How to Gift a Car in Vermont in 2026

A motor vehicle gift in Vermont transfers ownership from a donor to a recipient without monetary consideration. The donor must assign the existing certificate of title to the recipient, who then applies for a new title and registration through the Vermont Department of Motor Vehicles (DMV).

How Does Gifting a Car in Vermont Work?

In Vermont, gifting a motor vehicle follows the same title and registration procedures as any ownership transfer. The process begins when the donor signs the assignment of ownership on the back of the existing certificate of title. The recipient must then submit a completed Registration/Tax/Title Application (Form VD-119), the properly assigned title, and supporting documentation to the DMV.

The recipient may submit documents by mail to the DMV's Montpelier office, schedule an appointment at a DMV office location, or use myDMV online services where available. All fees and applicable taxes are due at the time of registration or title application.

If the vehicle lacks an original title or the title is held by a lienholder, the donor may provide the original or a certified copy of the last registration certificate. A properly completed Bill of Sale & Odometer Disclosure Statement (Form VT-005) should accompany the transfer documents to establish the nature of the transaction and document the current odometer reading.

Vermont Car Gifting Rules You Should Know

Title Status

Under 23 V.S.A. § 2012, certain vehicles are exempt from title requirements. Vehicles that do not require a title include those owned by the United States; vehicles owned by manufacturers or dealers for sale or testing; motorcycles with less than 300 cubic centimeters of engine displacement or powered by electricity with less than 20 kilowatts of power; trailers with an unladened weight of 1,500 pounds or less; motor-driven cycles; and vehicles more than 15 years old that have been registered in Vermont and have not had a change in ownership since January 1, 2024.

When a vehicle is subject to title requirements, 23 V.S.A. § 2011 et seq. establishes that a certificate of title is evidence of ownership. The new owner's name must be entered on the title application exactly as shown on government-issued identification. The DMV will not process a title application if the names on the identification do not match the names on the title or if the signatures do not match.

For vehicles previously registered in Vermont, the donor must provide a properly assigned title. Proper assignment requires all owners listed on the title to sign in the assignment of ownership section on the back of the title, with the new owner's name entered on the transferred-to line. Any liens listed on the title must be released.

License Plates

When ownership of a vehicle changes, registration plates remain with the owner and may be transferred to another vehicle owned by that person or surrendered to the DMV. Vermont does not require the surrender of plates from the gifted vehicle. If the recipient intends to transfer plates from another vehicle to the gifted vehicle, the transfer process requires submitting both the plate and vehicle information to the DMV. Replacement plates, if needed, are available through the DMV for a fee.

Taxes and Fees

A motor vehicle transfer may qualify as a tax-exempt gift under 32 V.S.A. § 8911(8) if the vehicle is transferred to a spouse, parent, child, sibling, grandparent, grandchild, or a trust established for the benefit of any such persons, provided the vehicle has been registered or titled in Vermont in the name of the original donor. Transfers following the donor's death also qualify for the exemption if they meet the statutory relationship requirements.

If the transfer qualifies for the gift exemption, the recipient must submit the Certification of Tax Exemption (Form VT-014) along with the title application and supporting documentation. A transfer that involves any payment, trade-in credit, or a lienholder on the title will disqualify the gift exemption claim. If a gift exemption is claimed but the vehicle subsequently has a lien placed on it, the exemption will be denied.

If the transfer does not qualify for the gift exemption, a 6% purchase and use tax is applied based on the J.D. Power, clean trade-in value of the vehicle or the purchase price, whichever is greater. The applicable rate and calculation method are established under 32 V.S.A. § 8903.

Step-By-Step Process To Gift a Car in Vermont

Step 1: Verify Title Status and Obtain Proper Assignment.

Confirm whether the vehicle is subject to Vermont title requirements. If a title is required and exists in Vermont under the donor's name, request that the donor sign the assignment of ownership section on the back of the title. If the donor is deceased, obtain a certified copy of the death certificate and ensure that the estate's Administrator or Executor is prepared to sign the application with court documentation.

Step 2: Gather Required Documentation.

