Overview
Excise tax, the $33 title fee, and the $35 registration still apply to a gifted vehicle exactly as they would to any other transfer - the gift exemption only removes the sales tax line. Both parties should document the transfer as a gift on the bill of sale so the town doesn't default to taxing it as a sale.
01 - Official fees
Maine gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Sales tax on a true gift | $0.00 | |
| Sales tax if recipient assumes debt/pays anything | 5.5% of fair market value | |
| Excise tax (unchanged by gift status) | 24 → 4 mills | of original MSRP, by vehicle age |
| Title application fee | $33.00 | |
| Registration | $35.00/yr |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your town office (Maine BMV) - counties can add small local fees.
02 - Step by step
How to gift a car in Maine
- 1
Confirm no money, trade, or assumed debt is involved - that's what makes it a true gift under Maine law.
- 2
Sign the title over to the recipient and write 'Gift' where a sale price would normally go.
- 3
Complete a bill of sale documenting it as a gift, for the town's records.
- 4
Bring the title, bill of sale, and proof of insurance to the town office.
- 5
Pay excise tax, the $33 title fee, and $35 registration - no sales tax applies to a genuine gift.
03 - Same state, other costs
More Maine vehicle costs
04 - Common questions
Maine gift a car FAQ
Do I need to be family to gift a car tax-free in Maine?
No - unlike states with a specific eligible-relative list, Maine's exemption turns entirely on whether money or debt changed hands, not on the relationship. A true gift to a friend is just as tax-free as one to a child.
My son is taking over my remaining loan payments - is that still a gift?
No. Assuming a loan balance counts as consideration under Maine law, so the transfer is taxed at 5.5% of the vehicle's fair market value, exactly as if he'd bought it - the family relationship doesn't change that.
Do I still owe excise tax on a gifted car?
Yes. Excise tax is tied to the vehicle itself - its original MSRP and model-year age - not to how you acquired it. A gifted car is excised the same as a purchased one.
What paperwork proves it was a gift, not a sale?
A bill of sale (or the notation on the title assignment) stating the transfer was a gift for no consideration. Keep it simple and explicit - the town uses this document to decide whether sales tax applies.
Can I 'sell' the car for $1 instead of calling it a gift?
It doesn't help - Maine taxes based on actual fair market value when a sale price looks nominal or unrealistic, similar to how a token $1 sale is treated skeptically elsewhere. A properly documented true gift is the cleaner, cheaper route.
Does the recipient owe any other tax on a gifted car?
No state income tax - Maine doesn't treat a gift as income. The only cost beyond excise, title, and registration would be a federal gift-tax filing question for the giver on a very high-value vehicle, which is an IRS matter, not something the town handles.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.