Gifting a Car in New Jersey: Taxes, Fees & Rules (2026)
Only true gifts are exempt — write "GIFT" on the title's price line. There is NO family-sale exemption: even $1 changing hands between relatives makes it fully taxable. The title fee of $60 still applies. Verified against official New Jersey 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 New Jersey
Even a fully exempt gift pays the standard title transfer fee of $60. The recipient also takes on normal registration costs going forward. Transfer the title within 10 working days of the sale or pay a $25 penalty.
Good to know
- $60 standard title, $85 with a lien. Registration can transfer to immediate family for $4.50.
Frequently asked questions
Do you pay taxes on a gifted car in New Jersey?
Only true gifts are exempt — write "GIFT" on the title's price line. There is NO family-sale exemption: even $1 changing hands between relatives makes it fully taxable.
Is it better to gift a car or sell it for $1 in New Jersey?
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. Only true gifts are exempt — write "GIFT" on the title's price line. There is NO family-sale exemption: even $1 changing hands between relatives makes it fully taxable. Follow the gift procedure, not the $1 shortcut.
What does the title transfer cost on a gifted car in New Jersey?
The title fee is $60 — that's due on gifts too, even when the tax is exempt. Transfer the title within 10 working days of the sale or pay a $25 penalty.
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 (nj.gov, nj.gov) — last reviewed 2026-07-17. Estimates are informational only.