How to Gift A Vehicle In Washington State: Step-by-Step Guide

Quick answer

• Understand that gifting a vehicle in Washington typically involves a “gift affidavit” to waive sales tax.
• You’ll need a signed-over title and a bill of sale (even for a gift) to document the transfer.
• The recipient must register the vehicle and pay applicable fees, but usually not retail sales tax.
• Ensure all paperwork is completed accurately to avoid delays with the Washington State Department of Licensing (DOL).
• The vehicle must be for personal use; commercial transfers have different rules.
• Confirm the vehicle’s VIN and your identities match the documentation perfectly.

Who this is for

• Washington residents looking to transfer ownership of a vehicle to a family member or friend without a sale.
• Individuals who have received a vehicle as a gift and need to complete the registration process.
• Anyone navigating the Washington State Department of Licensing (DOL) requirements for vehicle gifting.

What to check first (before you act)

Goal and timeline

What is your primary goal in gifting this vehicle? Is it to help a family member, clear out a garage, or something else? Having a clear objective helps ensure you follow the correct procedures. Your timeline is also important; some DOL processes can take time, so plan accordingly.

Current cash flow

While gifting a vehicle typically avoids the retail sales tax, there are still fees associated with titling and registration. The recipient should have funds available for these costs, which can vary based on the vehicle type and its age.

Emergency fund or safety buffer

For the recipient, having a small buffer for unexpected immediate maintenance or registration issues is wise. While the vehicle is a gift, ensuring it’s roadworthy and legally compliant upon transfer is crucial.

Debt and interest rates

If the vehicle has a loan attached, it must be paid off and the lien released before you can legally gift the title. The recipient should not assume any existing debt on the vehicle unless explicitly agreed upon and handled through proper legal channels.

Credit impact

Gifting a vehicle generally has no direct impact on the credit of either party, assuming any outstanding loans are handled correctly. The transfer itself is not a credit-generating event.

Gifting a Vehicle in Washington State: Step-by-Step

Step 1: Confirm Eligibility for Gift Transfer

What to do: Verify that the transfer qualifies as a true gift under Washington State DOL rules. This generally means the vehicle is transferred without any payment or expectation of payment. Transfers between spouses, parents and children, or sometimes siblings, are common examples.
What “good” looks like: You’ve confirmed that the transfer is a genuine gift and not a disguised sale, which would trigger sales tax.
A common mistake and how to avoid it: Assuming any transfer to a family member is automatically tax-exempt. Always check the DOL’s specific guidelines for gift transfers.

Step 2: Gather Necessary Documentation

What to do: Obtain the vehicle’s current Washington State title. You will also need a Washington State Gift Affidavit (Form TD-420-065). A bill of sale is still recommended, even for gifts, to document the transfer details and zero sale price.
What “good” looks like: You have the original title, a completed gift affidavit, and a bill of sale ready.
A common mistake and how to avoid it: Using an outdated or incorrect version of the gift affidavit. Always download the latest form from the Washington DOL website.

Step 3: Complete the Title Transfer Section

What to do: The current owner (the giver) must sign the title over to the recipient in the designated “seller” section. Fill in the recipient’s full legal name and address.
What “good” looks like: All required fields on the title are accurately filled out by the giver, with no errors or cross-outs.
A common mistake and how to avoid it: Making mistakes or crossing things out on the title. This can invalidate the title. If you make an error, you may need to apply for a replacement title.

Step 4: Complete the Washington State Gift Affidavit

What to do: Both the giver and the recipient must complete and sign the Gift Affidavit. This form declares that the vehicle is a true gift and not a sale, thereby waiving the retail sales tax.
What “good” looks like: The affidavit is fully completed, with both parties’ signatures and dates, confirming the gift nature of the transfer.
A common mistake and how to avoid it: Forgetting to sign the affidavit or leaving sections blank. This will likely result in the DOL assessing sales tax.

Step 5: Complete the Bill of Sale

What to do: Fill out a bill of sale documenting the vehicle’s details (Year, Make, Model, VIN), the giver’s name and address, the recipient’s name and address, and the sale price (which should be $0 for a gift). Both parties should sign and date it.
What “good” looks like: A clear record of the vehicle transfer, showing a zero dollar amount for the sale price.
A common mistake and how to avoid it: Omitting the bill of sale entirely. While the gift affidavit waives tax, a bill of sale is still a crucial record of the transaction for the DOL.

Step 6: Record the Vehicle Identification Number (VIN)

What to do: Ensure the VIN on the title, the gift affidavit, the bill of sale, and the vehicle itself all match exactly.
What “good” looks like: A perfect match across all documents and the vehicle.
A common mistake and how to avoid it: Typos in the VIN on any document. This is a common reason for processing delays. Double-check, then triple-check.

Step 7: Submit Documents to the DOL

What to do: The recipient (the new owner) must take all completed documents (signed title, gift affidavit, bill of sale) to a Washington DOL office or an authorized vehicle licensing subagency within 15 days of receiving the vehicle.
What “good” looks like: Timely submission of all correct paperwork to initiate the titling and registration process.
A common mistake and how to avoid it: Missing the 15-day deadline. Late fees can apply, and you could be cited for operating an unregistered vehicle.

Step 8: Pay Applicable Fees

What to do: The recipient will need to pay the required fees for titling, registration, and any other applicable taxes or license fees. These are separate from the retail sales tax waived by the gift affidavit.
What “good” looks like: All required fees are paid, and the recipient receives their new registration and license plates.
A common mistake and how to avoid it: Underestimating the total cost. Research typical registration and title fees for your vehicle type beforehand.

