Overview
The list is narrower than it looks at first glance, though: grandparents, cousins, in-laws, and unmarried partners are not on it. Give a car to any of them with genuinely no money changing hands and the county treasurer still values and taxes it at 4% - unless the vehicle happens to be 11 or more model years old and worth $2,500 or less, in which case South Dakota's separate old-and-cheap exemption wipes out the tax regardless of who's receiving it. Both exemptions require the transfer to be substantiated on Form MV-608 and, for the older-vehicle rule, a bill of sale showing the price.
01 - Official fees
South Dakota gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Title fee | $10.00 | |
| Technology fee | $2.00 | |
| Excise tax - eligible family, no money exchanged | Exempt | |
| Excise tax - 11+ model years old, value ≤ $2,500 | Exempt | regardless of relationship |
| Excise tax - inherited vehicle | Exempt | |
| Excise tax - gift outside eligible list | 4% of value | grandparents, cousins, friends |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your county treasurer's office (SD Dept. of Revenue) - counties can add small local fees.
02 - Step by step
How to gift a car in South Dakota
- 1
Confirm the relationship qualifies: spouse, parent/child, or sibling, with no money or trade changing hands.
- 2
Sign the title over to the recipient, writing 'gift' where a sale price would normally go.
- 3
Complete Form MV-608 together; note that no consideration was exchanged.
- 4
Recipient brings the title, MV-608, and proof of insurance to the county treasurer within 45 days.
- 5
Pay the $10 title fee and $2 technology fee - no excise tax is due if the relationship qualifies.
03 - Same state, other costs
More South Dakota vehicle costs
04 - Common questions
South Dakota gift a car FAQ
Who qualifies for a tax-free gift transfer in South Dakota?
Spouses, parents and children, and siblings - as long as no money or other consideration is exchanged. Grandparents, grandchildren, aunts, uncles, cousins, in-laws, and unmarried partners are not on the exemption list and get taxed at 4% like any other transfer.
Can I get around the exemption list by gifting to a grandchild?
Not through the family exemption - South Dakota's list specifically names spouse, parent-child, and sibling, and grandparent-grandchild isn't included. Your one alternative: if the vehicle is 11 or more model years old and worth $2,500 or less, it's exempt from excise tax regardless of who receives it.
How does the county treasurer know I didn't actually pay for the car?
Form MV-608 asks directly whether consideration was exchanged, and the county can request documentation. Misrepresenting a sale as a gift to dodge the 4% tax is tax fraud, not a paperwork shortcut.
Does the recipient owe any other tax on a gifted car?
No income tax - gifts aren't income, and South Dakota has no state income tax at all. There's no separate state gift tax either; the only levy in play is the vehicle excise tax, and qualifying transfers are exempt from that.
What if the gifted car still has a loan on it?
The lender holds the title until the lien is released, so the gift can't be titled to the recipient until that's cleared - either by paying it off or having the recipient qualify for their own financing, which turns it into a sale rather than a gift.
Does an even trade between family members work differently than a gift?
It's a separate exemption. Trading two vehicles of equal value (or trading down) is tax-exempt under South Dakota's even-trade rule regardless of relationship, as long as a bill of sale documents both vehicles' values - you don't need to be family for that one.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.