Wondering how to gift a car in Washington State without getting tangled in paperwork or surprise taxes? You’re not alone. Many people find the process confusing and worry about missing a critical step that could lead to penalties.
To gift a car in Washington State, the donor signs the title to release ownership, and the recipient must submit a completed Vehicle Title Application and the signed title to a licensing office within 15 days to transfer ownership tax-free if it’s between immediate family members. This process is straightforward when you know the rules.
Based on current Washington State Department of Licensing (DOL) procedures, this guide provides the verified steps for a smooth transfer. You’ll discover exactly how to handle the paperwork, qualify for tax exemptions, and avoid common penalties. This ensures your gift is a blessing, not a bureaucratic burden.
Key Facts
- Critical 15-Day Deadline: The recipient must file the title transfer paperwork within 15 days of receiving the car. On day 16, a $50 penalty is automatically applied, increasing by $2 per day up to a maximum of $125.
- Tax Exemption is Specific: Only gifts between immediate family members (spouses, parents/stepparents, children/stepchildren, siblings, grandparents, and grandchildren) are exempt from sales and use tax.
- A $1 Sale is Not a Gift: Selling a car for a nominal amount like $1 is considered a sale. The Department of Revenue will likely charge use tax based on the vehicle’s full fair market value, not the token sale price.
- Donor Reporting is Mandatory: The person gifting the car must report the transfer to the DOL within 5 days. This is a critical step to release them from any future liability for the vehicle.
- License Plates Stay with the Donor: In Washington, license plates are registered to the owner, not the vehicle. The donor must remove their plates before the recipient takes possession of the car.
How to Gift a Car in Washington State? (The 2026 Official Process)
Gifting a car in Washington State is a two-part process governed by the Department of Licensing (DOL) that must be completed within a strict 15-day window. The donor (giver) officially releases ownership by signing the title, and the recipient (receiver) is responsible for submitting all paperwork to a vehicle licensing office to finalize the transfer. Following this verified procedure ensures the new ownership is legally recorded and helps you avoid costly penalties.
Think of this as a “15-Day Countdown.” From the moment the recipient takes possession of the vehicle, the clock starts ticking. This state-mandated deadline is the most critical part of the entire process. While gifting a car is much simpler than selling one, missing this window results in automatic late fees.
This guide breaks down the entire process into clear, actionable phases for both the donor and the recipient. We will cover the required documents, tax exemption rules, and the step-by-step actions you need to take to complete the transfer correctly and on time.
Do You Pay Sales Tax on a Gifted Car in Washington?
You are exempt from paying sales tax on a gifted car in Washington State if the vehicle is a bona fide gift between immediate family members. A “bona fide gift” is a true gift, meaning no payment or consideration of any kind is exchanged for the vehicle. If you receive a car from a qualifying family member, you will not have to pay the state’s use tax, which is the equivalent of sales tax for items brought into or used in the state.
This tax exemption is a significant financial benefit, but it is strictly defined. According to the Washington State Department of Revenue and the Revised Code of Washington (RCW 82.12.010), “immediate family” is limited to the following relationships:
- Spouse or domestic partner
- Parent or stepparent
- Child or stepchild
- Sibling
- Grandparent
- Grandchild
Pro Tip: Cousins, aunts, uncles, nieces, nephews, and friends are not considered immediate family for this tax exemption.
If you receive a car as a gift from someone outside this specific list, you are required to pay use tax. The tax will be calculated based on the vehicle’s fair market value at the time of the transfer, not on a value of zero. The Department of Licensing will assess this value using standard industry guides.
What Documents Are Required for a Gift Car Title Transfer in WA?
To successfully transfer a gifted car in Washington, the recipient needs a core package of documents: the original signed title, a completed Vehicle Title Application, a statement confirming the gift, and payment for the fees. Having these items prepared before visiting a licensing office is the key to a quick and seamless process. Missing even one piece of paper can result in a rejected application and a wasted trip.
Here is a clear checklist of the documents you will need to gather.
| Document Name | Official Form # (if applicable) | Purpose & Key Details |
|---|---|---|
| Vehicle Title | N/A | The original paper or electronic title. Must be signed by the donor(s) to release interest. |
| Vehicle Title Application | TD-420-001 | The main form for the recipient to apply for a new title in their name. |
| Bill of Sale or Gift Statement | N/A | Proves the transfer. Must state the purchase price as “GIFT” or “$0” for tax exemption. |
| Odometer Disclosure Statement | N/A (Part of Title) | Required for most vehicles less than 20 years old. Must be completed on the title or a separate federal form. |
Pro Tip: From our experience, the most common cause for delay is an improperly signed title. Ensure every person listed as a “Registered Owner” on the front of the title signs in the “Release of Interest” section.
What Are The Steps for Gifting a Car? (The 15-Day Countdown)
The gifting process is a two-part action that must be completed within 15 days. The first part involves the donor preparing the paperwork, and the second part requires the recipient to file that paperwork with the state. By clearly dividing responsibilities, you can ensure no steps are missed.
