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.
01 - Official fees
Minnesota gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| 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 June 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.
02 - Step by step
How to gift a car in Minnesota
- 1
Confirm the relationship qualifies for the MVST exemption (spouse, parent/child, grandparent/grandchild, sibling).
- 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
Sign the title over to the recipient and complete the Application to Title/Register a Vehicle noting the gift.
- 4
Bring both parties' ID, the signed title, and proof of insurance to a deputy registrar within 10 business days.
- 5
Pay the title fee, transfer tax, Public Safety Vehicle fee, technology surcharge, and filing fee - no MVST due for a qualifying family gift.
03 - Same state, other costs
More Minnesota vehicle costs
04 - 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.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.