Overview
What the tax exemption doesn't buy you is a pass on the safety inspection. Maryland only waives the inspection for spouse-to-spouse and parent-child gifts specifically - a sibling, grandparent, or aunt/uncle gift is excise-tax-free under VR-103 but still needs a passing inspection before the MVA will issue a new title, typically $75–$150 at a licensed station. The $200 title fee applies regardless of who's involved.
01 - Official fees
Maryland gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Excise tax, VR-103 qualifying gift | $0 | |
| Title fee (still due on any gift) | $200 | |
| Safety inspection, spouse or parent-child gift | $0 | specifically exempt |
| Safety inspection, sibling/grandparent/aunt-uncle gift | $75–$150 | tax-exempt but not inspection-exempt |
| Non-qualifying 'gift' (friend, cousin, in-law) | 6.5% of book value | no sale price to substitute, so book value applies |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with the Maryland MVA - counties can add small local fees.
02 - Step by step
How to gift a car in Maryland
- 1
Confirm the relationship is on Maryland's list: spouse, parent/child, grandparent/grandchild, sibling, or aunt/uncle-niece/nephew.
- 2
Complete Form VR-103, Application for Maryland Gift Certification, with both parties' information and proof of the relationship if last names differ.
- 3
If the gift isn't between spouses or a parent and child, get the vehicle safety-inspected - the certificate lasts 90 days.
- 4
Sign the title over to the recipient and submit it with VR-103 and the Application for Certificate of Title (VR-005).
- 5
Pay the $200 title fee at an MVA branch or tag & title service; no excise tax is due if VR-103 is accepted.
03 - Same state, other costs
More Maryland vehicle costs
04 - Common questions
Maryland gift a car FAQ
Who qualifies as family for Maryland's gift tax exemption?
Spouses, parents and children (including step and adopted), grandparents and grandchildren, siblings, and aunts/uncles gifting to nieces/nephews (or vice versa). Boyfriends, girlfriends, in-laws, cousins, and unmarried partners do not qualify - those transfers are taxed like a sale.
If the excise tax is exempt, is the whole gift free?
No - the $200 title fee is due regardless of who's involved, and unless the gift is specifically between spouses or a parent and child, the vehicle still needs a passing safety inspection (typically $75–$150) before the MVA issues the new title.
Why does my sister's gift skip the tax but not the inspection?
Maryland runs two separate exemption lists. VR-103's tax exemption covers a wide family circle - spouses, parents/children, grandparents, siblings, aunts/uncles/nieces/nephews. The safety-inspection exemption under COMAR 11.14.01.14 is much narrower: only spouse-to-spouse and parent-child transfers. A sibling gift is tax-free but inspection-required.
Can I gift a car to my cousin tax-free?
No - cousins aren't on Maryland's VR-103 list. Since there's no arm's-length sale price for a gift, the MVA taxes it at 6.5% of the vehicle's NADA book value, the same treatment as any transfer with no documented purchase price.
Does the recipient need to prove the relationship?
If the giver and recipient don't share a last name, VR-103 requires supporting documentation - a marriage certificate, birth certificate, or similar proof - before the MVA will accept the exemption.
Can I gift a car that still has a loan on it?
Only after the lien is released. The lender holds the title until the loan is paid off; once you have a clean, lien-free title, VR-103 and the standard gift process apply. If the recipient is taking over the loan instead, that's a refinance in their name, not a gift.
Do gifted cars still need to be registered separately?
Yes - the title transfer and the registration are two different steps. After the gift is titled, the recipient pays the normal two-year registration fee for the vehicle's weight class, same as any other transfer.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.