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Gifting a Car in Michigan: What It Really Costs

Michigan runs one of the most generous family-transfer exemptions in the country: give (or even sell) a vehicle to a qualifying relative and the 6% sales tax disappears completely - you only pay the $15 title fee. The relationship list is long and specific: spouse, parent, child, sibling, step- and half-relations, grandparents and grandchildren, and a full roster of in-laws (including a grandparent-in-law), plus legal wards and guardians. There's no separate notarized gift affidavit to file - you just mark the relationship on Form RD-108 at the SOS counter.

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Your numbers

$

Official fees

Michigan gift a car fee chart

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 July 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.

Official Michigan forms you'll need

  • TR-11LApplication for Michigan Vehicle Title

    The use-tax exemption for gifts/immediate-family transfers is claimed during the title transfer at the SOS office (Treasury guidance 'Transferring a Vehicle Title to a Relative', pub. 248, is informational only).

Get the current version of each form from the Michigan Secretary of State (branch office or SOS2GO/Online Services) before you file - agencies revise forms, and offices reject outdated ones.

Step by step

How to gift a car in Michigan

  1. 1

    Confirm your relationship is on Michigan's qualifying list (it's broader than most states - check in-laws and step-relations too).

  2. 2

    Seller signs the title's assignment section over to the recipient, with the odometer reading recorded.

  3. 3

    Fill out Form RD-108 together and check the family-relationship box instead of entering a sale price.

  4. 4

    Bring the title, RD-108, proof of insurance, and ID to an SOS branch within 15 days of the transfer.

  5. 5

    Pay only the $15 title fee - no 6% tax due if the relationship qualifies. Keep documentation in case Treasury asks later.

Family transfer tax
0% - fully exempt
Title fee
$15
Paperwork
RD-108, relationship box checked
Qualifies
Broad - includes most in-laws
Friends/cousins/partners
Taxed on price or FMV

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.

Same state, other costs

More Michigan vehicle costs

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.

Receipts

Official sources

Every number on this page comes from these documents - check them yourself.

Everywhere else

Gifting a Car: Taxes & Fees by state

Fees and rules are different in every state. Pick yours for exact numbers.

each state hand-verified against its DMV before it goes live

Disclaimer

DMVCosts provides fee estimates for general informational purposes only - it is not legal, tax, or financial advice, and no calculator can account for every county surcharge, exemption, or mid-year rate change. Figures are verified against official sources on the date shown, but fees change over time.

The final, binding amount is always the one quoted by the Michigan Secretary of State (branch office or SOS2GO/Online Services). Confirm with them before making payment decisions. To the fullest extent permitted by law, DMVCosts disclaims all liability for decisions made based on these estimates.