Gifted cars are exempt from state taxes in Tennessee as long as you submit an Affidavit of Non-Dealer Transfers of Motor Vehicles with your $14 title transfer.
, you’ll need to complete a $14 title transfer at your local Tennessee Vehicle Services Division (TVS) and submit an Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats to receive exemption from the
It’s best to involve your recipient in the car-buying and financing process if you plan on buying a new car as a gift in Tennessee.
You can gift a used car once it’s been released of any liens by heading to the TVS office with your recipient and completing a Tennessee vehicle title transfer.
Your gift recipient may also be responsible for a $29 flicense plate fee and purchasing
). However, you’ll need to pay a federal gift tax with the IRS if you’re gifting a brand new vehicle with a market value of $17,000 or more.
Once you’ve discussed those fees with your recipient, you should also make sure they’re aware of the long-term expenses related to car ownership such as
isn’t legally required in Tennessee, but it’s a good idea to have one on file in case there are any legal or financial disputes over the gifted vehicle.
What to do: Make sure your bill of sale contains the following important information:
Description of the gifted car
The Vehicle Identification Number (VIN)
A statement of sale with the purchase price of the car lifted as $0
Your gift recipient will need to purchase Tennessee auto insurance to legally own and drive their new car. At a minimum, they’ll need the following amounts of
The transfer of tile legally grants ownership to the recipient of your vehicle.
What to do: Both you and the gift recipient should head to your local TVS office to fill out the Tennessee vehicle title application forms and sign the certificate of title. You’ll need to pay a $14 transfer fee and $29 license plate fee.
Bring the following required documents to complete the title transfer process:
Once the car title transfer is done, you have legally completed the transfer of ownership from the previous owner to the gift recipient—your gift giving is complete!