Overview
Give the same car to a friend, cousin, or in-law and Tennessee treats it as an ordinary sale - usually taxed at $0 if you honestly report a $0 price, but the county clerk can substitute the vehicle's NADA book value if that reported price looks like it's dodging tax on what's really worth thousands more. The calculator below runs both scenarios.
01 - Official fees
Tennessee gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Sales tax (qualifying family transfer) | $0.00 | |
| Title fee | $14.00 | |
| Registration (if re-plating) | $26.50/yr | plus county wheel tax if any |
| Non-qualifying transfer | Normal 3-layer tax | on price, or NADA value if price ≤ 75% of it |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your county clerk (TN Dept. of Revenue) - counties can add small local fees.
02 - Step by step
How to gift a car in Tennessee
- 1
Confirm the relationship qualifies: spouse, parent/child, grandparent/grandchild, great-grandparent/great-grandchild, sibling, or spouse of any of those.
- 2
Sign the title over to the recipient, and both parties complete the Affidavit of Non-Dealer Transfer (Form RV-F1301201).
- 3
Bring the title, the affidavit, ID, and insurance proof to the county clerk's office.
- 4
Pay the $14 title fee and registration - no sales tax is assessed on a qualifying family transfer.
- 5
Keep a copy of the signed affidavit; it's your proof if the exemption is ever questioned later.
03 - Same state, other costs
More Tennessee vehicle costs
04 - Common questions
Tennessee gift a car FAQ
Who exactly qualifies for the Tennessee family gift tax exemption?
Spouses, parents and children (including step and adoptive relationships), grandparents and grandchildren, great-grandparents and great-grandchildren, siblings, and the spouse of any of those people. Aunts, uncles, cousins, and unmarried partners do not qualify - those transfers are taxed like any other sale.
Is Tennessee's gift exemption really $0, not a flat fee like some states?
Correct - Tennessee has no $10-style token gift tax. A qualifying family transfer with the signed affidavit owes no sales tax whatsoever, just the standard $14 title fee and registration if you're putting new plates on it.
What form do I need to gift a car in Tennessee?
The Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats (Form RV-F1301201), signed by both the giver and the recipient, filed with the county clerk at the time of title transfer. Without it, the clerk has no record that the transfer qualifies for the exemption.
Can I just sell my car to a friend for $1 instead of calling it a gift?
It doesn't get you anywhere - a nominal price to a non-relative is subject to the same 75%-of-NADA-value rule as any underpriced private sale. If the county clerk believes $1 is far below the car's real value, they can assess tax on the NADA figure instead.
Does the person receiving a gifted car in Tennessee owe any other tax?
No income tax - gifts aren't taxable income under either federal or Tennessee law, and Tennessee has no state gift or inheritance tax. The only county-level cost is the title fee and registration.
Can I gift a car that still has a loan on it?
Not until the lien is released. The lender holds the title until the loan is paid off; once released, you can complete the family-transfer affidavit and title process normally.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.