How to Gift a Car in Virginia in 2026
Gifting a motor vehicle in Virginia involves transferring legal title from the donor to the recipient through the same registration and titling system used for all other ownership transfers. The donor must properly assign the title to the recipient, who then applies for a new Virginia title and registration. The process requires completing required forms, paying applicable fees, and complying with registration deadlines to ensure the recipient may legally operate the vehicle on public roads.
How Does Gifting a Car in Virginia Work?
Transferring a vehicle as a gift in Virginia follows the standard ownership transfer process outlined by the Virginia Department of Motor Vehicles (DMV). When a motor vehicle is gifted, the donor assigns title by completing the title assignment section on the paper certificate of title and writing "GIFT" or "0" in the sale price field. The recipient then submits the assigned title to the Virginia DMV along with an application for title and registration, proof of liability insurance, and applicable fees and taxes.
Virginia requires that all transfers of vehicle ownership involve a paper certificate of title unless the vehicle qualifies for the electronic titling program. However, if the recipient is claiming a sales and use tax exemption, the transfer cannot use the electronic titling program and must be completed in person, by mail, or through an appointment at a Virginia DMV customer service center. For gift transfers that do not qualify for electronic titling, the recipient must submit documentation in person, by mail, or through an appointment at a Virginia DMV customer service center.
Virginia Car Gifting Rules You Should Know
Title Status
A certificate of title requirement applies to virtually all motor vehicles registered in Virginia. The Virginia DMV issues either a paper title or an electronic title record; if electronic titling is used, the DMV retains the record, and the owner may request a printed title at any time. When a vehicle is gifted, the transfer generally requires a paper certificate of title under federal law, even if the owner previously held only an electronic title record.
License Plates
When vehicle ownership changes, Virginia law requires the former owner to immediately surrender license plates and vehicle registration to the DMV. The donor of a vehicle may surrender plates online through the DMV's online plate surrender system, return plates to a customer service center, or mail plates to the DMV using a Vehicle Registration Refund Application (FMS 210). If the donor surrenders plates to a customer service center or by mail and has six months or more remaining on the registration, a partial registration refund may be available. Plate refunds do not apply if plates are surrendered online.
The recipient may transfer existing plates to the gifted vehicle by completing a License Plate Application (VSA 10) at a customer service center. Alternatively, the recipient may apply for new plates when registering the vehicle. If plates are transferred, Virginia imposes a registration transfer fee.
Taxes and Fees
Under Virginia law, a gift of a vehicle to a spouse, son, daughter, or parent is exempt from the state's 4.15% motor vehicle sales and use tax. Gifts to other relatives, such as grandparents, grandchildren, aunts, uncles, or siblings, do not qualify for the sales tax exemption, and the recipient must pay tax based on the vehicle's fair market value or $75, whichever is greater. If the gift qualifies for exemption, the recipient must provide proof of the qualifying relationship and complete a Purchaser's Statement of Tax Exemption (SUT 3).
The recipient is responsible for paying the state title fee of $15, a registration fee that varies depending on the vehicle type (for passenger vehicles 4,000 pounds or less, the fee is $30.75; for vehicles 4,001 to 6,500 pounds, $35.75), and any applicable local registration fees if the vehicle is garaged in a locality participating in the Local Vehicle Registration Program. If plates are transferred rather than newly issued, a $2.00 registration transfer fee applies. Highway Use Fees may also be charged in addition to the registration fee, depending on the vehicle and locality.
Step-By-Step Process To Gift a Car in Virginia
Step 1: Complete the title assignment.
The donor must sign the title in the assignment section exactly as the donor's name appears on the front of the title. In the sale price field, the donor writes "GIFT" or "0" to indicate no payment was exchanged. The recipient's name must be entered consistently and clearly on the title. If the vehicle has co-owners, both must sign unless co-owners are joined by "or" on the title, in which case one co-owner may sign. Under Code 46.2-622, if names are separated only by "or," joint ownership exists, and either owner may transfer the vehicle; if names are separated by "and," both owners must sign the assignment.
Step 2: Record the odometer reading.
The donor must record the current odometer reading on the certificate of title in the assignment section. If the title does not contain an assignment section or if the document is a registration card rather than a certificate of title, the donor completes an Odometer Disclosure Statement (VSA 5) and presents it to the DMV when the recipient applies for a title. If the vehicle qualifies for an odometer exemption—such as vehicles manufactured in or before the 2010 model year transferred more than 10 years after the year of manufacture or vehicles manufactured in 2011 or later transferred more than 20 years after the year of manufacture—no odometer disclosure is required.
Step 3: Determine if the gift qualifies for sales and use tax exemption.
