Gifting a Car in Ohio: Taxes, Fees & Rules (2026)
True gifts with zero payment aren't taxed — any recipient, not just family. Write "GIFT" in the price box and file the gift affidavit (BMV 3724) with the clerk. Any priced sale, family or not, is taxed. The title fee of $18 still applies. Verified against official Ohio 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 Ohio
Even a fully exempt gift pays the standard title transfer fee of $18. The recipient also takes on normal registration costs going forward. Transfer the title within 30 days of the sale; the late fee is $5, collected when the title is issued.
Good to know
- Title fee rose from $15 to $18 on January 1, 2026 (HB 96); counties can add $5, making it $23 in some.
Frequently asked questions
Do you pay taxes on a gifted car in Ohio?
True gifts with zero payment aren't taxed — any recipient, not just family. Write "GIFT" in the price box and file the gift affidavit (BMV 3724) with the clerk. Any priced sale, family or not, is taxed.
Is it better to gift a car or sell it for $1 in Ohio?
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. True gifts with zero payment aren't taxed — any recipient, not just family. Write "GIFT" in the price box and file the gift affidavit (BMV 3724) with the clerk. Any priced sale, family or not, is taxed. Follow the gift procedure, not the $1 shortcut.
What does the title transfer cost on a gifted car in Ohio?
The title fee is $18 — that's due on gifts too, even when the tax is exempt. Transfer the title within 30 days of the sale; the late fee is $5, collected when the title is issued.
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 (bmv.ohio.gov, tax.ohio.gov) — last reviewed 2026-07-17. Estimates are informational only.