How to Gift a Car in New Jersey in 2026
A motor vehicle gift in New Jersey involves the transfer of ownership from one person to another without consideration. The donor must execute an assignment of the certificate of title on the reverse side, which the recipient then presents at a motor vehicle agency along with supporting documentation.
How Does Gifting a Car in New Jersey Work?
In New Jersey, the transfer of a motor vehicle as a gift proceeds through the same administrative channels as a sale, with the primary distinction being that a true gift carries no purchase price and incurs no sales tax. The process requires an in-person appearance at a motor vehicle agency and the submission of the properly executed title, odometer disclosure, and other required documents. Appointments must be scheduled in advance, as all new registrations, title transfers, and duplicate titles are processed by appointment only at vehicle centers throughout the state.
The donor must sign the assignment section on the reverse of the title, entering the recipient's name and address exactly as they appear on identification documents. The recipient then completes their section of the assignment and visits a motor vehicle agency to formally transfer the title into their name. At that time, the recipient pays applicable title and registration fees, provides proof of insurance, and receives license plates. The entire transaction must be completed within 10 working days of the gift transfer date to avoid a $25 penalty.
New Jersey Car Gifting Rules You Should Know
Title Status
In New Jersey, most motor vehicles operated on public roads must be titled before registration. Nearly all passenger vehicles and light-duty vehicles, regardless of model year or weight, must be titled. Vehicles with a gross vehicle weight rating of 8,500 pounds or less that are designed for passenger use are classified as light-duty vehicles and must be titled. Historic vehicles may be registered under a special historic vehicle registration program with reduced fees.
When a title is held jointly by two owners, both individuals must sign the assignment section if the names are joined by the word "and." When names are joined by "or," either owner may sign. Married couples or domestic partners who use a vehicle for family purposes automatically hold title as joint owners with rights of survivorship unless expressly designated otherwise.
License Plates
When vehicle ownership transfers, the current license plates must be removed and either surrendered to a motor vehicle agency or transferred to another vehicle owned by the same person. Plates may be transferred only to another vehicle registered to the same owner; they cannot be transferred to a different owner. If the recipient intends to use existing plates from another vehicle, a registration transfer is available for $4.50 plus any prorated registration fee adjustment.
Taxes and Fees
A motor vehicle designated as a gift is exempt from the 6.625% New Jersey sales tax provided the gift designation appears on the title. The recipient must indicate "GIFT" on the purchase price line on the reverse of the title. If documentation appears to have been altered or if the gift designation is questioned, the motor vehicle commission may request additional supporting documentation to verify the bona fide nature of the transfer.
Title transfer fees are $60 for a standard vehicle without a lien. If the vehicle carries an existing lien from a financial institution, the title transfer fee is $85. If two lienholders are named on the title, the fee is $110. Registration fees vary by vehicle model year and gross weight.
Step-By-Step Process To Gift a Car in New Jersey
Step 1: Verify the vehicle title status and lien status.
Obtain the current certificate of title from the vehicle owner. If the vehicle is financed, note the lien holder's name and address. Verify that both owners, if applicable, are prepared to sign the assignment, particularly if the names are joined by "and."
Step 2: Record the current odometer reading.
Obtain an accurate odometer reading at the time of the gift transfer. This reading must be disclosed on the Odometer Disclosure Statement. Both the donor and recipient must sign the odometer disclosure form, certifying whether the reading represents actual mileage or if the actual mileage is not known.
Step 3: Complete the title assignment.
The donor signs the assignment section on the reverse of the title, entering the recipient's full name, address, and the current odometer reading. The signature must match the donor's name as it appears on the face of the title. The recipient then completes the recipient's section of the reverse, signing and entering their New Jersey driver's license number or Entity Identification Number (EIN).
Step 4: Indicate the gift on the title.
The donor enters "GIFT" on the purchase price line on the reverse of the title. If the vehicle carries an existing lien, the title may require a lien satisfaction letter or a notation that the lien is being transferred to the recipient.
Step 5: Prepare supporting documents.
Collect the properly signed title, completed Odometer Disclosure Statement, proof of New Jersey insurance, and the recipient's driver's license or other government-issued identification. If the gift is being transferred on behalf of the donor or recipient through a power of attorney, prepare a notarized general or limited Power of Attorney or general letter of authorization.