The recipient should determine whether the gift relationship qualifies for exemption under Virginia law. A gift to a spouse, parent, son, or daughter qualifies for exemption. All other transfers, including gifts to grandparents, grandchildren, aunts, uncles, or siblings, are subject to the 4.15% sales and use tax. If exempt, the recipient must prepare a Purchaser's Statement of Tax Exemption (SUT 3) documenting the qualifying relationship.
Step 4: Obtain liability insurance.
Before registering the vehicle, the recipient must obtain liability insurance meeting Virginia's minimum coverage requirements. As of January 1, 2025, minimum coverage is $50,000 for injury or death of one person, $100,000 for injury or death of two or more people, and $25,000 for property damage. The recipient must certify that the vehicle is insured as required when applying for registration or purchasing license plates.
Step 5: Apply for title and registration within 30 days.
The recipient must apply for a new title and register the vehicle within 30 days of acquiring the gift. If the recipient qualifies for and is claiming a sales and use tax exemption, the transfer cannot use the electronic titling program and must be completed by submitting an Application for Certificate of Title and Registration (VSA 17A) along with required documentation in person, by mail, or through a DMV appointment. If no tax exemption is being claimed and all other electronic titling eligibility requirements are met, the transfer may be completed through the electronic titling program. The 30-day deadline applies to ownership transfers, and failure to complete registration within the deadline may result in penalties.
Step 6: Submit required documents to the DMV.
The recipient submits the assigned title, completed VSA 17A form, proof of liability insurance, and any applicable tax exemption or price certification forms to a Virginia DMV customer service center, designates a location for mail submission, or completes the electronic titling process if eligible. If the title is from another state, an Odometer Disclosure Statement (VSA 5) may be required if the out-of-state title lacks an assignment section.
Documents Needed for Gifting a Car in Virginia
The documents required to complete a vehicle gift transfer in Virginia typically include the following:
- The original or current certificate of title, properly completed with the donor's signature in the assignment section, the recipient's name, "GIFT" or "0" in the sale price field, and the current odometer reading (unless exempt)
- A completed Application for Certificate of Title and Registration (VSA 17A) submitted by the recipient, or use of the electronic titling system if eligible, and no tax exemption is being claimed
- An Odometer Disclosure Statement (VSA 5), required only if the title does not contain an assignment section or if odometer disclosure requirements apply
- A Purchaser's Statement of Tax Exemption (SUT 3), if the gift qualifies for sales and use tax exemption
- Proof of liability insurance meeting Virginia's minimum coverage requirements, which must be provided before license plates or registration can be issued
- If applicable, a Vehicle Price Certification (SUT 1) or handwritten bill of sale signed by both the donor and recipient if the vehicle is more than five years old and the sale price is not indicated on the title
For vehicles previously registered in another state or lacking a Virginia certificate of title, the recipient may need to provide the out-of-state title or registration card. If the title is lost or unavailable, the recipient submits an Affidavit in Lieu of Title Certificate (VSA 12) along with supporting ownership documentation.
Applicable Fees and Taxes When Gifting a Car in Virginia
| Fee or Tax | Amount | Purpose |
|---|---|---|
| Title Fee | $15.00 | Required for issuance of a new title certificate |
| Vehicle Registration Fee - Passenger 4,000 lbs or less | $30.75 | Annual registration for vehicles 4,000 pounds or less |
| Vehicle Registration Fee - Passenger 4,001-6,500 lbs | $35.75 | Annual registration for vehicles 4,001 to 6,500 pounds |
| License Plate Transfer Fee | $2.00 | Applied if existing plates are transferred to the gifted vehicle |
| Sales and Use Tax | 4.15% (minimum $75.00) | Applied unless gift qualifies for exemption; exemption available for gifts to spouse, parent, son, or daughter |
| Local Vehicle Registration Fee | Varies by locality | Assessed in counties and cities participating in the Local Vehicle Registration Program |
| Highway Use Fee | Varies | May apply depending on vehicle type and locality |
The recipient is responsible for all fees and taxes at the time of applying for title and registration. If the gift qualifies for a sales tax exemption, the recipient avoids the 4.15% tax but still must pay the title fee, registration fee, and any applicable local or highway use fees. If the recipient is a qualifying disabled veteran of the United States Armed Forces or the Virginia National Guard with a 100% service-connected, permanent, and total disability rating, a sales tax exemption may be available; the recipient should contact the DMV for specific eligibility requirements and documentation.
Contact Information
Virginia Department of Motor Vehicles
2300 West Broad Street, Richmond, VA 23269
Phone: (804) 497-7100
Official Website: Virginia Department of Motor Vehicles
