Overview
There's a second catch buried in the exemption: if the gift comes with an assumed loan balance, that assumed debt is treated as taxable consideration - 4.15% is owed on it - unless the gift is between spouses, where the exemption holds even with an assumed loan. Give the same car to a non-qualifying relative or a friend and Virginia treats it like a private sale with a $0 price, which almost always triggers the NADA trade-in value as the tax base instead.
01 - Official fees
Virginia gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Title fee (always due) | $15.00 | |
| SUT - spouse/child/parent gift, no assumed loan | $0.00 | Form SUT-3 |
| SUT - spouse gift with assumed loan | $0.00 | still exempt |
| SUT - child/parent gift with assumed loan | 4.15% of assumed balance | |
| Non-qualifying 'gift' (sibling, friend, in-law) | 4.15% of NADA value | min $75 |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with the Virginia DMV (your county or city Commissioner of the Revenue collects the annual car tax) - counties can add small local fees.
02 - Step by step
How to gift a car in Virginia
- 1
Confirm the recipient is your spouse, biological/adopted child, or biological/adopted parent - the only relationships that qualify.
- 2
Sign the title over to the recipient, noting it's a gift and the vehicle's value for the record.
- 3
Both parties complete and sign Form SUT-3 (Purchaser's Statement of Tax Exemption), notarized.
- 4
Recipient files the title, SUT-3, Form VSA 17A, and proof of insurance at a DMV location within 30 days.
- 5
Pay the $15 title fee. If a loan is being assumed and it's not a spousal gift, SUT applies to that assumed balance.
03 - Same state, other costs
More Virginia vehicle costs
04 - Common questions
Virginia gift a car FAQ
Who actually qualifies for Virginia's car-gift tax exemption?
Only your spouse, your child (son or daughter, biological or adopted), or your parent (biological or adoptive). Step-parents, step-children, siblings, grandparents, grandchildren, and any non-relative are excluded - the exemption is narrower than in many states.
Can I gift a car to my sibling or a friend tax-free?
No. Virginia treats it as a private sale with no stated price, which almost always falls more than $1,500 below the NADA trade-in value - so SUT gets assessed on the full NADA value at 4.15%, same as a below-market private sale to a stranger.
What if the car I'm gifting still has a loan on it?
If your child or parent assumes the remaining loan balance, that assumed amount is taxable at 4.15% - the gift exemption doesn't cover debt the recipient takes on. The one exception is spouse-to-spouse gifts, where the exemption applies even if a loan is assumed.
Is Form SUT-3 mandatory even for a clear-cut parent-to-child gift?
Yes. Without a notarized SUT-3 on file, the DMV has no record that the transfer qualifies as an exempt gift and will assess standard SUT based on price or NADA value, same as any other transfer.
Does the recipient still pay the $15 title fee on a gifted car?
Always. The title fee applies to every titling in Virginia regardless of how ownership changed hands - gift, inheritance, purchase, or otherwise. Only the SUT itself can be exempted.
Does gifting reset the 30-day titling deadline?
Yes - the recipient has 30 days from the date of the gift to title the vehicle, exactly like a purchase, and the same $15 late fee applies if they miss it.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.