Gifting a Car in Maryland: Taxes, Fees & Rules (2026)
Excise-exempt with Form VR-103 between spouse, parent/child, sibling, grandparent/grandchild (plus a niece/nephew of a transferor 65+). In-laws, cousins, and partners are NOT exempt. The $200 title fee is still due. The title fee of $200 still applies. Verified against official Maryland 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 Maryland
Even a fully exempt gift pays the standard title transfer fee of $200. The recipient also takes on normal registration costs going forward. Dealers must submit within 30 days; private buyers must title before registering or driving. New residents have 60 days to keep their out-of-state tax credit.
Good to know
- The title fee doubled to $200 in July 2025 (HB 352).
Frequently asked questions
Do you pay taxes on a gifted car in Maryland?
Excise-exempt with Form VR-103 between spouse, parent/child, sibling, grandparent/grandchild (plus a niece/nephew of a transferor 65+). In-laws, cousins, and partners are NOT exempt. The $200 title fee is still due.
Is it better to gift a car or sell it for $1 in Maryland?
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. Excise-exempt with Form VR-103 between spouse, parent/child, sibling, grandparent/grandchild (plus a niece/nephew of a transferor 65+). In-laws, cousins, and partners are NOT exempt. The $200 title fee is still due. Follow the gift procedure, not the $1 shortcut.
What does the title transfer cost on a gifted car in Maryland?
The title fee is $200 — that's due on gifts too, even when the tax is exempt. Dealers must submit within 30 days; private buyers must title before registering or driving. New residents have 60 days to keep their out-of-state tax credit.
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 (mva.maryland.gov, mva.maryland.gov) — last reviewed 2026-07-17. Estimates are informational only.