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Gifting a Car in Nebraska: What It Really Costs

Most states that waive sales tax on a gifted car require you to prove a family relationship - spouse, parent, sibling. Nebraska doesn't. Its rule (Department of Revenue Reg-1-020) is simpler and stranger: a gifted or inherited vehicle is exempt from sales/use tax if the donor already paid Nebraska sales or use tax on it, full stop - it can be a parent, a friend, or a business associate. What disqualifies a 'gift' isn't the wrong relationship, it's a donor who never actually paid Nebraska tax on the car in the first place (say, they bought it out of state and never titled it here, or a business deducted it).

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Your numbers

$

The 5.5% state rate is constant statewide; cities layer their own local-option tax (0–2%) on top.

Official fees

Nebraska gift a car fee chart

Sales/use tax (qualifying gift/inheritance)

$0

donor previously paid Nebraska tax

Sales/use tax (non-qualifying transfer)

5.5%–7.5%

of fair market value, donor never paid NE tax

Title fee

$10.00

Lien fee (if applicable)

$7.00

Motor vehicle tax + fee

Unchanged

runs on the same MSRP/age schedule regardless of gift status

Figures verified July 2026 against official sources (listed below). Always confirm the final amount with your county treasurer (Nebraska DMV) - counties can add small local fees.

Official Nebraska forms you'll need

  • RV-707Application for Certificate of Title

    A gift's sales-tax exemption is claimed on the Nebraska Sales/Use Tax and Tire Fee Statement (Form 6) exemption certificate filed with the title application.

Get the current version of each form from your county treasurer (Nebraska DMV) before you file - agencies revise forms, and offices reject outdated ones.

Step by step

How to gift a car in Nebraska

  1. 1

    Confirm the donor previously paid Nebraska sales/use tax on the vehicle - a prior registration or tax receipt is your proof.

  2. 2

    Sign the title over with 'gift' noted where the price would go, and complete Form 6 claiming the exemption.

  3. 3

    Bring the title, Form 6, and ID to any county treasurer within 30 days.

  4. 4

    Pay the $10 title fee (plus $7 if a lien needs recording) - no sales tax if the exemption applies.

  5. 5

    The current year's motor vehicle tax and fee are still due as part of registering the vehicle in the new owner's name.

Exemption test
Donor already paid NE tax
Family required?
No
Title fee
$10
Filed on
Form 6
Motor vehicle tax
Still due as normal

Overview

If the exemption applies, the recipient owes no sales tax - just the $10 title fee, plus whatever motor vehicle tax and fee are due for the current registration year (gifting a car doesn't pause Nebraska's annual MSRP-bracket tax; it keeps accruing on the same schedule regardless of ownership). If the donor can't show prior Nebraska tax was paid, the transfer is treated as a sale at fair market value and taxed normally.

Same state, other costs

More Nebraska vehicle costs

Common questions

Nebraska gift a car FAQ

Does the recipient need to be family to avoid sales tax on a gifted car in Nebraska?
No. Nebraska's exemption (Reg-1-020) hinges entirely on whether the donor already paid Nebraska sales/use tax on the vehicle - it applies to gifts between friends, unmarried partners, or business associates just as much as family, as long as that condition is met.
What if I can't prove the donor paid tax before?
Then the county treats it as a sale for tax purposes and taxes it at the vehicle's fair market value using your local combined rate (5.5%–7.5%). A prior registration receipt, old title showing tax paid, or DMV record is usually enough to satisfy the exemption.
Does gifting a car mean I skip the annual motor vehicle tax too?
No - the motor vehicle tax and fee are tied to the vehicle itself and the registration year, not to how ownership changed hands. Whoever registers the gifted car still pays that year's tax based on its original MSRP bracket and age, same as any owner would.
Can a business gift a car to an employee tax-free?
Only if the business already paid Nebraska sales/use tax on that specific vehicle when it acquired it - many business vehicles are bought under resale or other exemptions, which would disqualify a later 'gift' from this exemption and trigger tax at fair value instead.
Is inheriting a car treated the same way?
Yes - Reg-1-020 covers both gifts and inheritance under the same rule: exempt if the deceased previously paid Nebraska tax on the vehicle. The estate or heir still pays the $10 title fee and any lien fee.
What form do I need to claim the exemption?
Form 6, the Sales/Use Tax and Tire Fee Statement, filed with the county treasurer - mark it as a gift/inheritance and attach or reference the donor's proof of prior Nebraska tax payment.

Receipts

Official sources

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

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 county treasurer (Nebraska DMV). 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.