Overview
That doesn't make the transfer free - you still owe the standard $60 title fee (more if there's a lien to clear first) and whatever registration is due. And 'gift' has to mean it: the MVC can question a $0 sale between parties where the paper trail looks like a disguised purchase dressed up to dodge tax. The calculator below shows the real cost of a documented gift versus what the same transfer would cost as a taxable sale.
01 - Official fees
New Jersey gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Sales tax on a documented gift | $0 | |
| Title fee (no lien) | $60 | |
| Title fee (one lien to clear) | $85 | |
| Registration (light vehicle) | $46.50–$59.00/yr | |
| If treated as a sale instead | 6.625% of price | plus the same title/registration fees |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with the New Jersey Motor Vehicle Commission (MVC) - counties can add small local fees.
02 - Step by step
How to gift a car in New Jersey
- 1
Confirm the vehicle is free of any lien, or pay it off first - a gift with an active loan needs the lender's release.
- 2
On the back of the title, write 'GIFT' where the sales price would normally go.
- 3
Both giver and recipient complete and sign the Vehicle Gift Affidavit (Form BA-62).
- 4
Recipient brings the title, BA-62, and proof of insurance to an MVC agency.
- 5
Pay the $60 title fee (no sales tax) plus registration for the recipient's vehicle weight class.
03 - Same state, other costs
More New Jersey vehicle costs
04 - Common questions
New Jersey gift a car FAQ
Does the recipient have to be family for a car gift to be tax-free in New Jersey?
No - that's the state's real quirk. New Jersey's gift exemption applies to any recipient once the title is marked 'GIFT' and Form BA-62 is completed, not just spouses or blood relatives the way many states restrict it. A gift to a friend or unmarried partner qualifies exactly the same as a gift to a child.
What stops people from calling every sale a 'gift' to dodge tax?
The MVC's Casual Sales section can flag transfers that look like disguised sales - a $0 'gift' timed suspiciously close to a loan payoff, or between parties with no clear relationship and a high-value vehicle, can draw a request for documentation. Genuine gifts sail through; ones structured purely to avoid tax risk denial and a tax bill.
Is Form BA-62 mandatory to skip the sales tax?
Yes. Without the completed affidavit and the title marked 'GIFT', the MVC defaults to treating the transfer as a taxable sale and assesses 6.625% use tax on whatever value it determines, even if no money actually changed hands.
What if there's still a loan on the car I want to gift?
The lien has to be released before you can gift it - either pay off the balance first, or the lender releases the lien as part of the transaction. Gifting a financed vehicle isn't possible until the lender no longer has a claim on the title.
Do I still pay a title fee on a gifted car?
Yes - the $60 (or $85/$110 if liens are involved) title fee applies regardless of whether money changed hands. Only the 6.625% sales tax is waived for a documented gift; the administrative fees are unaffected.
Does gifting a car trigger federal gift tax?
New Jersey has no state gift tax to worry about beyond the sales tax question. A very high-value vehicle could theoretically interact with the federal annual gift-tax exclusion for the giver, but that's an IRS filing matter, not something the MVC assesses.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.