How to Gift a Car in Tennessee in 2026
Gifting a motor vehicle in Tennessee involves transferring ownership through the state's title and registration system. A gift transfer is one in which no monetary consideration is exchanged between the donor and the recipient. The donor completes an assignment of the title, and the recipient then applies for a new certificate of title through the recipient's local county clerk's office.
How Does Gifting a Car in Tennessee Work?
In Tennessee, gifting a motor vehicle follows the same title and registration procedures as all other transfers of ownership. Both the donor and the recipient must sign the Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats, which certifies that the vehicle is being transferred as a gift with no monetary consideration. The donor signs the back of the current title, transferring ownership to the recipient. The recipient then takes the signed title, the completed affidavit, and supporting documents to the local county clerk's office to apply for a new certificate of title in the recipient's name.
Tennessee Car Gifting Rules You Should Know
Title Status
Most motor vehicles in Tennessee require a certificate of title before they may be registered or operated. Certain older and lower-value vehicles may be exempt from title requirements. A vehicle that is over 30 model years old, regardless of value, or any vehicle valued at $3,000 or less, may be registered using a Certificate of Ownership instead of a full certificate of title. The recipient should confirm with the local county clerk whether the gifted vehicle must be titled or whether a Certificate of Ownership may be filed.
License Plates
Tennessee license plates belong to the owner, not the vehicle. When a vehicle is gifted, the donor must remove the license plates. The donor may transfer the plates to another vehicle the donor owns for a $1 fee, or return the plates to the county clerk's office. The recipient will obtain new registration and decals (or transfer-eligible plates, if provided by the donor) through the county clerk's office as part of the registration process.
Taxes and Fees
No sales tax is due on a true gift transfer when the vehicle is transferred from one individual to another without consideration. However, other fees apply when the recipient titles and registers the vehicle. The state title application fee is $14. The standard registration plate fee for a passenger vehicle is $26.50. County clerk's offices collect additional local fees, which vary by county. The recipient should contact the local county clerk's office to confirm the total cost, as both state and county fees apply.
Step-By-Step Process To Gift a Car in Tennessee
Step 1: Confirm the vehicle title status.
Most Tennessee vehicles require a certificate of title before they can be registered. Check the current title or contact the local county clerk's office to confirm whether the vehicle must be titled or whether it qualifies for a Certificate of Ownership.
Step 2: Verify no liens exist on the vehicle.
If there are any liens or encumbrances on the vehicle (such as a loan or security interest), all liens must be paid and released before the gift transfer can be completed. The lien holder will discharge the lien by removing their name from the title.
Step 3: Complete the Affidavit of Non-Dealer Transfers.
Both the donor and recipient must complete the Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats. The affidavit requires vehicle information (year, make, VIN), the full names and addresses of both parties, the date of transfer, and a statement that the transfer is a gift with no monetary consideration. Both the donor and recipient must sign the affidavit and swear to its accuracy under penalty of perjury.
Step 4: Complete the odometer disclosure statement.
For vehicles with a 2011 model year or newer, both the donor and recipient must sign the odometer disclosure statement. The statement must show the actual odometer reading at the time of transfer. Both parties' signatures certify the accuracy of the mileage.
Step 5: Obtain the donor's signature on the title.
The donor signs the assignment section on the back of the current title certificate. The signature must match exactly the name as it appears on the front of the title. The donor should print the recipient's name clearly on the title in the space provided for the new owner.
Step 6: Remove the license plates.
The donor must remove all license plates from the vehicle. The donor may transfer the plates to another vehicle the donor owns for a $1 fee at the county clerk's office or surrender the plates to the county clerk.
Step 7: Submit documents to the county clerk's office.
The recipient takes all completed documents (signed title, affidavit, odometer disclosure statement, and proof of identification and residency) to the local county clerk's office to apply for a new title and registration.
Step 8: Provide proof of liability insurance.
Before a new registration can be issued, the recipient must provide proof of liability insurance that meets Tennessee's minimum requirements. Tennessee law requires a minimum of $25,000 bodily injury per person, $50,000 bodily injury per accident, and $15,000 property damage liability coverage.
Step 9: Title and register the vehicle before operating it.
A Tennessee resident who acquires a vehicle must title and register the vehicle in the resident's name before operating the vehicle on any public road or highway. The application for title and registration should be completed as soon as possible after the gift transfer.
Documents Needed for Gifting a Car in Tennessee
- The current certificate of title, signed by the donor and properly assigned to the recipient
- Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats, signed by both the donor and recipient
- Odometer disclosure statement (required for 2011 model year and newer vehicles), signed by both the donor and recipient
- Proof of identification for the recipient (such as a driver's license)
- Proof of residency for the recipient (such as a utility bill or lease)
- Proof of liability insurance meeting Tennessee's minimum requirements
- Any lienholder release documents if there are outstanding liens on the vehicle
Applicable Fees and Taxes When Gifting a Car in Tennessee
| Item | Amount | Notes |
|---|---|---|
| State title application fee | $14 | Required for all title applications |
| Standard passenger vehicle registration plate fee | $26.50 | State fee; county fees vary by location |
| License plate transfer fee (optional) | $1 | Only if transferring plates to another vehicle |
| County clerk office fees | Varies | Differs by county; contact local county clerk for exact amount |
| Sales tax | $0 | Not due on true gift transfers from individual to individual |
No sales tax applies to a gift transfer as long as the transaction is documented as a true gift with no monetary consideration. The Affidavit of Non-Dealer Transfers of Motor Vehicles and Boats must clearly state that the transfer is a gift and that the total amount of consideration is $0. The recipient should contact the local county clerk's office to confirm all applicable county fees before submitting the application.
Contact Information
Tennessee Department of Revenue
500 Deaderick Street, Nashville, TN 37242
Phone: (888) 871-3171 (statewide toll-free) or (615) 741-3101 (Nashville-area and out-of-state)
Official Website: Tennessee Department of Revenue
