Tax Amount

• A Texas resident who receives a qualified gift of a motor vehicle must pay a $10 tax. The person must pay the tax to the county tax assessor-collector at the time the person titles and registers the motor vehicle. A motor vehicle received outside of Texas from an eligible donor may also qualify as a gift when brought into Texas.
  
  

Eligible Gift Transfers

• A vehicle transfer will qualify as a gift as long as it is received from an eligible source, including the following:
  
  -- spouse;
  
  -- parent or stepparent;
  
  -- father/mother-in-law or son/daughter-in-law;
  
  -- grandparent/grandparent-in-law or grandchild/grandchild-in-law;
  
  -- child or stepchild;
  
  -- sibling/brother-in-law/sister-in-law; or
  
  -- guardian.
  
  All other motor vehicle transfers made without payment of consideration are defined as sales and may be subject to sales tax.
  
  

Title Application

• There are two forms that must be completed by both the donor and the person receiving the vehicle as a gift: the title application and a gift affidavit. Both parties must completed Form 130-U, Application for Texas Certificate of Title. The title application may be obtained at a local county tax office or on the Texas Department of Transportation website. Information needed to complete the form includes the odometer reading, vehicle identification number and the name and address of the donor and recipient.
  
  

Affidavit of Motor Vehicle Gift Transfer

• Both the donor and person receiving the vehicle must complete a required joint notarized affidavit of fact, Form 14-317, Affidavit of Motor Vehicle Gift Transfer, describing the transaction and the relationship between the donor and recipient. Regarding the donor's relationship to the recipient, the Parent/Stepparent check box applies also to Father/Mother-in-Law, Child/Stepchild check box applies also to Son/Daughter-in-Law, Sibling check box applies also to Brother/Sister-in-Law, and the Grandparent check box applies also to Grandparent-in Law.