How to Gift a Car in Maryland in 2026

In Maryland, gifting a motor vehicle is a transfer of ownership from one individual to another without monetary exchange. The transfer is governed by Maryland's Motor Vehicle Administration (MVA) and must be completed through the standard title and registration process.

How Does Gifting a Car in Maryland Work?

When a motor vehicle is gifted in Maryland, both the donor and the recipient must follow specific procedures to ensure proper title transfer. The donor completes an assignment section on the certificate of title, writing "GIFT" in the sale price field. The recipient then applies for a new title in the recipient's name using the Application for Certificate of Title (VR-005).

After the title transfer is complete, the recipient must register the vehicle with the MVA and obtain liability insurance before the vehicle may be operated on Maryland roads.

Maryland Car Gifting Rules You Should Know

Title Status

All motor vehicles must be titled in Maryland before they can be registered and operated. The certificate of title serves as proof of legal ownership. When receiving a gifted vehicle, the recipient is responsible for obtaining a new title in the recipient's name. The title must match the vehicle's vehicle identification number (VIN) and show no liens, or if liens exist, include a lien release or proof that the lien has been satisfied.

The donor's name on the title must be signed exactly as it appears on the certificate of title. Any discrepancies between the signed name and supporting documentation may delay processing.

License Plates

Before transferring the vehicle, the donor must remove the existing license plates. The donor retains the plates; they are not transferred to the recipient. Plates may be transferred to another vehicle only under limited circumstances defined by Maryland law. In most gift transfers, the recipient must purchase new plates along with the vehicle registration.

If the recipient wishes to transfer plates from a different vehicle they own to the gifted vehicle, a $15 plate transfer fee applies if the new registration fee is the same or lower than the previous vehicle's registration fee. If the new registration fee is higher, the recipient pays $15 plus the difference.

Taxes and Fees

Gift transfers between immediate family members are generally exempt from Maryland's 6.5% excise tax if a gift certification form is submitted and the transfer meets all requirements. For gifts to non-family members, the recipient may be subject to a 6.5% excise tax based on the vehicle's fair market value or the amount shown on a notarized bill of sale. Additional fees apply regardless of tax status.

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

Step 1: Verify title validity and document ownership.

The donor confirms possession of a valid Certificate of Title in the donor's name, with no outstanding liens, or provides documentation proving that any liens have been released. The title must accurately reflect the vehicle information and match the VIN.

Step 2: Determine tax exemption eligibility.

If the recipient is an immediate family member as defined by Maryland law, the donor and recipient may qualify for an excise tax exemption. For gifts to non-family members, the recipient will owe excise tax. The donor and recipient discuss whether a gift certification form will be needed.

Step 3: Complete the title assignment.

The donor completes the assignment section on the reverse of the certificate of title by:

• Entering the recipient's full name as the buyer
• Writing "GIFT" in the sale price field (not leaving it blank)
• Recording the vehicle's current odometer reading
• Signing and dating the title exactly as the name appears on the title face

The donor does not cross out or alter any existing information on the title.

Step 4: Complete odometer disclosure.

The donor completes the Odometer Disclosure Statement (VR-197), certifying the current mileage reading and indicating whether the reading reflects actual mileage or a discrepancy. Both the donor and recipient sign the form.

Step 5: Complete gift certification if required.

If claiming an excise tax exemption, both the donor and recipient complete the Application for Maryland Gift Certification (VR-103) under penalty of perjury, certifying that the transfer is a bona fide gift with no monetary exchange. Both parties sign the form. If the donor and recipient have different last names, proof of relationship is attached to the form.

Step 6: Remove license plates.

The donor removes the license plates from the vehicle before transferring possession. The donor retains the plates for return to the MVA or transfer to another vehicle.

Step 7: Arrange vehicle inspection if required.

If the gift transfer is not between a spouse or between a parent and child, the recipient arranges for a Maryland safety inspection at an authorized inspection station. The recipient obtains the inspection certificate, which must accompany the title application.

Note: Aunt/uncle (65+) to niece/nephew transfers may qualify for an excise tax exemption via Form VR-299, but a safety inspection is still required.

Step 8: Obtain liability insurance.

The recipient secures active liability insurance meeting Maryland minimums ($30,000 per person, $60,000 per accident for bodily injury, $15,000 for property damage) before registering the vehicle.

Step 9: Prepare title application.

The recipient completes the Application for Certificate of Title (VR-005), providing:

• Recipient's full name and address
• Vehicle identification and current odometer reading
• Insurance information
• Desired registration class and plate type

Step 10: Submit application to MVA.

The recipient submits the completed application, the assigned title, the odometer disclosure form, the gift certification form (if applicable), the safety inspection certificate (if required), and proof of insurance to the MVA. A vehicle titling appointment may be required at an MVA location for in-person processing.

Step 11: Pay required fees.

The recipient pays the title fee ($200), the registration fee based on vehicle class, the plate transfer fee (if applicable) ($15), and the $40 EMS surcharge. If a safety inspection was performed, the inspection cost ($30) is also due.

Step 12: Receive new title and registration.

Once processed and approved, the MVA issues a new certificate of title in the recipient's name and a registration certificate authorizing the recipient to operate the vehicle.

Documents Needed for Gifting a Car in Maryland

• Current certificate of title, properly assigned by the donor to the recipient with "GIFT" written in the sale price field
• Application for Certificate of Title (VR-005) completed and signed by the recipient
• Odometer Disclosure Statement (VR-197) completed and signed by both the donor and recipient
• Application for Maryland Gift Certification (VR-103) completed and signed by both parties (if claiming excise tax exemption)
• Proof of relationship if giver and receiver have different last names (birth certificate, marriage certificate, or adoption papers)
• Maryland safety inspection certificate (if the transfer is not between spouse, parent and child, or aunt/uncle 65+ to niece/nephew)
• Proof of liability insurance showing minimum coverage requirements met
• Valid identification (Maryland or out-of-state driver's license or ID card) for the recipient
• Lien release or proof of lien satisfaction from the lienholder (if applicable)

Applicable Fees and Taxes When Gifting a Car in Maryland

Fees are collected during the application to MVA. Excise tax exemption for immediate family gifts requires submission of the Application for Maryland Gift Certification (VR-103) with proof of a qualifying relationship if the surnames differ. Without proper documentation, the recipient is subject to the full 6.5% excise tax based on the vehicle's fair market value as shown in the National Automobile Dealers Association (NADA) Used Car Guide or the amount on the notarized bill of sale.

Contact Information

Maryland Motor Vehicle Administration
6601 Ritchie Highway N.E., Glen Burnie, MD 21062
Phone: (410) 768-7000
Official Website: Motor Vehicle Administration