Overview
Give the same car to a girlfriend, cousin, or best friend and North Dakota doesn't see a qualifying gift - it's treated as a sale, and if you write down $0 or a token price, NDDOT can substitute a Kelley Blue Book or NADA value and tax that instead. There's no special gift affidavit like Texas's Form 14-317; the relationship is simply declared on the title application (Form SFN 2872) at your county branch office. The calculator below compares both scenarios.
01 - Official fees
North Dakota gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Excise tax - qualifying family gift | $0.00 | |
| Certificate of title | $5.00 | |
| Non-qualifying 'gift' (friend, cousin, in-law) | 5% of value | NDDOT may substitute KBB/NADA if underpriced |
| Divorce-related transfer | $0.00 | within 1 year of the decree |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your county's NDDOT motor vehicle branch office - counties can add small local fees.
02 - Step by step
How to gift a car in North Dakota
- 1
Confirm the relationship qualifies - spouse, parent/child, grandparent/grandchild, or sibling (or a former spouse within a year of divorce).
- 2
Giver signs the title over to the recipient; note the relationship on the transfer.
- 3
Recipient completes Form SFN 2872, indicating the exemption and relationship.
- 4
Bring the signed title and SFN 2872 to your county's NDDOT motor vehicle branch office within 30 days.
- 5
Pay only the $5 title fee - no excise tax is due on a qualifying gift.
03 - Same state, other costs
More North Dakota vehicle costs
04 - Common questions
North Dakota gift a car FAQ
Who qualifies for the excise tax exemption on a gifted car in North Dakota?
Spouses, parents and children (including step- and adoptive relationships), grandparents and grandchildren, and siblings. A transfer to a former spouse also qualifies if it happens within one year of the divorce decree. Aunts, uncles, cousins, in-laws, and unmarried partners do not qualify.
Is North Dakota's gift exemption better than a $10 flat gift tax like some states charge?
Yes - North Dakota charges nothing at all on a qualifying family gift, not a reduced flat rate. The only cost is the standard $5 title fee, the same as any other title transaction.
Can I just write '$1' as the sale price to a friend instead of calling it a gift?
It doesn't help. A token price to someone outside the exempt relationships is still a taxable transfer, and if the price looks far below the vehicle's real value, NDDOT can substitute a Kelley Blue Book or NADA figure and tax that instead.
Is there a special form for gifting a car in North Dakota?
No separate affidavit - the standard Application for Certificate of Title & Registration (Form SFN 2872) has a section to declare the exemption and the relationship between giver and recipient.
Does the recipient owe any other tax on a gifted vehicle?
No state income tax applies (gifts aren't income), and North Dakota has no separate state gift tax beyond the vehicle excise tax already being waived. Any federal gift-tax question is between the giver and the IRS, not the county branch office.
Can I gift a car that still has a loan on it?
Not until the lienholder releases it - the lender holds the title until the loan is paid off. Once the lien is released, the gift transfer proceeds normally with the exemption.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.