How Should the Donor (Giver) Prepare the Vehicle Transfer?
As the person giving the car, your role is to legally release your ownership so the recipient can claim it. This involves three simple but critical tasks.
- Sign the Title Correctly: Locate the “RELEASE OF INTEREST” or “Registered Owner(s) Signature(s)” section on the back of the Washington vehicle title. Sign your name exactly as it appears on the front of the title. If there are two owners listed with “AND” between the names, both must sign. If it says “OR,” only one owner needs to sign.
> Common Mistake: Do not use white-out or cross out information on the title. Any alterations can void the document, requiring a lengthy and costly replacement process. - Complete the Odometer Reading: For any vehicle less than 20 years old, you must enter the exact mileage in the Odometer Disclosure section on the title. Do not include tenths of a mile. This is a federal requirement.
- Create a Bill of Sale or Gift Statement: While a simple piece of paper works, using a formal Bill of Sale is best practice. It should include the vehicle’s year, make, model, and Vehicle Identification Number (VIN). Most importantly, in the purchase price field, you must write “GIFT” or “$0.00“. Both the donor and recipient should sign this document.
How Does the Recipient (Receiver) Finalize the Transfer?
Once the donor has completed their part, you, the recipient, have 15 days to finalize the transfer and get the car legally in your name.
- Visit a Vehicle Licensing Office: You can go to a county auditor’s office or a privately-owned vehicle licensing sub-agent.
> Time-Saver Tip: Consider visiting a privately-owned licensing sub-agent. While they charge a small service fee, they often have much shorter wait times than county auditor offices. - Submit Your Document Package: Hand the agent your completed paperwork bundle. This includes the original title signed by the donor, your filled-out Vehicle Title Application (Form TD-420-001), and the Bill of Sale or gift statement.
- Pay All Applicable Fees: You will need to pay for the title transfer and new registration. The standard title transfer fee is $15.50 as of 2026, but additional registration fees, plate fees, and local taxes will apply. Be prepared for a total cost between $100 and $200. You will leave the office with new license plates and a temporary registration. The official new title will arrive in the mail in 8-10 weeks.
How Can You Avoid Common Penalties and Mistakes?
The most common mistake when gifting a car in Washington is missing the 15-day transfer deadline, which triggers an immediate $50 penalty. However, other errors can also derail the process, costing you time and money. Our practical experience shows that being aware of these pitfalls is the best way to ensure a smooth transfer.
Here are the top mistakes to avoid:
- ⚠️ Missing the 15-Day Deadline: This is not flexible. The penalty starts at $50 on day 16 and increases by $2 every day thereafter, up to a maximum penalty of $125. File on time.
- ⚠️ Submitting an Altered Title: Any use of white-out, scribbles, or cross-outs on the title will void the document. If you make a mistake, you must stop and apply for a duplicate title.
- ⚠️ Ignoring an Active Lien: A vehicle with an outstanding loan cannot be gifted. A “lien” is a legal claim held by a lender. The loan must be fully paid off and the lienholder must release their interest before the title can be transferred.
- ⚠️ Forgetting the “Report of Sale”: The donor is legally required to report the transfer to the DOL within 5 days. This is what officially releases them from liability for parking tickets, towing fees, or accidents after the car has been gifted.
- ⚠️ Misunderstanding “Fair Market Value”: If you receive a gift from a non-family member (like a friend), you cannot declare a $0 value for tax purposes. The state will charge you use tax based on the car’s standard market value.
What Is The Difference Between a Gift and a Low-Value Sale in WA?
A gifted car is a transfer with no money exchanged, while a low-value sale involves payment, even just $1. This distinction is critical because the Washington Department of Revenue treats them very differently for tax purposes. Many people mistakenly believe “selling” a car to a friend for $1 is a smart way to handle the paperwork, but it often leads to an unexpected tax bill.
The state’s primary concern is collecting use tax. A true gift between immediate family members is one of the few transfers exempt from this tax. A low-value sale, however, is a red flag for tax auditors.
Here is a direct comparison to clarify the differences:
| Feature | True Gift (to Family) | Low-Value Sale (e.g., $1 to a Friend) |
|---|---|---|
| Taxable? | No, exempt from sales/use tax. | Yes. Use tax is charged. |
| Tax Basis | N/A | The vehicle’s Fair Market Value, not the $1 price. |
| Required Proof | Bill of Sale stating “GIFT” or $0. | Bill of Sale stating the price (e.g., $1). |
| DOL Scrutiny | Low. Standard for family transfers. | High. The DOL will likely flag it for a use tax review. |
| Best For | Transferring to a spouse, child, parent, etc. | Not recommended. A true gift (if no money is exchanged) or a fair market sale is better. |
Warning: Selling a car to a friend for $1 does NOT avoid taxes and can lead to an unexpected tax bill for the recipient based on the car’s actual value.
