Gifting a Car in Pennsylvania: Taxes, Fees & Rules (2026)
Genuine gifts are tax-exempt regardless of relationship — attach Form MV-13ST (Affidavit of Gift). Don't list a $1 price; that triggers a Revenue review instead. The title fee of $72 still applies. Verified against official Pennsylvania 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 Pennsylvania
Even a fully exempt gift pays the standard title transfer fee of $72. The recipient also takes on normal registration costs going forward. Apply for title within 20 days of the sale (75 Pa.C.S. §1103.1). No statutory late fee for private buyers.
Good to know
- Lien recording adds $36.
Frequently asked questions
Do you pay taxes on a gifted car in Pennsylvania?
Genuine gifts are tax-exempt regardless of relationship — attach Form MV-13ST (Affidavit of Gift). Don't list a $1 price; that triggers a Revenue review instead.
Is it better to gift a car or sell it for $1 in Pennsylvania?
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. Genuine gifts are tax-exempt regardless of relationship — attach Form MV-13ST (Affidavit of Gift). Don't list a $1 price; that triggers a Revenue review instead. Follow the gift procedure, not the $1 shortcut.
What does the title transfer cost on a gifted car in Pennsylvania?
The title fee is $72 — that's due on gifts too, even when the tax is exempt. Apply for title within 20 days of the sale (75 Pa.C.S. §1103.1). No statutory late fee for private buyers.
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 (pa.gov) — last reviewed 2026-07-17. Estimates are informational only.