Step 6: Schedule an appointment at a motor vehicle agency.
The recipient must schedule an appointment at a vehicle center to complete the transfer. Appointments are scheduled on a rolling 30-day basis. Walk-in services are not available for title transfers; all new registrations and title transactions require advance appointments.
Step 7: Present documents and complete the transfer.
At the motor vehicle agency, the recipient presents the signed title, odometer disclosure statement, proof of insurance, and identification. The recipient pays the applicable title transfer fee ($60 for a standard vehicle or $85 if one lien is noted, or $110 if two lienholders are named), along with the registration fee corresponding to the vehicle's weight class and model year. The motor vehicle commission accepts American Express, Visa, MasterCard, Discover, checks, money orders, and cash. Upon completion, the recipient receives a registration permit and license plates.
Step 8: Complete the transfer within the required timeframe.
The title transfer must be completed within 10 working days of the gift date to avoid a $25 penalty. If the recipient is a new New Jersey resident, the vehicle must be titled and registered within 60 days of establishing residency.
Documents Needed for Gifting a Car in New Jersey
The following documents are required to transfer a motor vehicle as a gift in New Jersey:
- The original certificate of title with the assignment section on the reverse properly completed and signed by the donor
- A completed odometer disclosure statement signed by both the donor and recipient, certifying the current mileage
- Proof of New Jersey liability insurance, presented as an insurance identification card or proof of coverage from an approved insurance provider
- The recipient's New Jersey driver's license or other government-issued photo identification
- The recipient's driver's license number, to be entered on the title
- Proof that the vehicle is not subject to a lien, or documentation of lien satisfaction if applicable
- A general letter of authorization (LOA-1) or notarized power of attorney if either party is signing through an authorized representative
If the recipient is a new New Jersey resident, additional documentation showing proof of New Jersey residency, such as a utility bill or lease agreement, may be requested.
Applicable Fees and Taxes When Gifting a Car in New Jersey
| Fee or Tax | Amount | Notes |
|---|---|---|
| Title Transfer Fee (Standard Vehicle) | $60.00 | Applies to vehicles without liens |
| Title Transfer Fee (Financed Vehicle - One Lien) | $85.00 | Applies when one lienholder is noted on title |
| Title Transfer Fee (Financed Vehicle - Two Liens) | $110.00 | Applies when two lienholders are noted on title |
| Registration Transfer Fee | $4.50 | Plus any prorated increase in the registration fee due to a change in weight class |
| Registration Fee (Vehicles older than 2 years, under 3,500 lbs.) | $46.50/year | Assessed annually at registration renewal |
| Registration Fee (Vehicles within 2 years, under 3,500 lbs.) | $59.00/year | Assessed annually at registration renewal |
| Registration Fee (Vehicles older than 2 years, over 3,500 lbs.) | $71.50/year | Assessed annually at registration renewal |
| Registration Fee (Vehicles within 2 years, over 3,500 lbs.) | $84.00/year | Assessed annually at registration renewal |
| Senior Citizen/Disability Discount (Passenger Vehicles) | -$7.00 | Reduces applicable registration fee by $7.00 |
| Zero Emission Vehicle (ZEV) Annual Fee | $250.00 | Plus additional $10/year for four years; effective July 1, 2024 |
| Late Penalty (Title Transfer Not Completed Within 10 Working Days) | $25.00 | Applied if transfer deadline is missed |
| Sales Tax on Gift Vehicle | $0.00 | No sales tax applies if designated "GIFT" on title |
New Jersey imposes no sales tax on motor vehicles designated as gifts. However, if the vehicle is financed and a lien is held by a financial institution, the title fee increases to $85 (or $110 if two lienholders are named). Registration fees vary by model year and gross vehicle weight rating; the recipient should contact a motor vehicle agency or use the registration fee calculator to determine the exact registration fee applicable to the specific vehicle.
Contact Information
New Jersey Motor Vehicle Commission
225 East State Street, Trenton, NJ 08666
Phone: (609) 292-6500
Official Website: New Jersey Motor Vehicle Commission
