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.
01 - Official fees
Rhode Island gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| 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 June 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.
02 - Step by step
How to gift a car in Rhode Island
- 1
Confirm the vehicle already had Rhode Island sales/use tax paid - a past registration or tax receipt is your proof.
- 2
Giver signs the title over to the recipient, writing 'Gift' where a sale price would go.
- 3
Immediate family: write a simple gift letter with both names/addresses, the relationship, and the VIN.
- 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
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.
03 - Same state, other costs
More Rhode Island vehicle costs
04 - 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.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.