Overview
Miss that narrow family definition - a sibling, aunt, uncle, cousin, in-law, or friend - and Kentucky treats the transfer as an ordinary sale. Even at $0 consideration, the county clerk taxes the vehicle's NADA average retail value at the full 6%. There's no Kentucky equivalent of a cheap flat gift fee for non-qualifying relationships; it's the full usage tax or nothing.
01 - Official fees
Kentucky gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Qualifying family transfer | $0 tax | spouse, parent/child, stepparent/stepchild, grandparent/grandchild |
| Title application fee (always due) | $9.00 | |
| Non-qualifying "gift" (friend, sibling, cousin, etc.) | 6% of NADA value | taxed as a full sale |
| Lien filing fee (if any lien remains) | $22.00 |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your county clerk's office (Kentucky Transportation Cabinet) - counties can add small local fees.
02 - Step by step
How to gift a car in Kentucky
- 1
Confirm the relationship qualifies under KRS 138.470(6): spouse, parent/child (incl. step or adopted), or grandparent/grandchild.
- 2
Confirm the vehicle is already titled or registered in Kentucky - the exemption doesn't apply to a vehicle brought in from out of state as part of the gift.
- 3
Giver signs the title over; write the relationship clearly where consideration would normally go.
- 4
Complete the Motor Vehicle Usage Tax Multi-Purpose Form (71A101) claiming the family exemption.
- 5
Recipient brings the title, form, proof of insurance, and ID to the county clerk and pays only the $9 title fee.
03 - Same state, other costs
More Kentucky vehicle costs
04 - Common questions
Kentucky gift a car FAQ
Who counts as "family" for Kentucky's gift tax exemption?
Spouse, parent or stepparent, child or stepchild (including legally adopted), and grandparent or grandchild - the relationship can be by blood, marriage, or adoption. That's the complete list under KRS 138.470(6). Siblings, aunts, uncles, cousins, in-laws, and unmarried partners are NOT included.
Does the exemption apply if I just brought the car into Kentucky to give to my kid?
No - the vehicle must already be titled or registered in Kentucky for the family exemption to apply. A car titled out of state that you're gifting to a Kentucky-resident child gets titled here as a new-resident transaction, taxed on the vehicle's average NADA trade-in value, not treated as an exempt family gift.
What if I gift a car to my sister or a close friend?
Full 6% usage tax applies, based on the vehicle's NADA average retail value since there's no sale price to point to. Kentucky has no reduced flat-fee option for non-qualifying gifts - it's either fully exempt (qualifying family) or fully taxed like any other transfer.
Is Form 71A101 mandatory to claim the exemption?
Yes. The Motor Vehicle Usage Tax Multi-Purpose Form documents the exempt relationship for the county clerk. Without it filed correctly, the clerk has no basis to waive the usage tax even for an obviously qualifying parent-to-child transfer.
Do both people need to be Kentucky residents?
Yes - the exemption requires all parties to the transfer to be Kentucky residents at the time of transfer. A gift to an out-of-state child, for instance, is handled under that child's home state's rules, not Kentucky's.
Can I gift a car that still has a loan on it?
Not cleanly - the lienholder has to release the lien first, since they hold the title. Once released, the gift transfer proceeds normally with the family exemption if it qualifies.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.