Gifting a Car in Idaho: Taxes, Fees & Rules (2026)
Gifts with no payment are exempt (Form ST-133GT), and family sales within the second degree — parent, child, grandparent, grandchild, sibling by blood or adoption — are exempt with Form ST-133. The title fee of $14 still applies. Verified against official Idaho sources on 2026-07-17.
Gift vs. selling for $1: don't use the $1 trick
The old advice to "sell it for a dollar" usually backfires. A $1 sale is still a sale — in states that tax the higher of price or book value, that means tax on the full book value; in others it simply voids the gift exemption you were entitled to use. The documented gift route (affidavits, the right box on the title) is what actually produces $0 tax where an exemption exists.
What you'll still pay in Idaho
Even a fully exempt gift pays the standard title transfer fee of $14. The recipient also takes on normal registration costs going forward. Title within 30 days of purchase; the late penalty is $20.
Frequently asked questions
Do you pay taxes on a gifted car in Idaho?
Gifts with no payment are exempt (Form ST-133GT), and family sales within the second degree — parent, child, grandparent, grandchild, sibling by blood or adoption — are exempt with Form ST-133.
Is it better to gift a car or sell it for $1 in Idaho?
Gift it — properly. A $1 "sale" is still a sale in most states and can trigger tax on book value or invite a review, while a documented gift uses the actual exemption. Gifts with no payment are exempt (Form ST-133GT), and family sales within the second degree — parent, child, grandparent, grandchild, sibling by blood or adoption — are exempt with Form ST-133. Follow the gift procedure, not the $1 shortcut.
What does the title transfer cost on a gifted car in Idaho?
The title fee is $14 — that's due on gifts too, even when the tax is exempt. Title within 30 days of purchase; the late penalty is $20.
Does the IRS tax a gifted car?
Almost never for normal vehicles — car values fall under the IRS annual gift-tax exclusion for most givers, so no federal gift tax or return is required. The state-level rules above are what actually matter.
Verified against official sources (itd.idaho.gov, tax.idaho.gov) — last reviewed 2026-07-17. Estimates are informational only.