Overview
The two traps: cars from tax-free states, and loans. A vehicle bought and registered in Oregon - no sales tax there - arrives in Washington with no tax history, so the 'gift' owes use tax on its fair market value. And if the recipient takes over any remaining loan payments, that assumed debt is consideration: the transfer stops being a gift and gets taxed. The paperwork itself is light - no notarized affidavit, just a signed gift statement on the bill of sale and the normal $39.50 title transfer within 15 days.
01 - Official fees
Washington gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Use tax - qualifying gift | $0.00 | giver paid WA sales/use tax; no consideration |
| Use tax - car from a no-tax state (e.g., Oregon) | ≈ 8.5%–11.05% of FMV | |
| Use tax - recipient assumes a loan | ≈ 8.5%–11.05% | assumed debt is consideration |
| Title application fee | $15.00 | |
| Office service fee + filing fee | $24.50 | $18 + $6.50 |
| Late transfer penalty | $50–$125 | gifts face the 15-day deadline too |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with the Washington DOL (county auditor and subagent licensing offices) - counties can add small local fees.
02 - Step by step
How to gift a car in Washington
- 1
Gather proof the giver paid Washington sales or use tax on the vehicle (the original registration or purchase records help) - or that they owned it 7+ years in a sales-tax state.
- 2
Write 'gift' as the price on the bill of sale and have the giver sign a statement that no money, goods, services, or loan assumption is involved. No notary needed.
- 3
Giver signs off the title; if a lienholder is still on it, release the loan first - an assumed loan turns the gift into a taxed sale.
- 4
Giver files a report of sale online within 5 business days, same as any transfer.
- 5
Recipient takes everything to a licensing office within 15 days and pays the $39.50 in title fees (plus tabs to register).
03 - Same state, other costs
More Washington vehicle costs
04 - Common questions
Washington gift a car FAQ
Can I gift a car to a friend tax-free in Washington?
Yes - Washington's exemption isn't limited to relatives. Any recipient qualifies as long as it's a true gift (nothing exchanged, no loan assumed) and the giver previously paid Washington sales or use tax on the vehicle, or owned it seven-plus years in a sales-tax state. That's broader than the family-only rules in states like Texas.
My dad is gifting me his car from Oregon. Why do I owe tax?
Because no sales tax was ever paid on it - Oregon doesn't have one. Washington's gift exemption hinges on the vehicle having a tax history, so a gifted Oregon car owes use tax on its fair market value at your local vehicle rate when you register it here. A $20,000 car registered in Spokane owes about $1,920.
What if I take over the remaining payments on the gifted car?
Then it isn't a gift in Washington's eyes. An assumed loan balance is consideration, and the state charges use tax on the transfer. If the giver pays off the loan first and hands over a lien-free title with nothing owed, the gift exemption is back on the table.
Do I need a notarized gift affidavit?
No. Washington asks for a gift statement from the donor - commonly written on the bill of sale with 'gift' in place of a price - plus whatever proof supports the exemption (the giver's tax payment or 7-year ownership). No notarization requirement, unlike states that demand a sworn affidavit form.
What does the recipient actually pay at the counter?
For a qualifying gift: $39.50 - the $15 title application, $18 service fee, and $6.50 filing fee - plus normal registration if they want tabs in the same visit (cheaper combined: $12.50 filing + $29 service instead of two separate transactions). The 15-day transfer deadline and its $50–$125 late penalty apply to gifts exactly as to sales.
Is a gifted car subject to the RTA tax?
The gift exemption only covers use tax. Once the car is registered to a Sound Transit district address, the recipient pays the 1.1% RTA excise on every annual renewal like any other owner - a gifted $45,000-MSRP car in its second year still generates a ~$470 RTA line in Seattle.
Can I 'sell' the car for $1 instead of gifting it?
That backfires in Washington. A $1 price is more than 20% below fair market value, so the use-tax valuation rule kicks in and taxes book value anyway - and you've now documented consideration, which forfeits any claim to the gift exemption. A properly documented true gift is strictly better.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.