Gifting a Car in Mississippi: Taxes, Fees & Rules (2026)
Exempt between spouse, parent/child, grandparent/grandchild, and siblings with an Affidavit of Relationship, plus transfers by will or trust. The title fee of $9 still applies. Verified against official Mississippi 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 Mississippi
Even a fully exempt gift pays the standard title transfer fee of $9. The recipient also takes on normal registration costs going forward. Title and tag within 7 working days of the sale. Late tag penalty: 5% of the privilege tax per month, up to 25%.
Frequently asked questions
Do you pay taxes on a gifted car in Mississippi?
Exempt between spouse, parent/child, grandparent/grandchild, and siblings with an Affidavit of Relationship, plus transfers by will or trust.
Is it better to gift a car or sell it for $1 in Mississippi?
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 between spouse, parent/child, grandparent/grandchild, and siblings with an Affidavit of Relationship, plus transfers by will or trust. Follow the gift procedure, not the $1 shortcut.
What does the title transfer cost on a gifted car in Mississippi?
The title fee is $9 — that's due on gifts too, even when the tax is exempt. Title and tag within 7 working days of the sale. Late tag penalty: 5% of the privilege tax per month, up to 25%.
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 (dor.ms.gov, codes.findlaw.com) — last reviewed 2026-07-17. Estimates are informational only.