Tips For Gifting A Car To A Family Member In Maryland
Gifting a car in Maryland, but not sure about excise taxes or our state's laws? Use our "Gifting a Car in MD" checklist and step-by-step "Maryland Car Title Transfer" guidelines below. Reach out to DARCARS Volkswagen of Silver Spring for help with any title transfer paperwork, then count on our friendly staff to celebrate your generosity – including adding a bow or popping confetti!
How To Gift a Car in Maryland: Key Takeaways
Are you in the research phase of gifting a car in Maryland? Skim the key points below. Full details about gifting a car in Maryland can be obtained by calling the Maryland Motor Vehicle Administration at 410-768-7000.
- It's usually less expensive to gift a car to a family member in Maryland than it is to give it to a friend.
- Maryland-titled vehicles and out-of-state vehicles that were previously titled in Maryland can be gifted to family members without excise tax.
- Most other instances of gifting a vehicle in Maryland are subject to a 6% tax.
- You must submit all relevant paperwork. Find more information about these forms below.
Gifting a Car in Maryland? Follow This Checklist
Straight from the MVA requirements website, here's what to check off before gifting a car in Maryland.
You can also jump to the next section to explore trade-in or sell-your-car opportunities alongside our inventory of all-new Volkswagen SUVs and sedans for sale.
- Confirm Your Recipient Qualifies: You can avoid paying a 6% excise tax on your Maryland car title transfer when gifting a vehicle in Maryland if the recipient qualifies as family under state law with no form of compensation exchanged.
- Confirm Your Vehicle Qualifies: Your vehicle must satisfy state standards for a Maryland car title transfer. Any liens must be paid before gifting. In many cases, a safety inspection is required, which you can schedule at our Silver Spring, MD, dealership.
- Prepare Your Gift Application: Gifting a car in Maryland involves the following paperwork and the consent of both parties: Maryland Gift Certification, Bill of Sale, Odometer Disclosure Statement, and Gift Title Transfer.
- Surrender Your Ownership: Surrender your model's license plates; the gift recipient will apply for their own set. This rule doesn't apply to joint spouse ownership scenarios or between parents and children.
Count on DARCARS Volkswagen of Silver Spring for Gifting, Selling, or Trade-In Support in Maryland
If the steps of gifting a car in Maryland seem daunting or you simply change your mind, you've got a few other fantastic options. Our VW dealer near Washington, D.C., runs a seamless trade-in program that puts your car's existing value toward your next vehicle purchase.
You can also sell your car for cash at our dealer in Silver Spring, MD – we pay top dollar! Trading in or selling your model opens the door to our entire inventory of new Volkswagen vehicles for sale.
Prefer to stretch your value even further? Browse our pre-owned vehicles for sale – they might just be the perfect way to gift a vehicle to yourself.
Apply for Mayland Gift Certification
Frequently Asked Questions
Does a gifted car have to be inspected in Maryland?
If you want to gift a car in Maryland to someone other than a family member, your model must be inspected in-state and issued a Maryland Safety Inspection Certificate. For specific situations that do or do not warrant a Maryland vehicle inspection, visit the MVA website, call the MVA at 410-768-7000, or reach out to DARCARS Volkswagen of Silver Spring.
Do both parties need to be present for a title transfer in MD?
Yes, a Maryland car title transfer can only be completed when both the giver and the receiver are present to sign all relevant paperwork. You can choose to complete and sign any relevant forms at home, or you and your recipient can meet in person at an MVA full-service branch or a local MVA licensed tag and title service location.
What are the tax implications for gifting a car in Maryland?
If you gift a car to a family member in Maryland, you'll likely be exempt from paying any excise tax on your donated vehicle. However, if you decide to give your automobile to an unqualified family member or a friend, you'll be responsible for paying a 6% tax. We know tax situations can be difficult, so feel free to reach out to our dealership for guidance.
How can I gift a car in Maryland to a non-family member?
The steps to gift a car in Maryland to a non-family member are nearly identical to the steps you'd take when donating your vehicle to someone in your family. However, a non-family donation will require a vehicle inspection and a few additional forms to be submitted along with your Certificate of Title application. Contact our dealership near Washington, D.C., for car gifting assistance.
Featured Customer Review
Gilda Sateri
4/05/2023
Diako Akhundzadeh and the whole staff were an absolute pleasure to work with. Diako helped my son, who is 16, purchase his first car! He made the whole buying process an absolute joy! He was professional, sincere, knowledgeable, and witty! He made one 16-year-old an extremely happy young man. Highly recommend DARCARS Volkswagen… Best price and service! Will be back next year for my daughter!