Overview
There's a second, narrower no-tax path for immediate family: mother, father, spouse, daughter, son, sister, or brother. That exemption applies to an actual sale (money changes hands) rather than a gift, but only if the vehicle has been registered in the family member's name for at least 60 days and tax was already paid on its last sale. Give the same car to a cousin, in-law, or friend and neither exemption applies - DRS taxes it like any private sale, on the higher of your price or the vehicle's NADA value.
01 - Official fees
Connecticut gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Gift sales tax (Form AU-463) | $0.00 | |
| Title fee | $25.00 | |
| Lien recording fee | $10.00 | if the recipient finances against the title |
| Immediate family sale tax | $0.00 | mother/father/spouse/child/sibling, 60+ days owned, previously taxed |
| Non-qualifying 'gift' (friends, cousins, in-laws) | 6.35% / 7.75% | on the higher of price or NADA value |
| Late title/registration fee | $50.00 | same 30-day deadline applies to gifts |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with the Connecticut DMV (plus your town tax collector for the annual property tax) - counties can add small local fees.
02 - Step by step
How to gift a car in Connecticut
- 1
Confirm no money, property, service, or debt assumption is changing hands - that disqualifies the gift exemption.
- 2
Sign the title over to the recipient and complete Form AU-463, the Motor Vehicle and Vessel Gift Declaration.
- 3
Fill out Form H-13B for the new registration and title, referencing the AU-463 gift declaration.
- 4
Bring both forms, the signed title, insurance, and ID to the DMV within 30 days of the transfer.
- 5
Pay the $25 title fee (no sales tax) plus any registration due - the 30-day deadline and $50 late fee still apply.
03 - Same state, other costs
More Connecticut vehicle costs
04 - Common questions
Connecticut gift a car FAQ
What form do I need to gift a car in Connecticut?
Form AU-463, the Motor Vehicle and Vessel Gift Declaration, signed by whoever is giving the vehicle away. Submit it alongside Form H-13B when the recipient registers and titles the car - no sales tax is due as long as no consideration changed hands.
Is gifting to my adult child different from selling it to them for $1?
Yes, and gifting is cleaner. A $1 'sale' to a non-qualifying relative still gets compared against the vehicle's NADA value and taxed accordingly. A properly declared gift (AU-463) or a true immediate-family sale that meets the 60-day/previously-taxed rule both avoid the tax outright - a token sale price does not.
Who exactly qualifies for the immediate-family sale exemption?
Only mother, father, spouse (including civil union), daughter, son, sister, or brother - and only if the vehicle was registered in that family member's name for at least 60 days before the transfer and was already taxed on its last sale. Grandparents, in-laws, aunts, uncles, and cousins don't qualify for this specific exemption (though a genuine gift under AU-463 can still work for them).
Does the person receiving a gifted car pay any tax later?
No state gift tax in Connecticut beyond the sales tax exemption itself. Very large gifts can touch federal gift-tax reporting for the giver, but that's an IRS question for the donor, not a DMV or DRS charge on the recipient.
Can I gift a car that still has a loan on it?
Not until the lien is released - the lender holds the title until the loan is paid off. Once released, the gift transfer proceeds normally with Form AU-463.
Does a gifted car still need emissions testing and registration like normal?
Yes - gifting only removes the sales tax. The recipient still registers the vehicle, pays the standard registration stack, and keeps up with emissions testing on the usual schedule for that vehicle's age.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.