Overview
The paperwork matters. The recipient files the Certification of Tax Exemption (Form VT-014) along with the standard Registration, Tax & Title Application (VD-119), and no money, property, or assumed loan can change hands - the DMV specifically denies the exemption if a lienholder is listed on the transfer. You'll still pay the standard $42 title fee and registration if you're putting new plates on it.
01 - Official fees
Vermont gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Purchase & Use Tax (qualifying family gift) | $0.00 | |
| Certificate of title | $42.00 | |
| Registration (if transferring plates) | $91.00/yr | or $167 for 2 years |
| Non-qualifying 'gift' | 6% of price or book value | friends, cousins, unmarried partners |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with the Vermont DMV - counties can add small local fees.
02 - Step by step
How to gift a car in Vermont
- 1
Confirm the relationship qualifies: spouse, parent, child, sibling, grandparent, or grandchild.
- 2
Giver signs the title over to the recipient, with no price or a clear 'gift' notation.
- 3
Recipient completes Form VT-014 (Certification of Tax Exemption) and the standard VD-119 application.
- 4
Bring the signed title, VT-014, VD-119, and ID to a Vermont DMV office.
- 5
Pay only the $42 title fee (plus registration if new plates are needed) - no Purchase & Use Tax is due.
03 - Same state, other costs
More Vermont vehicle costs
04 - Common questions
Vermont gift a car FAQ
Who counts as eligible family for a tax-free gift in Vermont?
Spouse, parent, child, sibling, grandparent, and grandchild, under 32 V.S.A. § 8911(8) - including transfers to a trust for the benefit of one of those relatives, and transfers following the donor's death to a qualifying heir. Aunts, uncles, cousins, in-laws, and unmarried partners do not qualify.
Does gifting a car to my sibling really cost nothing in Vermont?
No Purchase & Use Tax, correct - but you still pay the standard $42 title fee, and registration if the recipient needs new plates or is renewing. The tax exemption only removes the 6% tax, not the DMV's other standard fees.
Can I gift a car that still has a loan on it?
Not as a tax-exempt gift - Vermont explicitly denies the gift exemption if a lienholder is listed on the application. Pay off the loan and get the lien released first, or the transfer will be taxed as a sale.
What if I just sell the car to my kid for $1 instead of filing the gift paperwork?
It doesn't help - Vermont taxes 6% of whichever is greater, your stated $1 price or the vehicle's J.D. Power book value, so a token sale gets fully taxed on book value. Filing Form VT-014 as an actual gift is the only route to $0 tax between qualifying relatives.
Is Form VT-014 mandatory even between parent and child?
Yes. Without it filed alongside the title application, the DMV has no record that the transfer was a gift and will assess standard Purchase & Use Tax on the transaction, even for an obviously eligible relationship.
Do gifted vehicles still need a Vermont title?
Yes, under the same rules as any other transfer - Act 165 requires a Vermont title on any ownership change regardless of the vehicle's age, gift or otherwise, unless it falls under the narrow grandfathered 15-year exemption.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.