Official fees
Kentucky gift a car fee chart
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 July 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.
Official Kentucky forms you'll need
- TC 96-182Application for Kentucky Certificate of Title or Registration
A gifted vehicle uses the regular TC 96-182 title application, and motor vehicle usage tax is assessed on trade-in value unless an exempt family relationship (spouse, parent/child, grandparent/grandchild) applies.
Get the current version of each form from your county clerk's office (Kentucky Transportation Cabinet) before you file - agencies revise forms, and offices reject outdated ones.
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.
- Qualifying family
- $0 usage tax
- Who qualifies
- Spouse, parent/child, grandparent/grandchild
- Requirement
- Vehicle previously KY-titled
- Required form
- 71A101
- Non-qualifying gift
- Full 6% of NADA value
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.
Same state, other costs
More Kentucky vehicle costs
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.
Receipts
Official sources
Every number on this page comes from these documents - check them yourself.
