Gifting a Car in Louisiana: Taxes, Fees & Rules (2026)
A notarized Act of Donation of a Movable transfers the vehicle tax-free to anyone — as long as nothing is paid and no loan is assumed. Family sales for money are fully taxable. The title fee of $76.5 still applies. Verified against official Louisiana 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 Louisiana
Even a fully exempt gift pays the standard title transfer fee of $76.5. The recipient also takes on normal registration costs going forward. Tax is payable by the 40th day after an in-state sale. Late: 5% of the tax per 30 days, capped at 25%, plus interest.
Good to know
- Title fee is $68.50 plus an $8 handling fee. The 5% state rate is scheduled to drop to 4.75% in 2030.
Frequently asked questions
Do you pay taxes on a gifted car in Louisiana?
A notarized Act of Donation of a Movable transfers the vehicle tax-free to anyone — as long as nothing is paid and no loan is assumed. Family sales for money are fully taxable.
Is it better to gift a car or sell it for $1 in Louisiana?
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. A notarized Act of Donation of a Movable transfers the vehicle tax-free to anyone — as long as nothing is paid and no loan is assumed. Family sales for money are fully taxable. Follow the gift procedure, not the $1 shortcut.
What does the title transfer cost on a gifted car in Louisiana?
The title fee is $76.5 — that's due on gifts too, even when the tax is exempt. Tax is payable by the 40th day after an in-state sale. Late: 5% of the tax per 30 days, capped at 25%, plus interest.
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 (expresslane.la.gov) — last reviewed 2026-07-17. Estimates are informational only.