How to Gift a Car in Minnesota in 2026

In Minnesota, gifting a motor vehicle corresponds to transferring vehicle ownership from one person to another without monetary consideration. The donor and recipient must execute an assignment of the vehicle's title and complete an application for a new certificate of title. The process ensures that the recipient obtains clear ownership and the vehicle is legally authorized for operation on Minnesota roadways.

How Does Gifting a Car in Minnesota Work?

In Minnesota, the title transfer for a gifted vehicle follows the same procedure as any other change of ownership. The transfer process begins when the donor executes an assignment and warranty of title under Minnesota Statutes. The donor must provide the original title document and all supporting ownership records to the recipient. Within 10 days of the transfer date, the donor completes and returns to the Department of Public Safety a form on the certificate entitled "Notice of Sale," or transmits this information electronically, including the recipient's name, address, and driver's license number.

The recipient then applies for a new certificate of title using the Application to Title/Register a Motor Vehicle (Form PS2000), which may be submitted at any deputy registrar office or by mail to the Minnesota Department of Public Safety. Upon receipt of the completed application, the state will issue a new certificate of title in the recipient's name. The recipient must submit this application within 20 calendar days after the title has been assigned. Once a new title is issued, the recipient may proceed with registration if the vehicle will be operated on public roadways.

Minnesota Car Gifting Rules You Should Know

Title Status

Minnesota law requires that most motor vehicles have a certificate of title. Certain classes of vehicles are exempt from title requirements, including implements of husbandry, special mobile equipment, trailers with a gross weight of 4,000 pounds or less (unless a security interest exists), snowmobiles, and electric-assisted bicycles. Manufacturers and licensed motor vehicle dealers holding vehicles for sale are not required to obtain a title for those vehicles.

When a vehicle transfer occurs, the donor must ensure that the name on the title application submitted by the recipient matches exactly the name shown on the current certificate of title. Any discrepancy in names or signatures may delay title processing. If the recipient intends to register the vehicle, the title application must include all required information from both parties, and the registration and title must be completed before the vehicle can be driven on Minnesota roadways.

License Plates

Upon transfer of ownership, the donor may remove any existing license plates from the vehicle. Minnesota law does not require that plates be transferred to the recipient. If the recipient wishes to retain and transfer existing plates to another vehicle owned or leased by the recipient, the donor and recipient may apply for a plate transfer at the deputy registrar's office. The deputy registrar will process a plate transfer request and may charge a fee for this service. In most cases, the recipient will apply for new plates when registering the newly titled vehicle.

Taxes and Fees

For gifts between spouses, parents and a child, or grandparents and a grandchild, the transfer is exempt from Minnesota's motor vehicle sales tax if the recipient completes and submits the Motor Vehicle Gift Affidavit (Form PS2080) at the time of the title and registration application. Submit the affidavit with the PS2000 application to claim the exemption. All other gifts are subject to the motor vehicle sales tax based on the fair market value of the vehicle at the time of the gift.

Step-By-Step Process To Gift a Car in Minnesota

Step 1: Confirm whether the vehicle requires a title.
Verify that the vehicle is subject to Minnesota's title requirement by checking the certificate of title. Most motor vehicles registered in Minnesota require a title. Certain categories, including implements of husbandry and trailers weighing less than 4,000 pounds (absent a lien), do not require titling.

Step 2: Complete the donor's assignment on the certificate of title.
The donor must sign the assignment section on the back of the certificate of title, exactly as the donor's name appears on the front. The donor enters the recipient's name, address, and driver's license number in the designated space. The transfer date must be recorded. All original title documents must be provided to the recipient immediately after signing.

Step 3: Report the sale by the donor.
Within 10 days of the date of sale, the donor must complete the "Notice of Sale" form (if printed on the certificate) and mail or deliver it to the Department of Public Safety or transmit the required information electronically, including the recipient's name, address, driver's license number, and the date of sale.

Step 4: Disclose the odometer reading if required.
For vehicles subject to odometer disclosure rules, the donor must certify the true cumulative mileage on the odometer reading in the space provided on the certificate or note if the actual mileage is unknown. This information must accompany the assignment and warranty of title.

Step 5: Complete the recipient's application for title and registration.
The recipient must complete the Application to Title/Register a Motor Vehicle (Form PS2000) in its entirety. Both the donor and recipient must sign the application. The recipient provides proof of liability insurance coverage if the vehicle will be operated on public roadways. The recipient submits the signed and completed application with the original certificate of title and all supporting documents to a deputy registrar's office or by mail within 20 calendar days of the title assignment.

Step 6: Submit payment for title, registration, and taxes.
The recipient pays the motor vehicle sales tax (unless exempt via Form PS2080), the $12 filing fee, the $1 surcharge, the $2.25 technology surcharge, and the annual registration tax at the time of the title and registration application. These payments may be made in cash, by check, or by credit or debit card at the deputy registrar's office or included with a mailed application.

Step 7: Obtain the new certificate of title.
The Department of Public Safety will process the application and issue a new certificate of title in the recipient's name. The recipient will receive the new title and registration card by mail or in person at the deputy registrar's office.

Step 8: Register the vehicle if it will be operated on public roadways.
If the recipient intends to drive the vehicle on Minnesota roads, the recipient must ensure that the vehicle is covered by liability insurance and that registration is completed before the vehicle is operated. Failure to register within the required timeframe may result in suspension of the vehicle's registration under state law.

Documents Needed for Gifting a Car in Minnesota

The following documents are typically required when gifting a motor vehicle in Minnesota:

• The original certificate of title, properly assigned by the donor to the recipient
• The completed Application to Title/Register a Motor Vehicle (Form PS2000), signed by both the donor and all recipients
• The Motor Vehicle Gift Affidavit (Form PS2080) if claiming exemption from sales tax for qualifying family transfers
• Proof of liability insurance for the recipient if the vehicle will be registered for road use
• The "Notice of Sale" form (if included on the certificate), completed by the donor within 10 days of transfer
• Odometer disclosure statement if required for the specific vehicle
• Any outstanding lien release documents if the vehicle has a secured interest
• A bill of sale or gift documentation stating that no monetary consideration was exchanged (recommended for record-keeping purposes)

If the vehicle is being transferred from out of state or is a non-Minnesota vehicle, supporting transfer documents or prior certificates of title from other jurisdictions may be required.

Applicable Fees and Taxes When Gifting a Car in Minnesota

The motor vehicle sales tax rate is 6.875% of the fair market value, effective July 1, 2023. The recipient pays this tax when applying for title and registration at a deputy registrar's office or when submitting the application by mail.

In addition to sales tax, the recipient must pay filing fees when registering and titling the vehicle. A $12 filing fee is imposed on vehicle title transfers. The deputy registrar may also assess a $1 surcharge on the filing fee. The state charges a technology surcharge of $2.25 when a vehicle is registered for use on public roadways.

The recipient must also pay the annual vehicle registration tax. For passenger automobiles, the registration tax is $10 plus 1.575% of the manufacturer's suggested retail price for vehicles initially registered in Minnesota on or after November 16, 2020. The registration tax is calculated as a percentage of the vehicle's base value, based on its model year and age. Older vehicles are taxed at lower percentages. For vehicles 11 years old or older, the registration tax is $20 annually.

Contact Information

Minnesota Department of Public Safety, Driver and Vehicle Services Division
445 Minnesota Street, Saint Paul, Minnesota 55101-5185
Phone: (651) 297-2126
Official Website: Minnesota Department of Public Safety, Driver and Vehicle Services Division