FAQs About how to gift a car in washington state
Can I gift a car with a lien on it in WA?
No, you cannot transfer the title of a car with an active lien. The lienholder (the bank or lender) has a legal claim to the vehicle until the loan is fully paid off. You must first pay off the loan and have the lienholder release their interest and provide you with a clean title before you can gift the vehicle.
Do both the donor and recipient need to be present at the licensing office?
No, only the recipient needs to go to the vehicle licensing office. The donor’s primary job is to properly sign the title to release their ownership. As long as the recipient has the signed title and all other required, completed forms, they can finalize the transfer on their own.
Can the recipient keep the donor’s old license plates?
No, in Washington, license plates stay with the seller/donor. The donor should remove their plates from the vehicle before the recipient takes possession. The recipient will be issued new license plates when they register the vehicle in their name at the licensing office.
What happens if the original car title is lost?
The current owner (the donor) must apply for a duplicate title before they can gift the car. You cannot transfer ownership without the original title. The donor can apply for a duplicate title online, by mail, or in person at a vehicle licensing office. This process can take several weeks, so plan accordingly.
Does a gift statement need to be notarized in WA?
No, a simple written statement or Bill of Sale declaring the vehicle is a gift does not need to be notarized in Washington. However, if you are using a specific affidavit form in place of a standard title release, that form may require a notarized signature. For a standard gift, a simple signed statement is sufficient.
Can I gift a car to my child who lives in another state?
Yes, but the process will be governed by the child’s home state. You would follow Washington’s rules to release your interest on the title. Your child would then need to follow their state’s laws for titling, registration, and taxes. It’s often simpler for them to handle all the paperwork in their state of residence.
How much does it cost to transfer a gifted car title in WA?
The base title transfer fee is $15.50 as of 2026, but the total cost is higher. You will also have to pay registration fees (which vary by vehicle weight and location), license plate fees, and potentially other local fees. Expect the total to be between $100 and $200, depending on your specific vehicle and location.
How do I report that I’ve gifted a vehicle to the WA DOL?
The donor must report the transfer of ownership to the DOL within 5 days. This is a critical step that releases you from liability. You can do this online through the DOL’s website by “reporting a sale” or by mailing in the bottom portion of the vehicle title. This is officially called “reporting the sale,” even for a gift.
Is an emissions test required for a gifted car in WA?
As of January 1, 2020, Washington State no longer requires emissions testing in any county. Therefore, you do not need to worry about getting an emissions test for a gifted vehicle before transferring the title, regardless of the vehicle’s age or where it will be registered in the state.
Can I gift a car that is non-operational?
Yes, you can gift a non-operational vehicle. The title transfer process is the same regardless of whether the car runs. The recipient will still need to transfer the title within 15 days to avoid penalties, but they can choose not to register it (i.e., get tabs) until it is operational and they plan to drive it on public roads.
Key Takeaways: How to Gift a Car in Washington State
- The 15-Day Deadline is Critical: You must transfer the title within 15 days of receiving the vehicle. On day 16, a $50 penalty is applied, which increases by $2 each day, up to a maximum of $125.
- Tax Exemption is for Immediate Family Only: A car gift is only exempt from sales/use tax if it’s between immediate family members (spouses, parents, children, siblings, grandparents, grandchildren). Gifts to friends or other relatives are taxed on the car’s fair market value.
- A $1 Sale is Not a Gift: Selling a car for a nominal amount like $1 is considered a sale, not a gift. The WA Department of Revenue will disregard the $1 price and charge the recipient use tax based on the vehicle’s full fair market value.
- The Donor Signs, The Recipient Files: The giver’s main job is to sign the title to release ownership. The receiver is responsible for taking all completed paperwork to a licensing office to finalize the transfer.
- Plates Stay with the Donor: In Washington, license plates are tied to the owner, not the vehicle. The donor must remove their plates before handing over the car. The recipient will get new plates during registration.
- Required Documents Are Non-Negotiable: You absolutely must have the original, properly signed title and a completed Vehicle Title Application (Form TD-420-001). A Bill of Sale stating “GIFT” is essential for the tax exemption.
- The Donor Must Report the Transfer: Within 5 days of the gift, the donor must report the transfer to the DOL online or by mail. This is a crucial step to release them from any future liability for the vehicle.
Final Thoughts on Gifting a Car in Washington State
Gifting a car in Washington State is a generous act that can be completed without stress or confusion. While the state has specific rules, they are not complicated. The entire process hinges on three key elements: correctly signing the title, respecting the 15-day filing deadline, and understanding the strict definition of “immediate family” for tax exemptions.
By following the steps outlined in this guide, you have all the information needed to navigate the paperwork confidently. You can ensure the transfer is legal, avoid all penalties, and take full advantage of the tax benefits available to families. This allows the gift to be exactly what it was intended to be: a positive and helpful gesture, free from any bureaucratic headaches.
