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.
01 - Official fees
Indiana gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| 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 June 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.
02 - Step by step
How to gift a car in Indiana
- 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
Sign the title over to the recipient, noting it's a gift rather than listing a sale price.
- 3
Both parties complete Form ST-108E, marking the correct exemption code and reason.
- 4
Bring the title, the ST-108E, proof of Indiana insurance, and ID to any BMV branch within 45 days.
- 5
Pay the $15 title fee (and registration if it's due) - no sales tax if the exemption is properly documented.
03 - Same state, other costs
More Indiana vehicle costs
04 - 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.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.