How to Gift a Car in Washington
Last verified: October 2026 against Washington DOL and DOR sources
A gifted car is exempt from Washington use tax when the previous owner paid Washington sales or use tax and nothing is given in return.
Here is how to check the exemption and transfer the car.
Step by step
- 1
Check that the gift is tax-free
A gift or inheritance is exempt when the previous owner paid Washington sales or use tax and there is no consideration. If money, goods, or services are exchanged, use tax is due.
A car with a loan on it generally does not qualify. The owner must pay off the loan before the gift; otherwise it is treated as a sale and taxed on fair market value.
- 2
Check a gift from another state
A gift from a state or province without sales tax, such as Oregon, pays use tax. It does not if the giver owned the car for 7 years or more and lives in a state or province with sales tax.
If the car was registered in another state, credit is given for tax paid there.
- 3
Complete the title and bill of sale
The giver signs the title, and everyone listed on it must sign. On the Vehicle/Vessel Bill of Sale, enter zero as the price for a gift or inheritance. Complete the odometer disclosure for a 2011 or newer model.
- 4
Fill out the Vehicle Title Application
Sign it in front of the licensing agent, or in front of a notary if you sign before you go. Bring proof that the giver paid sales or use tax.
- 5
Transfer within 15 days
The 15-day deadline applies to gifts too: $50 on the 16th day, then $2 a day up to $125. The title is $39.50.
Washington plates can stay on the car when it comes from your spouse or domestic partner, or as a gift or inheritance from a family member.
What to bring
- The title, signed by everyone listed on it
- Vehicle/Vessel Bill of Sale with a price of zero
- Vehicle Title Application
- Proof that the giver paid sales or use tax
- Odometer disclosure, for 2011 and newer models
- Proof the loan is paid off, if the car had one