How To Transfer a Car Title to a Family Member in Vermont in 2026

Title transfers between family members in Vermont are handled by the Vermont Department of Motor Vehicles (DMV). For DMV purposes, the transaction is processed through the same title-and-registration system used for other private transfers, with tax treatment varying based on the facts of the transfer. A family transfer may be reported as a gift if it meets Vermont’s exemption standards or as a sale if consideration is paid.

Vermont’s transfer rules also affect the registration status at the time of a change in ownership. Under 23 V.S.A. § 321, the prior registration expires upon transfer, and the former registrant must remove the plates from the vehicle immediately.

What Does Transferring a Car Title to a Family Member in Vermont Mean?

Transferring a car title to a family member in Vermont means changing the legal owner of record through the state’s official ownership process. For Vermont-titled vehicles, the certificate of title is the state ownership document. The current titled owner remains the owner of record until the title is properly assigned and the DMV issues a replacement record in the new owner’s name.

Vermont uses a title-and-registration application for most ownership changes. One important state-specific rule applies to older vehicles: if a vehicle is model year 2009 or older and already has a Vermont registration in the owner’s name, Vermont does not require a title, and the Vermont registration certificate serves as the ownership document. In that situation, the ownership record still only changes after the DMV processes the transfer paperwork.

Eligible Family Members for Title Transfers in Vermont

Vermont has special tax treatment for certain family transfers, but the exemption applies only to qualifying gifts or inheritances. The statutory exemption in 32 V.S.A. § 8911-,%C2%A7%208911.%20Exceptions,-The%20tax%20imposed) applies to transfers to a spouse, mother, father, child, sibling, grandparent, or grandchild of the donor, including certain trust transfers and certain post-death transfers, if the vehicle was registered or titled in Vermont in the original donor’s name.

DMV’s gift guidance also recognizes a broader list of common family relationships for exemption review, including daughter-in-law, son-in-law, father-in-law, mother-in-law, stepsibling, stepdaughter, stepson, stepfather, stepmother, and ex-spouse, along with trusts established for eligible family members under the DMV gift instructions. If the transfer does not qualify for the exemption, a private-party family sale is taxed under Vermont’s motor vehicle purchase and use tax rules, generally at 6% of the purchase price or clean trade-in value, whichever is greater.

How To Transfer a Car Title as a Gift to a Family Member in Vermont

Step 1 — Confirm That the Transfer Qualifies for Vermont’s Gift Exemption The transaction must be a true gift. The DMV states that a transfer involving any payment does not qualify. The DMV also states that a gift-exemption claim is denied if the application lists a lienholder, so lien status should be resolved before submission.

Step 2 — Gather the Current Ownership Document If the vehicle has a Vermont or out-of-state title, the donor should provide the original title. If the prior jurisdiction did not title the vehicle, DMV requires the original registration certificate or a certified copy in the donor’s name. For a 2009-or-older Vermont vehicle already registered in the donor’s name, the Vermont registration certificate may serve as the ownership document.

Step 3 — Assign Ownership Correctly All owners listed on the title must sign the assignment section, and the recipient’s name must be entered as the transferee. DMV requires all liens shown on the title to be released before the transfer is processed.

Step 4 — Complete the Mileage Record if Required Vermont requires an odometer disclosure for model year 2011 or newer vehicles. The state’s Bill of Sale and Odometer Disclosure Statement (VT-005) may be used for that purpose. For a pure gift, a separate bill of sale is not the core ownership document, but the VT-005 is still useful when mileage disclosure is required.

Step 5 — Prepare the Title and Tax Forms The recipient should complete the Registration, Tax, and Title Application (VD-119) and the Certification of Tax Exemption (VT-014) to claim the family gift exemption.

Step 6 — Remove the Donor’s Plates and Address Plate Transfer Rules Under Vermont law, the transferor must remove the registration plates immediately after the change of ownership. If the former registrant intends to move those plates to another vehicle owned by that same person, the transfer application must be made within 24 hours; otherwise, the plates must be returned to the Commissioner within five days under 23 V.S.A. § 321.

Step 7 — Submit the Application Packet Promptly The recipient files the assigned ownership document, the completed application, the exemption form, and any special supporting records required for the transaction. Because the prior registration expires upon a change of ownership, the new owner should not rely on the former owner’s registration after the transfer.

