Search for how to gift a car in Pennsylvania and you will be told, repeatedly, that the sales tax exemption only applies between immediate family — spouses, parents and children, siblings, grandparents and grandchildren.
That is not what the Commonwealth’s own form says. The distinction matters, because believing the family-only version can cost someone $720 in tax they never owed.
What the affidavit actually says
The exemption is claimed on Form MV-13ST, the Affidavit of Gift. Its definitions section is short and unambiguous:
“GIFT: A vehicle transferred without consideration or compensation.” The form adds a note directly beneath it — this exemption may not be used if the “gift” is being given in exchange for goods, services, or monetary value.
There is no relationship requirement anywhere in that definition. The form does ask “Is the transferee related to the transferor?” with a yes or no box, and then asks you to identify the parties and their relationship — but the examples it prints include friend/friend alongside father/son and uncle/nephew.
In other words, Pennsylvania wants to know the relationship for its own records. It does not condition the exemption on there being one.
The real test
The question is not who you are to each other. It is whether anything of value moved in either direction.
Both parties sign a declaration under penalty of perjury. The transferor swears they received nothing of value; the transferee swears they gave nothing of value. Both declarations spell out what counts.
| Given or received | Is it consideration? | Gift exemption available? |
|---|---|---|
| Nothing at all | No | Yes |
| Money, any amount | Yes | No |
| Property or another vehicle | Yes | No |
| Services — labour, work performed | Yes | No |
| Forgiveness or waiver of a debt | Yes | No |
| Assuming an obligation or encumbrance | Yes | No |
That list is why the classic “I’ll sell it to you for a dollar” arrangement fails. A dollar is money, money is consideration, and the transaction is a sale — just one at a price low enough to attract attention. PennDOT compares reported sale prices against standard vehicle value guides and can assess tax on book value instead.
If it is genuinely a gift, gift it. If money is changing hands, treat it as a sale and pay the 6% — our breakdown of Pennsylvania title transfer costs covers what that actually comes to.
What a gift transfer still costs
The exemption removes the sales tax. It does not make the transfer free.
| Line item | Gifted vehicle | Sold for $12,000 |
|---|---|---|
| 6% sales tax | $0 — exempt | $720 |
| Certificate of title | $72 | $72 |
| Registration, one year | $48 | $48 |
| Plate transfer, if applicable | $11 | $11 |
| Total | $120–$131 | $840–$851 |
What you both need to bring
- The original certificate of title, unsigned. Signing before the notary voids it.
- Photo identification for both parties. The notary must verify identity before witnessing anything.
- Driver’s licence or photo ID numbers for the affidavit — businesses use their EIN instead.
- Proof of Pennsylvania insurance in the recipient’s name, before plates can be issued.
- A lien release, if the title shows a lienholder.
- The current odometer reading.
Both parties sign the affidavit, and both signatures on the title must be notarised — the same requirement that applies to any Pennsylvania transfer, explained in our guide to the notary rule. If either party cannot attend, a limited power of attorney is the accepted workaround.
The penalty for getting it wrong
This is not a form to treat casually. The affidavit states plainly that a false declaration can result in revocation of driving privileges for a period of one year — and that applies to whichever party made the false statement.
Layered on top is the perjury exposure both people accept when they sign. Against a saving of a few hundred dollars, dressing a sale up as a gift is a poor trade.
Where people go wrong
Three patterns account for most of the trouble we see with gift transfers.
The first is the dollar sale, covered above — well intentioned, and still a sale. The second is treating a gift as a way to settle something: handing over a car instead of repaying a loan, or in return for months of help with a house renovation. Both are consideration, and both disqualify the transfer.
The third is subtler. A parent gifts a car to a child who has been making the payments on it. If the child has been paying the parent, value has moved, and the transfer is a sale for the total of those payments. If the child was paying a lender directly on a loan in the parent’s name, the position is more complicated and worth asking about before you fill anything in.
None of this means gifts are hard to do. It means the paperwork should reflect what actually happened, and it is far cheaper to establish that beforehand than to unwind it later.
When gifting is genuinely the right move
Plenty of legitimate situations fit the definition cleanly:
- A parent handing an older car down to a child who has just started driving
- An adult child taking over a vehicle from a parent who has stopped driving
- Passing a car to a sibling, grandchild, or a friend who needs it, expecting nothing back
- Moving a vehicle between spouses
- Donating a working vehicle to someone in genuine need
What they share is not a family tree. It is that nothing came back the other way.
We handle gift transfers as a matter of routine through our Bethlehem title transfer service — affidavit, notarisation, title, and plates in one appointment. The form itself, with full instructions, is published by PennDOT as Form MV-13ST.
Frequently asked questions
Do you have to be related to gift a car in Pennsylvania?
No. Form MV-13ST defines a gift as a vehicle transferred without consideration or compensation, and the form’s own examples include friend to friend. The affidavit asks whether the parties are related, but a relationship is disclosed rather than required.
What is Form MV-13ST?
It is the Affidavit of Gift, submitted alongside Form MV-1, MV-4ST, or an Applicant Summary Statement when claiming the gift exemption — Exemption 13 — from Pennsylvania sales and use tax. Both the transferor and the transferee sign it.
Does a gifted car still cost anything?
Yes. The exemption removes the 6% sales tax only. You still pay the $72 certificate of title fee, and registration if the recipient needs plates — $48 for one year on a passenger car.
What if I sell the car to a family member for $1?
That is not a gift, because a dollar is consideration. It is a sale at a suspiciously low price, which invites PennDOT to assess tax on the vehicle’s book value instead. If it is genuinely a gift, transfer it as a gift with nothing changing hands.
What is the penalty for a false gift affidavit?
The form states that a false affidavit can result in revocation of your driving privileges for a period of one year, on top of the perjury exposure both parties accept when they sign.
Can I gift a car that still has a loan on it?
Not until the lien is satisfied and released. The lienholder is recorded on the title, and no transfer — gift or sale — can complete while an unsatisfied lien is on record.
Passing a car to someone in the Lehigh Valley?
We will confirm whether your transfer qualifies as a gift, complete the affidavit, notarise the title, and issue plates — in one visit. Hablamos Español.