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Gift transfer — Texas

Texas Car bill of sale for gift transfer

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

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

What to know about gift transfer sales in Texas

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.
  • Car make, model, year, VIN, and current mileage.
  • Agreed sale price, payment method, and transaction date.
  • Any gift transfer-specific disclosures required in Texas.

Seller guidance

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.

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.

Texas-Specific Note

Texas Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) is required to claim the gift exemption. The recipient must be an eligible family member: spouse, parent, stepparent, child, stepchild, sibling, grandparent, grandchild, or legal guardian. A $10 gift tax replaces standard sales tax. Present the affidavit at the county tax office within 30 days.

Legal considerations

Texas Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) is required to claim the gift exemption. The recipient must be an eligible family member: spouse, parent, stepparent, child, stepchild, sibling, grandparent, grandchild, or legal guardian. A $10 gift tax replaces standard sales tax. Present the affidavit at the county tax office within 30 days.

Texas Legal Requirements

Texas has no state gift tax. However, the Texas DMV requires a completed Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) to qualify for the gift tax exemption on vehicle transfers. Eligible recipients are limited to spouses, parents, children, stepchildren, siblings, grandparents, and grandchildren. Transfers to non-eligible recipients are subject to standard motor vehicle sales tax.

Source: TX Tax Code § 152.025; TX DMV Form 14-317

Texas Car transfer fees and requirements

In Texas, the title transfer fee is $33 and registration costs $50.75 per year. Car sales are subject to 6.25% motor vehicle sales tax on purchase price. Texas does not require notarization for private-party car transfers. Emission testing is required in Texas — verify the car passes before completing the sale.

  • Annual safety inspection required; emissions testing in select counties
  • Title transfer within 30 days at county tax office
  • Form 130-U required for title transfer
  • Standard Presumptive Value (SPV) used for tax assessment on private sales

Texas sales tax on car purchases

Texas has a 6.25% state sales tax rate. Flat 6.25% motor vehicle sales tax statewide. Private-party car sales in Texas are subject to sales tax. Tax based on Standard Presumptive Value (SPV) or purchase price, whichever is higher. The title transfer fee is $33.

Car market data and safety information

The most common car makes in private-party sales are Toyota, Honda, Ford, Chevrolet, Nissan. Average private-party car prices range from $5,000–$25,000. The average NCAP safety rating for recent car models is 4.2 out of 5 stars. Cars average 3.1 NHTSA recalls per model across categories including Airbags (Takata), Power Train, Fuel System.

Safety checkpoints for buying a used car

Before completing a car bill of sale in Texas, verify these safety items:

  • Verify airbag recall status (Takata recall affected 67M+ vehicles)
  • Check tire age — tires over 6 years old degrade regardless of tread depth
  • Confirm brake pad thickness and rotor condition
  • Test all seatbelts for proper retraction and latching

Car insurance and depreciation in Texas

Liability insurance required in 49 states (New Hampshire is the exception). Average annual premium: $1,600–$2,200. Cars lose approximately 20% of value in the first year and 60% over five years. Japanese brands retain value best. Peak season for private car sales is spring (march–may) when tax refunds boost demand, with an average of 21 days on market.

Car registration and titling

Cars are classified as "Passenger vehicle" for registration purposes. Standard passenger cars weigh 2,500–4,500 lbs; no special weight-class registration required. Federal odometer disclosure is required for cars under 20 years old.

Texas requirements for gift transfer car sales

For car gift transfer transactions in Texas, the buyer must pay 6.25% motor vehicle sales tax on purchase price and a $33 title transfer fee. Notarization is not required. Odometer disclosure is required.

  • Annual safety inspection required; emissions testing in select counties
  • Title transfer within 30 days at county tax office
  • Form 130-U required for title transfer
  • Standard Presumptive Value (SPV) used for tax assessment on private sales

Safety tips for gift transfer car transactions

When completing a gift transfer car sale in Texas, always verify the vehicle against NHTSA recall databases. The most common car recall categories are Airbags (Takata), Power Train, Fuel System. Check recalls at NHTSA.gov/recalls before signing the bill of sale.

Checklist for gift transfer car sale in Texas

  1. Establish fair market value (Kelley Blue Book or comparable)
  2. Determine if IRS Form 709 filing is required (value >$18,000 in 2024)
  3. Obtain state-specific gift affidavit or complete the gift section on the title
  4. Confirm state sales/use tax exemption eligibility for family gifts
  5. Notarize the bill of sale or gift affidavit if your state requires it
  6. Complete Form 14-317 (Affidavit of Motor Vehicle Gift Transfer)
  7. Pay the $10 gift tax at the county tax assessor-collector office
  8. Transfer title within 30 days at the county tax office

Need the printable workflow?

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

Open Texas Car 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 car sale in Texas 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 Texas fees for a gift transfer car transfer?

Texas charges a $33 title transfer fee. Registration costs $50.75 per year. Sales tax: 6.25% motor vehicle sales tax on purchase price. Notarization is not required for most transfers.

What car makes are most commonly sold in Texas?

The most popular car makes in private-party sales are Toyota, Honda, Ford, Chevrolet, Nissan. Average private-party prices range from $5,000–$25,000.

Do I pay sales tax on a gift transfer car sale in Texas?

Texas has a 6.25% state sales tax rate. Tax based on Standard Presumptive Value (SPV) or purchase price, whichever is higher

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