How To Transfer a Car Title as a Sale to a Family Member in Vermont

Step 1 — Review the Title and Clear Any Lien A family sale is processed as a standard private transfer. The seller should confirm that the title is available for assignment and that any lien releases needed for the transfer are in hand before the application is filed.

Step 2 — Assign the Ownership Document to the Buyer If the vehicle is titled, all titled owners must sign the title assignment and identify the buyer exactly as the new owner. If the vehicle is not titled but is titleable in Vermont, the DMV requires the most recent registration certificate and bills of sale that show the full chain of ownership, per the title requirements.

Step 3 — Record the Sale Price and Mileage The parties should create written sale documentation showing the agreed purchase price, vehicle description, date of sale, and signatures. Vermont requires odometer disclosure for model year 2011 or newer vehicles, and the VT-005 is the standard state form for the bill of sale and odometer statement.

Step 4 — Complete the Vermont Application The buyer should complete the VD-119 so DMV can issue the new title and registration record.

Step 5 — Handle the Seller’s Plates and Registration Vermont does not allow the former owner’s registration to remain in effect after the transfer. The seller must remove the plates immediately, and any plate transfer or return must follow the statute.

Step 6 — Pay Tax and Fees at Registration For a taxable private sale, Vermont imposes a purchase and use tax at 6% of the purchase price or the clean trade-in value recognized by the DMV, whichever is greater, subject to any allowable credit or exemption shown on the DMV vehicle tax page. Title and registration fees are also due.

Step 7 — Submit the Transaction to DMV The buyer files the assigned title or other ownership papers, the application, the bill of sale and odometer record, and payment for taxes and fees. If the paperwork is mailed and the valuation is relevant, DMV instructs applicants to include a current printed J.D. Power value with mailed filings on the state transfer page.

What Documents Are Needed To Transfer a Car Title to a Family Member in Vermont

Required for All Transfers

• Registration, Tax, and Title Application (VD-119) — This is Vermont’s standard application for title and registration transactions. It identifies the vehicle, the new owner, the registration request, and the tax basis. The form is available as VD-119.
• Assigned certificate of title or other ownership document — For titled vehicles, the prior title must be assigned by all owners listed on it. For a 2009-or-older vehicle already registered in Vermont, the Vermont registration certificate may serve as proof of ownership under the DMV title guide.
• Lien release evidence — Any lien shown on the title must be released before DMV will process the ownership change.
• Odometer disclosure statement — Required for model year 2011 or newer vehicles. Vermont provides the VT-005 for the odometer record and sale information.

Additional Documents for Sale Transfers

• Bill of Sale and Odometer Disclosure Statement (VT-005) — For a family sale, this document records the sale price, date of transfer, vehicle description, mileage disclosure when required, and the parties’ signatures.
• Value support for mailed tax review, if applicable — When a mailed application depends on valuation rather than the stated price, DMV instructs applicants to include a current printed J.D. Power valuation on the state transfer instructions.

Documents Required in Specific Circumstances

• Certification of Tax Exemption (VT-014) — Required for a qualifying gift or inheritance claim and available as VT-014.
• Death certificate and probate papers — Required when a donor or owner is deceased and the transfer depends on estate authority, as described in the DMV gift instructions.
• Divorce decree or comparable court record — Required for a divorce-related exempt transfer. DMV states that the decree must identify the parties and show the date the divorce became final.
• Trust documents — Required when the transfer is made through or to a trust for an eligible person.
• Affidavit of Non-Titled Vehicle (VT-025) — Required in certain no-title ownership-chain cases described by DMV. That form must be signed in the presence of a notary under the DMV title requirements.
• Verification of VIN or HIN (VT-010) — Required in some non-titled-vehicle cases when DMV requests identification of the vehicle record.

How To Transfer a Car Title to a Family Member Online in Vermont

A standard family title transfer cannot be completed entirely online in Vermont. DMV’s public transfer instructions direct applicants to complete the title-and-registration application and submit the assigned ownership documents for processing. The state’s published guidance on person-to-person transfers does not provide a fully online private title reassignment service.

What's the Cost To Transfer a Car Title to a Family Member in Vermont?

Vermont’s registration-fee page notes that listed amounts may already include the Clean Air Fund fee and, where applicable, EV infrastructure charges. For taxable transactions, the purchase and use tax remains the main variable amount because it depends on the vehicle’s taxable value.

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