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Gifting a Car in Minnesota: What It Really Costs

Minnesota is generous with family car gifts: give a vehicle to a spouse, parent, child, grandparent, grandchild, or sibling and the 6.875% motor vehicle sales tax disappears completely - not reduced, not flat-rated, just $0. That makes Minnesota's gift rule cleaner than states that only knock the tax down to a flat fee. What's left to pay is the same paperwork stack every transfer carries: an $8.25 title fee, a $10 transfer tax, a $3.50 Public Safety Vehicle fee, a $2.25 technology surcharge, and a $12 filing fee - about $33.50 total.

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Your numbers

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Minnesota depreciates the vehicle's original base value each registration year, down to a $20 statutory minimum from year 10 on.

Official fees

Minnesota gift a car fee chart

Family gift MVST

$0.00

spouse/parent/child/grandparent/grandchild/sibling

Non-family gift MVST

6.875%

of fair market value

In-lieu tax (either case)

$10.00

10+ years old AND under $3,000

Title fee

$8.25

Transfer tax

$10.00

Public Safety Vehicle fee

$3.50

Technology surcharge

$2.25

Filing fee

$12.00

Figures verified July 2026 against official sources (listed below). Always confirm the final amount with your local deputy registrar office (MN Driver and Vehicle Services) - counties can add small local fees.

Official Minnesota forms you'll need

  • PS2000Application to Title and Register a Motor Vehicle

    A genuine gift is exempt from motor vehicle sales tax and is declared on the PS2000 title application. Current printed revision of the form carries the identifier PS2000A.

Get the current version of each form from your local deputy registrar office (MN Driver and Vehicle Services) before you file - agencies revise forms, and offices reject outdated ones.

Step by step

How to gift a car in Minnesota

  1. 1

    Confirm the relationship qualifies for the MVST exemption (spouse, parent/child, grandparent/grandchild, sibling).

  2. 2

    Make sure any lien is released - a financed car can't transfer as a gift until it's paid off or refinanced by the recipient.

  3. 3

    Sign the title over to the recipient and complete the Application to Title/Register a Vehicle noting the gift.

  4. 4

    Bring both parties' ID, the signed title, and proof of insurance to a deputy registrar within 10 business days.

  5. 5

    Pay the title fee, transfer tax, Public Safety Vehicle fee, technology surcharge, and filing fee - no MVST due for a qualifying family gift.

Qualifying family gift
$0 MVST
Non-family gift
6.875% of value
Qualifies
Spouse, parent/child, grandparent/grandchild, sibling
Paperwork total
≈$33.50
Old & cheap, any recipient
$10 in-lieu may apply

Overview

Give the same car to a boyfriend, cousin, or best friend and Minnesota doesn't recognize it as an exempt gift at all - the deputy registrar taxes it on the vehicle's fair market value, same as any $0 sale. One more wrinkle worth knowing: if the vehicle is genuinely old and cheap (10+ model years, under $3,000 in value), the $10 in-lieu tax can still apply even to a non-family gift, since that rate is based on the vehicle, not the relationship.

Same state, other costs

More Minnesota vehicle costs

Common questions

Minnesota gift a car FAQ

Is gifting a car really tax-free in Minnesota?
Yes, for qualifying family - spouse, parent/child (including step and adopted), grandparent/grandchild, or sibling. The 6.875% MVST simply doesn't apply; you're not even taxed on a reduced value.
What if I gift a car to my niece, cousin, or girlfriend?
Minnesota doesn't extend the exemption beyond the listed relationships, so the deputy registrar taxes the transfer at 6.875% of the vehicle's fair market value, exactly as if it had been sold for that amount.
Do I still owe any fees on a tax-free family gift?
Yes - the title fee ($8.25), transfer tax ($10), Public Safety Vehicle fee ($3.50), technology surcharge ($2.25), and filing fee ($12) apply to every transfer, gift or sale, family or not. Only the MVST line disappears.
Can an old, cheap gifted car still get the $10 rate instead of full tax?
Yes - if the vehicle is 10 model years or older and worth under $3,000, the $10 in-lieu tax can apply to a non-family gift transfer, since that rate is based on the vehicle's age and value, not who's receiving it.
Does the recipient need to prove the relationship?
The deputy registrar may ask for documentation establishing the family relationship and typically a completed gift declaration to apply the exemption - bring ID for both parties and be ready to state the relationship on the title application.
What about a car I'm gifting that still has a loan on it?
The lien has to be released before the title can transfer as a gift - either pay it off first or have the recipient take over the loan, which the lender treats as a refinance, not a gift.

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 your local deputy registrar office (MN Driver and Vehicle 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.