Gift transfer — Maryland

Create Maryland Boat bill of sale for gift transfer Online

Complete your Maryland boat bill of sale for a gift transfer transaction. Enter buyer and seller details, vehicle information, and generate a signed PDF in minutes.

MarylandBoatGift transfer

BillOfSaleNow Legal Team

Reviewed against state DMV requirementsLast reviewed: March 20266 min readEditorial policy

What to know about gift transfer sales in Maryland

If the vehicle's fair market value exceeds the annual gift tax exclusion ($18,000 for 2024 per IRS), the donor must file IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return). The lifetime exemption ($13.61 million in 2024) typically means no tax is owed, but the form is still required. Some states require the word "gift" on the title or a separate gift affidavit to waive use tax.

What to include in your bill of sale

Full legal names and addresses for both buyer and seller.
Boat make, model, year, VIN, and current mileage.
Agreed sale price, payment method, and transaction date.
Any gift transfer-specific disclosures required in Maryland.

Seller guidance

Buyer guidance

You will likely owe use tax on the fair market value of the vehicle at registration unless your state exempts immediate family gifts. California, for example, exempts transfers between parents, children, spouses, and domestic partners. Check your state DMV for exemption eligibility.

Maryland-Specific Note

Maryland charges a 6% excise tax on vehicle transfers but exempts immediate family transfers. Qualifying family members include spouse, parent, child, sibling, grandparent, grandchild, and in-laws. Complete the MVA's "Certification of Exemption" (Form FT8) and submit with the title at an MVA branch.

Legal considerations

Maryland Legal Requirements

Under federal law, gifts of vehicles exceeding $18,000 in fair market value (2024 annual exclusion) require the donor to file IRS Form 709, though the $13.61 million lifetime exemption means actual gift tax is rarely owed. Most states do not impose a separate state gift tax, but many require a gift affidavit or notation on the title to waive sales or use tax. Check your state DMV for the specific form and eligible family relationships that qualify for the tax exemption.

Source: IRC § 2503(b); IRS Form 709

Maryland Boat transfer fees and requirements

In Maryland, the title transfer fee is $100 and registration costs $135 - $187 for 2-year registration. Boat sales are subject to 6% excise tax on the purchase price or fair market value. Notarization is required for boat bill of sale documents in Maryland. Emission testing is required in Maryland — verify the boat passes before completing the sale.

Notarized bill of sale required for title transfer
Safety inspection required before registration
Emissions testing required in certain counties
MVA handles title and registration (not DMV)

Maryland sales tax on boat purchases

Maryland has a 6% state sales tax rate. Flat 6% excise tax on purchase price or fair market value. Private-party boat sales in Maryland are subject to sales tax. Excise tax applies to all vehicle sales. The title transfer fee is $100.

Boat market data and safety information

The most common boat makes in private-party sales are Bayliner, Sea Ray, Boston Whaler, Tracker, Yamaha. Average private-party boat prices range from $5,000–$75,000. Boats average 1.8 NHTSA recalls per model across categories including Fuel System, Electrical, Steering.

Safety checkpoints for buying a used boat

Before completing a boat bill of sale in Maryland, verify these safety items:

Verify Hull Identification Number (HIN) matches registration documents
Check for delamination, blistering, or water intrusion in fiberglass hulls
Inspect transom for softness or rot — the most expensive structural repair
Test all bilge pumps, navigation lights, and required safety equipment

Boat insurance and depreciation in Maryland

Boat insurance averages $200–$500/year for boats under 26 ft. Agreed-value policies are preferred over actual-cash-value. Boats depreciate 30–40% in the first 5 years. Aluminum fishing boats hold value better than fiberglass sport boats. Peak season for private boat sales is early spring (march–may) ahead of boating season, with an average of 45 days on market.

Boat registration and titling

Boats are classified as "Watercraft (state-registered) or USCG-documented vessel" for registration purposes. Boats are measured by length, not weight, for registration. Trailers have separate weight-based registration. Federal odometer disclosure does not apply to boats.

Maryland requirements for gift transfer boat sales

For boat gift transfer transactions in Maryland, the buyer must pay 6% excise tax on the purchase price or fair market value and a $100 title transfer fee. Notarization is required. Odometer disclosure is required.

Notarized bill of sale required for title transfer
Safety inspection required before registration
Emissions testing required in certain counties
MVA handles title and registration (not DMV)

Safety tips for gift transfer boat transactions

When completing a gift transfer boat sale in Maryland, always verify the vehicle against NHTSA recall databases. The most common boat recall categories are Fuel System, Electrical, Steering. Check recalls at NHTSA.gov/recalls before signing the bill of sale.

Checklist for gift transfer boat sale in Maryland

Establish fair market value (Kelley Blue Book or comparable)
Determine if IRS Form 709 filing is required (value >$18,000 in 2024)
Obtain state-specific gift affidavit or complete the gift section on the title
Confirm state sales/use tax exemption eligibility for family gifts
Notarize the bill of sale or gift affidavit if your state requires it
Complete Form FT8 (Certification of Exemption) for family transfers
Verify the recipient qualifies as immediate family under MD law
Submit at an MVA branch — processing is typically same-day

Need the printable workflow?

Use the main Maryland boat bill of sale flow when you are ready to generate the completed document.

Open Maryland Boat bill of sale

The Private Vehicle Sale Market

17.5M private sales/yr

About 17.5 million private-party vehicle transactions happen in the U.S. each year — roughly 47% of the used market.

Source: Cox Automotive 2024

Frequently asked questions

When should I use the gift transfer page?

Use this page when your boat sale in Maryland fits a gift transfer scenario. It walks you through the specific disclosures and details that apply to this type of transaction.

Why does the gift transfer scenario have its own page?

Different sale scenarios — such as private party, dealer, or gifted transfers — have different documentation requirements. This page focuses on what buyers and sellers need for a gift transfer transaction specifically.

What should be included in this bill of sale?

Include the buyer and seller details, vehicle identifiers, sale price, date, signatures, and any notes specific to the gift transfer transaction.

What are the Maryland fees for a gift transfer boat transfer?

Maryland charges a $100 title transfer fee. Registration costs $135 - $187 for 2-year registration. Sales tax: 6% excise tax on the purchase price or fair market value. Notarization is required.

What boat makes are most commonly sold in Maryland?

The most popular boat makes in private-party sales are Bayliner, Sea Ray, Boston Whaler, Tracker, Yamaha. Average private-party prices range from $5,000–$75,000.

Do I pay sales tax on a gift transfer boat sale in Maryland?

Maryland has a 6% state sales tax rate. Excise tax applies to all vehicle sales

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