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Gifting a Car in Arizona: Simpler Than Most States

Many states carve out a special discounted 'gift tax' rate for cars given to family, with a list of who qualifies and an affidavit to prove it. Arizona skips all of that - because it doesn't tax private-party vehicle transfers to begin with. A $0 'gift' and a $40,000 arm's-length private sale get treated identically for tax purposes: no state, county, or city transaction privilege tax on either one.

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Your numbers

$

Assessed value starts at 60% of MSRP and drops 16.25% every year that follows.

Official fees

Arizona gift a car fee chart

Title fee

$4.00

Registration fee (if due)

$8.00

Air quality research fee (if due)

$1.50

VLT

$2.80–$2.89 / $100

based on MSRP and vehicle age, same as any transfer

Arizona sales tax on the gift

$0

gifts fall under the same casual-sale exemption as any private sale

Figures verified July 2026 against official sources (listed below). Always confirm the final amount with Arizona MVD (ADOT) - counties can add small local fees.

Official Arizona forms you'll need

  • 96-0236Title and Registration Application

    A gifted vehicle uses the signed title (or Title Transfer Bill of Sale 38-1306) plus the standard 96-0236 application - Arizona charges no sales tax on private-party transfers.

Get the current version of each form from Arizona MVD (ADOT) before you file - agencies revise forms, and offices reject outdated ones.

Step by step

How to gift a car in Arizona

  1. 1

    Sign over the title to the recipient - write 'Gift' as the price on the bill of sale for your own records.

  2. 2

    Recipient applies for title within 15 days of the transfer date, at an MVD office, third-party office, or AZ MVD Now.

  3. 3

    MVD calculates VLT from the vehicle's MSRP and age, exactly as it would for a purchase.

  4. 4

    Pay the $4 title fee, plus registration ($8 + $1.50) if it's due at the same time.

  5. 5

    Giver files a free sold notice online the same day to close out their own liability.

Gift tax
None - not applicable
Title fee
$4.00
Special gift form
Not required
VLT
Still owed in full
Title deadline
15 days

Overview

That means gifting a car in Arizona to your kid, your neighbor, or a total stranger costs exactly the same: the $4 title fee, VLT based on the car's MSRP and age, and the $8 registration plus $1.50 air quality fee if registration is due. There's no eligible-relative test to pass and no notarized gift affidavit MVD requires - just the standard title and registration paperwork with a bill of sale noting it was a gift (useful for your own records, not required for a tax break that doesn't exist here).

The only real planning point: VLT doesn't disappear because the car changed hands for free. The recipient owes it in full, based on the vehicle's original MSRP and its current age - same as if they'd bought it outright.

Same state, other costs

More Arizona vehicle costs

Common questions

Arizona gift a car FAQ

Do I need a special form to gift a car in Arizona?
No. Unlike states with a dedicated gift-tax affidavit, Arizona doesn't distinguish a gift from any other private transfer for tax purposes, so there's no special form beyond the standard title application and a bill of sale noting the transfer was a gift.
Does the person receiving the gifted car owe any sales tax?
No - Arizona doesn't tax private-party vehicle transfers, gift or sale. They'll owe the $4 title fee and VLT/registration if due, but zero transaction privilege tax on the vehicle's value.
Who counts as 'eligible family' for the Arizona gift process?
There's no such list in Arizona because there's no separate gift-tax rate to qualify for. You can gift a car to a spouse, a cousin, or a friend and the cost is identical - the $4 title fee plus VLT and registration.
Does the recipient still pay VLT even though they didn't pay for the car?
Yes, in full. VLT is based on the vehicle's original MSRP and how many years it's been registered - it has nothing to do with what the current owner paid (or didn't pay) for the car.
What if the giver still owes money on the car?
The lender holds the title until the loan is paid off, so it can't be gifted (or sold) free and clear until the lien is released. Paying it off, or having the recipient take over the loan, comes first.
Is there a federal tax angle to worry about?
Arizona has no state gift tax at all. Very high-value gifts could theoretically brush against the federal gift-tax annual exclusion, but that's an IRS question for the giver, not something Arizona MVD tracks.

Receipts

Official sources

Every number on this page comes from these documents - check them yourself.

Disclaimer

DMVCosts provides fee estimates for general informational purposes only - it is not legal, tax, or financial advice, and no calculator can account for every county surcharge, exemption, or mid-year rate change. Figures are verified against official sources on the date shown, but fees change over time.

The final, binding amount is always the one quoted by Arizona MVD (ADOT). Confirm with them before making payment decisions. To the fullest extent permitted by law, DMVCosts disclaims all liability for decisions made based on these estimates.