DMVCosts

Gifting a Car in Arkansas: What It Actually Costs

Arkansas doesn't limit its gift-tax break to close relatives the way some states do - a bona fide gift, meaning no money, trade, or other consideration changes hands, owes zero sales tax regardless of who's receiving it. The catch is proving it: both the giver and the recipient sign a gift affidavit at the Revenue Office attesting that nothing was paid, and the office can and does deny the exemption if it suspects a disguised sale.

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  • Verified June 2026
Sales tax on a real gift
$0
Title fee
$10.00
Eligible recipients
Anyone - no family requirement
Required
Signed gift affidavit
Disguised sale
Full price-band tax applies

Your numbers

$

Local city + county tax is capped at the first $2,500 of the price no matter which city you pick - only the state portion scales with the full price.

Total to gift the car

$35.00

  • Sales tax (genuine gift, affidavit on file)$0.00
  • Title application fee$10.00
  • Registration$25.00

Claiming a gift when a payment actually occurred is treated as tax evasion, not a paperwork shortcut - the Revenue Office can and does reassess it as a sale.

Overview

Once the affidavit is on file, the rest of gifting a car in Arkansas is just the $10 title fee and whatever weight-based registration the recipient chooses to carry forward. Try to pass off a real sale as a 'gift' to dodge the used-vehicle price-band tax, though, and you're looking at the full tax bill plus scrutiny - the Revenue Office cross-checks bills of sale and can require documentation of the transaction history.

01 - Official fees

Arkansas gift a car fees at a glance

FeeAmount
Sales tax on a genuine gift$0.00
Title application fee$10.00
Registration (recipient's weight class)$17–$30
Disguised sale (money actually changed hands)used-vehicle price bands apply

Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your local Arkansas DFA Revenue Office - counties can add small local fees.

02 - Step by step

How to gift a car in Arkansas

  1. 1

    Confirm no money, services, or trade of any kind is involved - a true gift, not a discounted sale.

  2. 2

    Sign the title over to the recipient, and both of you complete the Revenue Office's gift affidavit.

  3. 3

    Bring the title, the affidavit, proof of insurance, and ID to any DFA Revenue Office.

  4. 4

    Pay the $10 title fee and the recipient's weight-based registration; no sales tax is assessed.

  5. 5

    Do this within 60 days of the gift date to avoid the same late-transfer penalty that applies to sales.

03 - Same state, other costs

More Arkansas vehicle costs

04 - Common questions

Arkansas gift a car FAQ

Does Arkansas require the giver and recipient to be related?

No. Unlike states that restrict tax-free gifting to immediate family, Arkansas's exemption is based on whether payment occurred - not the relationship. Gift a car to a friend, a cousin, or your child, and it's treated the same as long as it's genuinely free.

What does the gift affidavit actually say?

It's a signed statement from both parties confirming no money or consideration was exchanged for the vehicle. The Revenue Office keeps it on file as the basis for waiving sales tax, and it's cross-checked if the same vehicle shows up in a suspicious pattern of 'gifts' later.

Can I gift a car that still has a loan on it?

Not until the lender releases the lien - the title has to be clear, or the recipient has to assume/refinance the loan themselves, which typically turns the transaction into a sale rather than a gift for tax purposes.

What if I sell the car for $1 to 'basically' gift it?

A nominal sale still counts as a sale in Arkansas - the Revenue Office taxes it under the normal used-vehicle price bands based on fair value, not your $1 receipt, if it looks like an attempt to dodge tax. A real gift affidavit with $0 changing hands is the only route to the exemption.

Does the recipient still need to assess the car with the county?

Yes - a gifted vehicle is treated the same as any other for personal property tax purposes. The new owner must assess it with the county assessor in the following assessment window and keep the account current to renew registration later.

05 - 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 your local Arkansas DFA Revenue Office. 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.