How to Gift a Car in Virginia
Last verified: October 2026 against Virginia DMV sources
Virginia exempts a gift from its 4.15% Sales and Use Tax only for a few close relationships. Everyone else pays tax based on the car’s value, even when no money changes hands.
Here is who qualifies and how to transfer the title.
Step by step
- 1
Check that the relationship qualifies
The exemption covers a gift to a spouse, or to a son, daughter, or parent of the owner. For this exemption, “child” and “parent” include only biological and adopted relationships.
Stepchildren, stepparents, brothers and sisters, grandparents, and friends do not qualify.
- 2
Sign the title over as a gift
The giver completes Section A of the title with the recipient’s name and address, the odometer reading, and the date, and writes “gift” where the sale price goes. All owners listed on the title must sign.
- 3
Complete the Purchaser’s Statement of Tax Exemption (Form SUT 3)
The form certifies that the car was received as a gift and states the recipient’s relationship to the giver.
Except for a gift to a spouse, the exemption does not cover any loan or other obligation the recipient takes over.
- 4
Keep or replace the plates
The giver removes the license plates. The recipient buys new plates or transfers plates from another of their vehicles.
- 5
Insure, title, and register within 30 days
Get liability insurance, then title and register the car with the DMV within 30 days. The $15 title fee and the registration fee still apply. The car must display a valid safety inspection sticker to be driven.
When a gift is still taxed
- The recipient is not a spouse or a biological or adopted child or parent (for example, a stepchild, sibling, grandchild, or friend).
- Without a sale price, the tax is based on the NADA trade-in value, or the $75 minimum, whichever is greater.
- The recipient takes over a loan on the car, unless the gift is to a spouse.
What to bring
- The Virginia title, signed by the giver, with “gift” as the sale price
- Purchaser’s Statement of Tax Exemption (Form SUT 3), for a spouse, child, or parent
- Proof of liability insurance
- Emissions inspection, if the car is kept in a Northern Virginia emissions locality
- Payment for the title and registration fees (and the sales and use tax if the gift does not qualify)