Official fees
Colorado gift a car fee chart
Sales tax on bona fide gift
$0
Sales tax on assumed debt
district rate
if recipient takes over any loan balance
Specific Ownership Tax
2.1%→0.45%→$3
still based on original MSRP and age
Title application fee
$7.20
Registration fee stack
≈ $50-$65/yr
if also transferring/renewing registration
Figures verified July 2026 against official sources (listed below). Always confirm the final amount with your county motor vehicle office (Colorado DMV sets the rules) - counties can add small local fees.
Official Colorado forms you'll need
- DR 2395Application for Title and/or Registration
The regular DR 2395 and assigned title are used, with the transfer documented as a gift/$0.
Get the current version of each form from your county motor vehicle office (Colorado DMV sets the rules) before you file - agencies revise forms, and offices reject outdated ones.
Step by step
How to gift a car in Colorado
- 1
Confirm no money or debt assumption is involved - that's what keeps it a tax-free gift under Colorado rules.
- 2
Sign the title over to the recipient, noting it's a gift rather than listing a sale price.
- 3
Complete the odometer disclosure and provide a signed statement (notarized or witnessed at the county) confirming no consideration was paid.
- 4
Bring the title, statement, proof of Colorado insurance, and ID to the county motor vehicle office within 60 days.
- 5
Pay the Specific Ownership Tax (based on the car's original MSRP and age) plus the $7.20 title fee - no sales tax is charged.
- Sales tax on a gift
- $0 (no consideration)
- Eligible
- Anyone - no family limit
- SOT
- Still due, by age/MSRP
- Title fee
- $7.20
- Assumed loan balance
- Taxed as consideration
Overview
What a gift can't skip is the Specific Ownership Tax. Because SOT is tied to the vehicle's original MSRP and age rather than the sale price, it's owed at registration regardless of whether money changed hands - a gifted 3-year-old car with an original $28,000 sticker still carries about $286 in SOT. Add the flat $7.20 title fee and, for a debt-free gift, that's the entire bill.
Same state, other costs
More Colorado vehicle costs
Common questions
Colorado gift a car FAQ
- Does the recipient have to be family to get the tax-free gift treatment in Colorado?
- No - that's Colorado's distinctive rule. Any bona fide gift with no payment or consideration is exempt from sales tax, whether the recipient is a spouse, a friend, or a stranger. What matters legally is that nothing of value changed hands, not the relationship.
- If I still owe money on the car, can I gift it?
- You can, but the recipient assuming your remaining loan balance counts as consideration under Colorado tax rules - the county will charge sales tax on the amount of debt assumed, at your local combined rate, even though no cash changed hands directly between you.
- Why do I still owe money if it's a free gift?
- The Specific Ownership Tax isn't a sales tax - it's an annual property tax on the vehicle itself, calculated from its original MSRP and age. It's due at registration no matter how the vehicle changed hands, gift or purchase.
- What paperwork proves it was a gift, not a sale?
- There's no statewide standardized 'gift affidavit' form the way some states use - Colorado counties generally want the title marked as a gift and a signed, often notarized statement that no money or consideration was exchanged. Check with your specific county motor vehicle office for their preferred documentation.
- Does gifting a car reset the Specific Ownership Tax clock?
- No - SOT is based on the vehicle's model year, not who owns it or when it changed hands. A gifted car keeps counting from its original model year, so a 6-year-old car is still in the flat 0.45% band regardless of the gift.
- Can I gift a car to someone out of state?
- Colorado's gift tax exemption only governs Colorado's own sales tax; the recipient's home state sets its own rules for how (or whether) it taxes an incoming gifted vehicle when they title it there.
Receipts
Official sources
Every number on this page comes from these documents - check them yourself.
