Skip to main content
DMVCosts

Gifting a Car in Indiana: What It Really Costs

Indiana runs two separate tax-free paths for a vehicle changing hands without a sale, and mixing them up is the most common gift-transfer mistake at the BMV counter. The outright gift exemption (Exemption 7 on Form ST-108E) waives the 7% sales tax whenever no money or debt changes hands, regardless of who's giving or receiving it - a friend qualifies exactly the same as a daughter. The intrafamilial exemption (Exemption 11) is a different, narrower rule: it lets you add or remove a spouse, child, parent, grandparent, or sibling on an existing title without treating it as a taxable sale, even if the paperwork isn't structured as a classic gift.

100% free · no signupverified July 2026

Your numbers

$

Official fees

Indiana gift a car fee chart

Sales tax, outright gift (Exemption 7)

$0

ST-108E required

Sales tax, intrafamilial title change (Exemption 11)

$0

spouse/child/parent/grandparent/sibling

Sales tax, assumed loan balance

7% of debt

taxed like a purchase

Title application fee

$15.00

Registration (if also transferring)

varies

base fee + excise tax + county wheel tax, regardless of gift status

Figures verified July 2026 against official sources (listed below). Always confirm the final amount with the Indiana Bureau of Motor Vehicles (BMV) - counties can add small local fees.

Official Indiana forms you'll need

  • State Form 205Application for Certificate of Title for a Vehicle

    The regular State Form 205 title application is used, and the sales/use-tax exemption for a gifted vehicle is claimed on Indiana DOR Form ST-108E (State Form 48841, Certificate of Gross Retail or Use Tax Exemption) submitted at the BMV license branch.

Get the current version of each form from the Indiana Bureau of Motor Vehicles (BMV) before you file - agencies revise forms, and offices reject outdated ones.

Step by step

How to gift a car in Indiana

  1. 1

    Decide which exemption fits: a true no-strings gift (Exemption 7) or an intrafamilial title change (Exemption 11) for a spouse, child, parent, grandparent, or sibling.

  2. 2

    Sign the title over to the recipient, noting it's a gift rather than listing a sale price.

  3. 3

    Both parties complete Form ST-108E, marking the correct exemption code and reason.

  4. 4

    Bring the title, the ST-108E, proof of Indiana insurance, and ID to any BMV branch within 45 days.

  5. 5

    Pay the $15 title fee (and registration if it's due) - no sales tax if the exemption is properly documented.

Outright gift
$0 tax (Exemption 7)
Family title change
$0 tax (Exemption 11)
Exemption 7 eligible
Anyone, no relation needed
Title fee
$15
Assumed loan balance
Taxed as consideration

Overview

Either way, sales tax drops to zero but nothing else does: you still owe the $15 title fee and, if you're also transferring registration, the base fee, excise tax, infrastructure fee, and any county wheel tax that vehicle carries regardless of how it changed hands. Take over a remaining loan balance on the gifted car, and Indiana taxes that assumed debt as if it were the purchase price.

Same state, other costs

More Indiana vehicle costs

Common questions

Indiana gift a car FAQ

Do I have to be related to gift a car tax-free in Indiana?
No - that's the point of the outright gift exemption. As long as no money or debt assumption is involved, Indiana waives the 7% tax whether you're giving the car to your son or your neighbor. Form ST-108E documents it either way.
Then what's the family exemption for?
Exemption 11 covers a narrower, specific situation: changing an existing title to add or remove a spouse, child, parent, grandparent, or sibling - for example, adding your spouse as a co-owner on a car you already own - without it counting as a sale, even outside a classic gifting scenario.
Can I gift a car that still has a loan on it?
Not cleanly - the lienholder has to release the title first. If the recipient takes over the remaining loan balance instead, Indiana taxes that assumed debt at 7% as consideration, even though no cash changed hands between you and the recipient.
Is Form ST-108E mandatory?
Yes. Without a properly completed ST-108E citing the correct exemption code, the BMV branch will assess the standard 7% sales tax on the vehicle's fair market value, even for a true gift between parents and children.
Does the recipient owe anything else besides the title fee?
If they're registering the vehicle for the first time in their name, yes - the usual $21.35 base fee, $15 infrastructure fee, the vehicle's excise tax, and any county wheel tax, none of which the gift exemption touches. Only the sales tax line goes to zero.
What about a car I inherited rather than was gifted?
Inherited vehicles use different BMV paperwork tied to probate or a small-estate affidavit rather than ST-108E, but they're also generally exempt from the 7% sales tax - check with the branch for the exact documents your estate situation requires.

Receipts

Official sources

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

Everywhere else

Gifting a Car: Taxes & Fees by state

Fees and rules are different in every state. Pick yours for exact numbers.

each state hand-verified against its DMV before it goes live

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 the Indiana Bureau of Motor Vehicles (BMV). 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.