Step 9: Obtain New License Plates and Registration

What to do: Once all paperwork is processed and fees are paid, the recipient will receive new license plates (if necessary) and a registration certificate.
What “good” looks like: The recipient legally owns and can operate the vehicle on Washington roads.
A common mistake and how to avoid it: Driving with expired or incorrect plates. Ensure your new plates and registration are current.

Common Mistakes (and What Happens If You Ignore Them)

Mistake	What it causes	Fix
Not using the official Gift Affidavit	DOL may assess retail sales tax, as the gift status isn’t properly documented.	Obtain and use the correct, current Washington State Gift Affidavit (Form TD-420-065) from the DOL website.
Errors or cross-outs on the title	The title may be invalidated, requiring the original owner to apply for a duplicate title.	Fill out the title carefully. If an error occurs, consult the DOL for the proper procedure to correct it or obtain a replacement.
Missing or incomplete Bill of Sale	May cause processing delays or questions from the DOL regarding the transaction details.	Always include a bill of sale, even for a gift, with a $0 sale price, signed by both parties.
VIN mismatch on documents	Significant delays, potential rejection of the transfer, or requiring additional verification steps.	Double and triple-check the VIN on all documents and the vehicle itself before submitting.
Exceeding the 15-day submission deadline	Late fees may be assessed, and the vehicle may be considered unregistered, leading to potential citations.	Submit all paperwork to the DOL or an authorized subagency within 15 days of receiving the vehicle.
Assuming zero fees beyond sales tax	Unexpected costs for titling, registration, and other administrative fees can arise.	Research estimated DOL fees for your vehicle type and location before the transfer.
Gifting a vehicle with an outstanding lien	The lienholder must be paid off and the lien released before the title can be legally transferred.	Ensure any loans are fully paid off and the lien is officially released by the lender before initiating the gifting process.
Incorrectly identifying the relationship	If the DOL questions the gift status (e.g., suspected sale), sales tax may be applied.	Be prepared to demonstrate the relationship or the gift’s nature if asked by the DOL, especially for non-immediate family transfers.
Not updating insurance	Driving an uninsured vehicle is illegal and can lead to significant financial and legal penalties.	The recipient must obtain their own insurance for the vehicle immediately upon taking ownership.
Failure to register the vehicle promptly	Operating an unregistered vehicle is illegal and can result in fines and other penalties.	Ensure the recipient completes the registration process with the DOL as soon as possible after receiving the vehicle.

Decision Rules

• If the vehicle is being sold for any amount, then do not use the Gift Affidavit, because it is only for true gifts without payment.
• If the vehicle has a loan, then pay off the loan and get a lien release before gifting, because you cannot transfer a title with an active lien.
• If the recipient is not an immediate family member, then be prepared to provide additional documentation to the DOL, because they may question the gift status.
• If you make a mistake on the title, then contact the DOL immediately, because an invalid title can halt the entire transfer process.
• If you receive a vehicle as a gift, then obtain your own insurance policy for it before driving, because the previous owner’s insurance will not cover you.
• If the transfer is between spouses or domestic partners, then it typically qualifies as a gift, but always confirm with DOL guidelines.
• If the vehicle is being gifted to a minor, then the title and registration will likely need to be in the name of a parent or legal guardian, because minors generally cannot hold vehicle titles.
• If you are unsure about any part of the process, then consult the Washington State DOL website or visit a DOL office, because incorrect procedures can lead to delays and extra costs.
• If the gifting is part of a divorce settlement, then consult legal counsel, because these situations often have specific legal requirements beyond a simple gift.
• If the vehicle is being gifted for commercial purposes, then sales tax will likely apply, because gift provisions are typically for personal use.
• If the vehicle has been gifted, then the recipient must still pay registration fees and discover fees, because these are separate from sales tax.
• If the gift is from a business to an individual, then sales tax will likely apply unless specific exemptions exist, so check DOL rules carefully.

FAQ

Do I have to pay sales tax when gifting a car in Washington?

Generally, no. Washington State allows for a “gift” transfer where retail sales tax is waived, provided you use the official Gift Affidavit and meet the DOL’s criteria for a true gift.

What documents do I need to gift a car in Washington?

You will need the vehicle’s current Washington title, a completed Washington State Gift Affidavit, and a bill of sale (even for $0). Both the giver and recipient must sign these documents.

How long does the recipient have to register a gifted vehicle?

The recipient has 15 days from the date of receiving the vehicle to submit all required paperwork and register it with the Washington State Department of Licensing (DOL).

Can I gift a car to anyone, or are there restrictions?

While the primary goal is to avoid sales tax, the DOL may question transfers that don’t appear to be genuine gifts. Transfers to immediate family are common, but it’s always best to check DOL guidelines for specifics.

What if the gifted vehicle has a loan on it?

Any outstanding loan must be paid off, and the lienholder must release their lien before the title can be legally transferred as a gift.

Are there any fees besides sales tax when gifting a car?

Yes, the recipient will still be responsible for paying titling fees, registration fees, and potentially other administrative or discover fees, which vary by vehicle.

What is a Gift Affidavit, and why is it important?

A Gift Affidavit is a legal document where both the giver and receiver declare the vehicle transfer is a true gift without payment. It’s crucial for waiving the retail sales tax.

Can I use an old gift affidavit form?

No, always use the most current version of the Washington State Gift Affidavit (Form TD-420-065) available on the DOL website to ensure it’s accepted.

What this page does NOT cover (and where to go next)

• Specific dollar amounts for registration fees or sales tax rates (check the DOL website or your local licensing office).
• Complex scenarios involving out-of-state transfers or vehicles with salvage titles.
• Legal advice for disputes or complex ownership situations.
• Detailed information on commercial vehicle gifting or fleet transfers.
• Insurance requirements and options for the gifted vehicle.
• Specific details on emissions testing or safety inspections required in Washington State.