Collect the original or certified copy of the properly assigned title, the Bill of Sale & Odometer Disclosure Statement (Form VT-005) completed and signed by both the donor and recipient, the recipient's government-issued identification, and the Certification of Tax Exemption (Form VT-014) if the transfer qualifies for the gift exemption.

If the odometer disclosure statement is required (for vehicles model year 2011 or newer), ensure it is completed on the bill of sale form with the current mileage stated and signed by both parties.

Step 3: Complete the Registration/Tax/Title Application.

Complete the Registration/Tax/Title Application (Form VD-119) with all required information. The Application Instructions (Form VD-119i) provide detailed guidance on how to complete each section. All owners listed on the title must be listed on the application.

Step 4: Submit Documentation to the DMV.

Submit all completed forms, the original or certified title with proper assignment, supporting documentation, and applicable fees to the Vermont DMV. Documents may be mailed to the Montpelier office, submitted in person at any DMV office location, or processed through myDMV online services where available. All taxes and fees are due at the time of submission.

Step 5: Obtain Inspection Within 15 Days of Registration.

Once the registration is processed, the vehicle must be inspected and display a valid Vermont inspection sticker within 15 days of registration. An inspection station requires proof of insurance before the vehicle can be inspected. Vehicles driven within the 15-day window without a valid inspection sticker must still meet Vermont safety inspection standards.

Step 6: Register the Vehicle.

Once all documentation is processed and fees are paid, the recipient receives a new registration certificate and license plates. The recipient should display the registration documentation and ensure the vehicle displays a valid Vermont inspection sticker before operating it on public roads.

Documents Needed for Gifting a Car in Vermont

The following documents are typically required when gifting a motor vehicle in Vermont:

• The current certificate of title properly assigned by all owners listed on the title, or if the title is unavailable, the original or certified copy of the last registration certificate in the donor's name
• Bill of Sale & Odometer Disclosure Statement (Form VT-005), completed and signed by both the donor and recipient
• Registration/Tax/Title Application (Form VD-119), completed and signed by the recipient (or the Administrator/Executor if the donor is deceased)
• Government-issued identification for the recipient to verify name matching
• Certification of Tax Exemption (Form VT-014) if the recipient qualifies for the gift exemption under 32 V.S.A. § 8911(8)
• A certified copy of the death certificate if the donor is deceased, along with court documentation showing that the person signing is the Administrator or Executor
• A copy of a court document identifying the parties and final decree date if the transfer results from a divorce, with proof that the donor owned the vehicle on the date of the final decree
• Copies of trust documents if the transfer is to a trust established for the benefit of eligible family members
• Proof of liability insurance if the recipient will register the vehicle for road use

If the vehicle was previously titled in another state, the donor must provide the original out-of-state title in the donor's name. If the vehicle was not titleable in the previous jurisdiction but was registered, provide the original or certified copy of that registration certificate in the donor's name.

Applicable Fees and Taxes When Gifting a Car in Vermont

Vermont assesses specific fees and taxes at the time of title application and vehicle registration. The following table outlines the primary fees associated with gifting and registering a motor vehicle in Vermont:

Additional registration fees apply based on vehicle type, fuel type, and registration period. Vermont registration fees vary for motorcycles, trucks, trailers, antique vehicles, and other classifications. A Clean Air Fund Fee of $2.00 and an EV Infrastructure Fee are included in applicable registration fees where relevant.

For a gift transfer that qualifies for exemption under 32 V.S.A. § 8911(8), no purchase and use tax is due. If the transfer does not qualify for the gift exemption or involves any consideration, a 6% purchase and use tax is assessed based on the J.D. Power, clean trade-in value of the vehicle or the stated purchase price, whichever is greater. The recipient may submit a Vermont Dealer Appraisal form if the vehicle's value is believed to be less than the J.D. Power value.

A refund request for purchase and use tax paid at the time of registration may be made within one year if proof of eligibility for the gift tax exemption is obtained after the fact.

Contact Information

Vermont Department of Motor Vehicles
120 State Street, Montpelier, VT 05603-0001
Phone: (802) 828-2000
Official Website: Vermont Department of Motor Vehicles