Effortless DMV Services

Gifting a car to a family member or friend in New York is an incredibly generous gesture, but if you don't handle the paperwork correctly, the NYS Department of Taxation and Finance might send the recipient a bill for sales tax based on the car’s "Fair Market Value."

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In New York, you don't have to pay sales tax on a gifted vehicle—if you know which forms to sign. Here is exactly how to do it right the first time.

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The "Family Exemption" vs. General Gifting

First, it’s important to know who qualifies for a total tax exemption. Under NY Law, sales tax is not due if you are gifting or selling a vehicle to your:

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- Spouse
- Parent
- Child
- Stepparent / Stepchild

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The "Dollar Sale" Trap: Many people think they should sell the car to a family member for $1 to keep it "legal." Don't do this. If you sell a car for $1 to someone outside that immediate family list, the DMV may still charge sales tax based on the car's book value. If it's a gift, call it a gift.

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The Golden Document: Form DTF-802

This is the most important piece of paper in the process. To avoid tax, both the giver (Donor) and the receiver (Recipient) must complete the DTF-802: Statement of Transaction.

• Section 6 is Key: If you are gifting the car to someone other than a spouse, parent, or child (like a sibling, cousin, or friend), the Donor must sign Section 6 on the second page. This is a sworn statement that the vehicle is a true gift and no money changed hands.
• Section 4: This is where you disclose the relationship between the two parties.

Don’t Forget the Bill of Sale (MV-912)

Even if no money is being exchanged, New York still requires a Bill of Sale. On the official MV-912: Vehicle Bill of Sale, simply write "$0 – GIFT" in the purchase price section. Both parties must sign this. It acts as secondary proof of the transaction to keep the tax office happy.

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The Final Step: Registration (MV-82)

To officially complete the transfer, the recipient must submit the MV-82: Vehicle Registration/Title Application.

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Continuous Insurance is Mandatory

The person receiving the car must have a New York State Insurance ID card in their name before they register the vehicle. The name on the insurance card must match the name on the new registration exactly. You can find full NYS Insurance Requirements here.

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Why the DMV Line Isn't Your Only Option

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Gathering the DTF-802, the MV-912, the MV-82, the signed Title, and proof of insurance is a lot of work. One missing signature in Section 6 of the tax form can result in a rejected application and a wasted afternoon at the DMV.

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At NY Tag & Title, we are experts in family transfers and gifted vehicles.We review your paperwork for accuracy before it's submitted, ensuring you don't pay a penny more in sales tax than you legally owe.

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Ready to get those plates without the headache? CALL NOW and let's get finished!