). This affidavit must be notarized or signed in the presence of a county tax assessor-collector official. Both the donor and recipient must appear in person or provide valid notarized signatures by a notary public or authorized representative. Once the affidavit is completed, the recipient applies for title and registration by submitting the affidavit, the Application for Texas Title and/or Registration (Form 130-U), and supporting documents to the county tax assessor-collector's office. The recipient must provide proof of liability insurance meeting Texas minimum coverage limits and pay the applicable $10 gift tax, title application fee, registration fee, and any additional local fees. Vehicles are required to be titled in the recipient's name within 30 days from the date of transfer.

Texas Car Gifting Rules You Should Know

Title Status

All motor vehicles that operate on Texas roads generally require a certificate of title. The title is the legal document establishing ownership and must be transferred from the donor to the recipient. Certain vehicles may be exempt from title requirements, including farm equipment, golf carts, and other specialized vehicles not designed for highway transportation. A vehicle that previously held a title in another state or was owned by a previous Texas owner must have the title properly transferred to establish the recipient's ownership. The recipient's name must appear on the new Texas certificate of title before the vehicle may be registered.

License Plates

When a vehicle is transferred, the donor retains ownership of the current license plates. The donor may transfer the plates to another vehicle the donor owns or surrender the plates. Texas allows the transfer of standard license plates to a different vehicle without additional charge at the county tax assessor-collector's office. If the donor surrenders the plates, the recipient will be issued new registration and a new license plate during the registration process. The donor must notify the county tax assessor-collector if the plates are being removed from the vehicle.

Taxes and Fees

A gift tax of $10 is assessed on the recipient of a motor vehicle transferred as a gift from an eligible donor. The gift tax is the sole motor vehicle tax due on a gift transfer that qualifies under the eligible party rules. No sales tax is imposed on a qualifying gift transfer. The recipient must pay the $10 gift tax to the county tax assessor-collector at the time of title application. In addition to the gift tax, the title application fee, registration fees, and any applicable local fees must be paid.

Step-By-Step Process To Gift a Car in Texas

Step 1: Verify Eligible Donor-Recipient Relationship

The Affidavit of Motor Vehicle Gift Transfer (Form 14-317) requires that the donor be from an eligible category. Eligible donors include spouses (separate property), parents, stepparents, grandparents, grandchildren, siblings, guardians, and certain trusts or nonprofit organizations. Verify the relationship qualifies to ensure the $10 gift tax applies under Texas Tax Code Section 152.025; otherwise, the transfer may be treated as a sale subject to standard presumptive value tax.

Step 2: Verify the Vehicle Title

Obtain the current title certificate for the vehicle. Confirm that the vehicle is not subject to a lien or outstanding loan. If a lien exists, the lienholder must release and sign the lien release before the gift can be completed. Verify that the donor's name on the title matches exactly as it will be used to sign the affidavit.

Step 3: Complete the Affidavit of Motor Vehicle Gift Transfer

Both the donor and recipient must complete the Affidavit of Motor Vehicle Gift Transfer (Form 14-317). The affidavit requires the vehicle identification number (VIN), year, make, model, the names and addresses of both donor and recipient, and the relationship between the parties. Each party must sign the affidavit in the presence of either a notary public or a county tax assessor-collector official. An online notary authorized by the Texas Secretary of State may also notarize the signatures. If one party cannot be present, a notarized signature may be reproduced or transmitted by fax, provided a power of attorney is attached if necessary.

Step 4: Complete the Application for Texas Title and/or Registration

The recipient must complete Form 130-U (Application for Texas Title and/or Registration) with the vehicle description, the recipient's identification information, the vehicle's odometer reading, and the $10 gift tax notation. The recipient must sign the certification section confirming that all information provided is true. Ensure that "Title & Registration" is selected on the application.

Step 5: Obtain Proof of Liability Insurance

The recipient must provide proof of liability insurance that meets Texas minimum coverage requirements. Texas requires minimum liability coverage of $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 for property damage. The insurance policy must be in effect at the time of title application and must list the recipient as the owner of the vehicle.

Step 6: Submit Documents to County Tax Assessor-Collector

The recipient must file in person at the county tax assessor-collector's office with the completed Affidavit of Motor Vehicle Gift Transfer (Form 14-317), Application for Texas Title and/or Registration (Form 130-U), the original title (or a faxed copy), proof of liability insurance, valid photo identification, and payment of all applicable fees and taxes. The filing must occur within 30 days from the date of transfer to avoid delinquent transfer penalties.

Step 7: Pay All Applicable Fees and Taxes

At the county tax assessor-collector's office, the recipient must pay the $10 gift tax, title application fee ($28 or $33), registration fee (approximately $78.25 for a passenger vehicle plus local fees), and any applicable county-specific fees. The total amount will vary by county. County tax assessor-collector offices have fee schedules available on their websites or by phone.

Step 8: Receive Title and Registration

Once all documents are filed and fees are paid, the county tax assessor-collector will process the application and issue a new Texas certificate of title in the recipient's name. The recipient will receive a registration receipt and new license plates if applicable. If the vehicle is registered in an emissions-compliant county, an emissions inspection may be required. Vehicle safety inspections are no longer required for non-commercial vehicles as of January 1, 2025.

Documents Needed for Gifting a Car in Texas

• Current certificate of title in the donor's name, signed by the donor
• Affidavit of Motor Vehicle Gift Transfer (Form 14-317), completed and notarized by both donor and recipient, or signed in the presence of a county tax assessor-collector official
• Application for Texas Title and/or Registration (Form 130-U), completed and signed by the recipient
• Valid photo identification of the recipient (such as a driver's license, passport, or military ID)
• Proof of liability insurance in the recipient's name meeting Texas minimum coverage limits
• Proof of emissions inspection if the vehicle is registered in an emissions-compliant county
• Any lien release documents if a loan or secured interest exists on the vehicle
• Proof of the donor's name and address for notarization purposes if the donor is not present at filing

Applicable Fees and Taxes When Gifting a Car in Texas

The recipient should contact the appropriate county tax assessor-collector office to obtain the exact total cost of the transfer, as county-specific fees vary by location. All applicable fees and the $10 gift tax must be paid to the county tax assessor-collector at the time of title application. Failure to apply for the title within 30 days of the transfer date may result in escalating delinquent transfer penalties.

Contact Information

Texas Department of Motor Vehicles
4000 Jackson Avenue, Austin, TX 78731
Phone: (888) 368-4689
Official Website: Texas Department of Motor Vehicles