Gifting a Car in Kansas: Taxes, Fees & Rules (2026)
Exempt only between lineal family — parents, children, grandparents, grandchildren and their spouses, including step and adopted (Form TR-215). Siblings, aunts, uncles, and cousins are NOT exempt. Gifts: mark "gift" on the title. The title fee of $10 still applies. Verified against official Kansas 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 Kansas
Even a fully exempt gift pays the standard title transfer fee of $10. The recipient also takes on normal registration costs going forward. 60 days from the title assignment to register and title; penalties start on day 61.
Frequently asked questions
Do you pay taxes on a gifted car in Kansas?
Exempt only between lineal family — parents, children, grandparents, grandchildren and their spouses, including step and adopted (Form TR-215). Siblings, aunts, uncles, and cousins are NOT exempt. Gifts: mark "gift" on the title.
Is it better to gift a car or sell it for $1 in Kansas?
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. Exempt only between lineal family — parents, children, grandparents, grandchildren and their spouses, including step and adopted (Form TR-215). Siblings, aunts, uncles, and cousins are NOT exempt. Gifts: mark "gift" on the title. Follow the gift procedure, not the $1 shortcut.
What does the title transfer cost on a gifted car in Kansas?
The title fee is $10 — that's due on gifts too, even when the tax is exempt. 60 days from the title assignment to register and title; penalties start on day 61.
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 (ksrevenue.gov, ksrevenue.gov) — last reviewed 2026-07-17. Estimates are informational only.