Overview
Give the same car to a friend, cousin, or unmarried partner and Michigan sees a taxable transfer, full stop - 6% is owed on the purchase price or fair market value, whichever is higher, with no gift discount. And the family exemption isn't a free pass to lie about it: the Department of Treasury can ask for proof of the relationship later, and a false claim risks a penalty of up to 175% of the tax that should've been paid, plus possible criminal referral.
01 - Official fees
Michigan gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Title fee (any transfer) | $15.00 | |
| Family transfer sales/use tax | $0 | spouse, parent, child, sibling, stepparent/stepchild, stepsibling, half-sibling, grandparent/grandchild, father/mother/son/daughter/brother/sister-in-law, grandparent-in-law, or legal ward/guardian |
| Non-qualifying 'gift' | 6% of price or fair market value | whichever is higher |
| False exemption claim penalty | up to 175% of tax owed |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with the Michigan Secretary of State (branch office or SOS2GO/Online Services) - counties can add small local fees.
02 - Step by step
How to gift a car in Michigan
- 1
Confirm your relationship is on Michigan's qualifying list (it's broader than most states - check in-laws and step-relations too).
- 2
Seller signs the title's assignment section over to the recipient, with the odometer reading recorded.
- 3
Fill out Form RD-108 together and check the family-relationship box instead of entering a sale price.
- 4
Bring the title, RD-108, proof of insurance, and ID to an SOS branch within 15 days of the transfer.
- 5
Pay only the $15 title fee - no 6% tax due if the relationship qualifies. Keep documentation in case Treasury asks later.
03 - Same state, other costs
More Michigan vehicle costs
04 - Common questions
Michigan gift a car FAQ
Who qualifies for Michigan's tax-free family transfer?
Spouse, parent, child, sibling, stepparent/stepchild, stepsibling, half-sibling, grandparent/grandchild, mother/father/son/daughter/brother/sister-in-law, grandparent-in-law, and a legal ward or appointed guardian. It's one of the broadest lists of any state - even in-laws and step-relations qualify.
Does the exemption only apply to true gifts, or also to paid sales between family?
Both. Michigan's exemption is based purely on the relationship, not on whether money changed hands - sell your car to your brother for full market value and it's still tax-exempt, as long as the relationship is documented if Treasury ever asks.
What if I give a car to my girlfriend or a close friend?
Not exempt - Michigan taxes it like any private sale, 6% of the purchase price or the vehicle's fair market value, whichever is higher, even if you write $0 or 'gift' on the title. Only the specific relationship list above qualifies.
Do I have to prove the relationship at the SOS counter?
No - you just check a box on Form RD-108. But the Department of Treasury can request supporting documents later, and if you can't back up the claim, penalties run up to 175% of the tax that should have been collected, with possible criminal referral for fraud.
Does a gifted car still need a title transfer within 15 days?
Yes - the 15-day deadline and the flat $15 late fee apply to family transfers exactly the same as any sale. Only the 6% tax is waived, not the paperwork timeline.
Is there a separate form for family gifts, like some states require?
No dedicated gift affidavit - Michigan handles it entirely through Form RD-108's relationship field, which is simpler than states that require a notarized gift affidavit filed separately.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.