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Gifting a Car in Rhode Island: What It Really Costs

Rhode Island's gift rule is more generous than most states': it isn't limited to family. If a car has already had Rhode Island sales or use tax paid on it - which almost any previously-registered used car has - giving it away owes no additional tax at all, whether the recipient is a spouse or a total stranger. The distinction that matters isn't who you're related to; it's whether the DMV can see proof the vehicle was taxed before.

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Your numbers

$

Official fees

Rhode Island gift a car fee chart

Sales tax, prior RI tax proven paid

$0

any relationship, with documentation

Title fee

$53.50

Sales tax, never-before-taxed vehicle

7%

anti-abuse rule, any relationship

Registration (if transferring plates)

$60+

by weight, 2-year cycle

Figures verified July 2026 against official sources (listed below). Always confirm the final amount with the RI Division of Motor Vehicles (DMV) - counties can add small local fees.

Official Rhode Island forms you'll need

  • SU 87-65Affidavit of Gift of Motor Vehicle

    SU 87-65 is a RI Division of Taxation sales/use-tax affidavit, required (with a notarized gift letter) for gifts from NON-immediate family; immediate-family gifts need only a signed gift letter.

  • TR-1Application for Registration and Title Certificate

    still required - a gifted vehicle transfers title the same way as a sale

Get the current version of each form from the RI Division of Motor Vehicles (DMV) before you file - agencies revise forms, and offices reject outdated ones.

Step by step

How to gift a car in Rhode Island

  1. 1

    Confirm the vehicle already had Rhode Island sales/use tax paid - a past registration or tax receipt is your proof.

  2. 2

    Giver signs the title over to the recipient, writing 'Gift' where a sale price would go.

  3. 3

    Immediate family: write a simple gift letter with both names/addresses, the relationship, and the VIN.

  4. 4

    Anyone else: complete the notarized Affidavit of Gift of Motor Vehicle (Form SU 87-65) with the same details plus proof of prior tax payment.

  5. 5

    Recipient brings the title, gift letter or affidavit, proof of prior tax, insurance, and ID to the DMV, and pays the $53.50 title fee.

Tax on an already-taxed gift
$0
Immediate family
Signed gift letter
Anyone else
Notarized Form SU 87-65
Title fee
$53.50
Brand-new vehicle gifted
Full 7% tax

Overview

Immediate family (spouse, parent or step-parent, child or step-child, sibling or step-sibling) just needs a simple signed gift letter with names, addresses, the relationship, and the vehicle's description and VIN. Give the same already-taxed car to a friend, cousin, or partner and it's still tax-free - you just need a notarized Affidavit of Gift of Motor Vehicle (Form SU 87-65) instead of the informal letter. The one thing that still gets taxed: a brand-new, never-before-taxed vehicle bought specifically to hand over as a gift owes the full 7%, no matter who receives it.

Same state, other costs

More Rhode Island vehicle costs

Common questions

Rhode Island gift a car FAQ

Do I have to be family to gift a car tax-free in Rhode Island?
No. Rhode Island's gift exemption turns on whether the vehicle's sales/use tax was already paid once, not on the relationship. Immediate family just files simpler paperwork (a signed gift letter); anyone else needs a notarized affidavit, but the tax outcome - zero - is the same.
Who counts as immediate family for the simpler gift letter?
Spouse, parent or step-parent, child or step-child, and sibling or step-sibling. Grandparents, grandchildren, in-laws, and unmarried partners fall into the 'anyone else' category - still tax-free, just with the notarized Form SU 87-65 instead of a plain letter.
What proof do I need that the tax was 'already paid'?
A receipt, a prior use-tax return, or the vehicle's registration history showing Rhode Island tax was collected at some earlier point. Any used car that's been through a normal RI sale or registration typically has this on file with the DMV.
Can someone buy a new car and gift it to avoid paying tax themselves?
No - that's specifically excluded. A vehicle that's never had Rhode Island tax paid on it (a new purchase, most commonly) owes the full 7% when it's registered, even if the paperwork calls it a gift and even between immediate family.
Does gifting a car skip the inspection requirement?
No. The recipient still needs a current, passing safety/emissions inspection (or the vehicle's existing sticker still needs to be valid) before the DMV will register it in their name.
Is there a Rhode Island gift tax like some states have for cars?
No flat 'gift tax' fee - Rhode Island's rule is a full exemption from the 7% sales tax when the prior-tax-paid condition is met, not a reduced flat rate like some states charge for family transfers.

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 the RI Division of Motor Vehicles (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.