How to Gift a Car in Maryland
Last verified: October 2026 against Maryland MVA sources
Maryland does not charge the 6.5% excise tax on many gifts between family members, but the exemption is not automatic. The relationship has to qualify, no money can change hands, and you have to document it on the MVA’s gift certification form.
Here is who qualifies and how to transfer the title.
Step by step
- 1
Check that the relationship qualifies
The gift certification (Form VR-103) lists these relationships: spouse; mother or father; stepmother or stepfather; son or daughter, including adopted children and stepchildren; brother or sister, including half-siblings; grandmother, grandfather, or grandchild; and mother-in-law, father-in-law, son-in-law, or daughter-in-law.
An aunt or uncle can also gift a car tax-free to a niece or nephew if the aunt or uncle is at least 65 years old.
- 2
Make sure the car is titled in Maryland
The gift certification can be used only for vehicles titled in Maryland. The title must show no liens, or come with a lien release.
- 3
Sign the title over as a gift
The person giving the car enters the recipient as the buyer, writes “GIFT” where the sale price goes, records the odometer reading, and signs and dates the title.
The giver keeps the license plates and returns them to the MVA. The recipient registers the car with new plates.
- 4
Complete the Gift Certification (Form VR-103)
Both the giver and the recipient complete their sections and certify that no money or other valuable consideration is involved.
If your last names are not the same, include proof of the relationship, such as a birth or marriage certificate. For an aunt or uncle gift where proof is not available, also complete Form VR-299.
- 5
Get a safety inspection if one is required
Transfers between spouses or between a parent and child are generally exempt from inspection. All other transfers require a Maryland safety inspection at a station licensed by the Maryland State Police.
- 6
Insure, title, and register
Get Maryland auto insurance, then title and register the car in the recipient’s name at the MVA. A qualifying gift skips the excise tax, but title and registration fees still apply.
When excise tax is still owed
- The relationship is not on the list (for example, a cousin or a friend).
- Money or anything else of value is exchanged for the car.
- The vehicle is not titled in Maryland.
- The paperwork is incomplete. The MVA says gift exemptions must be documented and are not automatic.
- If a transfer does not qualify, the recipient may need to pay excise tax. Contact the MVA (410-768-7000) to confirm how the vehicle will be valued.
What to bring
- The original Maryland title, signed by the giver, with “GIFT” as the sale price
- Gift Certification (Form VR-103), completed by the giver and the recipient
- Proof of relationship if your last names differ (or Form VR-299 for an aunt or uncle gift)
- Lien release, if a lien was listed on the title
- Maryland Safety Inspection Certificate, unless the transfer is between spouses or a parent and child
- Certificate of Title Application (Form VR-005)
- Valid identification and proof of Maryland auto insurance
- Payment for the title and registration fees