How to Gift a Car in California in 2026

Gifting a motor vehicle in California requires a transfer of vehicle title from the donor to the recipient. The recipient must complete the title transfer and register the vehicle within 10 days of acquiring the vehicle at the California Department of Motor Vehicles (DMV).

How Does Gifting a Car in California Work?

When a motor vehicle is gifted in California, the donor signs the back of the California Certificate of Title to assign ownership to the recipient. The recipient then completes a Statement of Facts (REG 256) form documenting that the vehicle was acquired as a gift and indicating the vehicle's estimated value. The recipient submits the signed title, completed Statement of Facts form, Application for Title or Registration/Verification of Vehicle (REG 343) or Application for Replacement or Transfer of Title (REG 227), and proof of liability insurance to the California Department of Motor Vehicles.

The California DMV processes the title transfer and issues a new California Certificate of Title in the recipient's name, along with registration and license plates. A Notice of Transfer and Release of Liability (NRL) protects the donor from liability after the transfer is reported to the DMV.

California Car Gifting Rules You Should Know

Title Status and Ownership Assignment

A California Certificate of Title is an official document that establishes legal ownership of a vehicle. When a vehicle is gifted, the donor must assign the title to the recipient by endorsing the back of the title with the recipient's name and signing the assignment section. The donor's signature must match exactly the name printed on the face of the title.

California titles are now issued electronically in most cases, though paper titles may still be in circulation for some vehicles. The assignment section on the back of the title clearly indicates where both the donor and recipient must sign. The word "gift" must be entered on the back of the title in the space designated for purchase price or consideration.

Multiple Owners and Signature Requirements

When a vehicle has multiple owners, California law determines signature requirements based on how the names are connected on the title and related documents. When co-owners are joined by "AND," each owner's signature is required to release the title. When co-owners are joined by "OR," either owner may sign alone to transfer the vehicle.

Both owners must sign the original title application when the vehicle is first registered or titled if connected by "AND." If the title shows no conjunction or a comma between names, all owners must sign the transfer documents.

Odometer Disclosure

Federal law requires an odometer mileage disclosure for vehicles being transferred. The donor must disclose the current odometer reading on the California Certificate of Title, and the recipient must acknowledge the disclosed mileage by signing the odometer section of the title.

The odometer reading must be reported on a Vehicle/Vessel Transfer and Reassignment Form (REG 262) if the title does not have space for both parties to sign the odometer disclosure section. The donor and recipient must both sign the odometer disclosure section, certifying the accuracy of the reported mileage. False statements on the odometer disclosure are subject to federal penalties.

License Plates and Registration Transfer

When a vehicle title transfers in California, the current registration and license plates must be handled according to their type. Standard license plates are not transferable to another vehicle. If the vehicle bears personalized or specialized plates, the donor may choose to keep those plates and transfer them to another vehicle the donor owns, or surrender them.

The recipient will receive new standard license plates upon completing the title transfer and registration process. License plates must display a current validation sticker showing the vehicle is properly registered.

Smog Inspection and Smog Transfer Fee

Smog inspections are required when registering most vehicles in California, unless the vehicle is exempt. Vehicles that are less than eight model years old do not need a smog inspection; instead, the recipient must pay a smog abatement fee with the registration application.

If a vehicle is gifted by a family member (spouse, domestic partner, sibling, child, parent, grandparent, or grandchild) who purchased it without first titling it in their own name, a smog inspection may be required. The recipient should verify the vehicle's smog status and whether an inspection or transfer fee is required before completing the registration.

Use Tax and Consideration

In California, gifts are transactions not subject to use tax provided the word "gift" is entered on the title and a Statement of Facts form is completed. No use tax is due on gift transfers because no valuable consideration is exchanged between the donor and recipient. However, the recipient remains responsible for paying registration fees, transfer fees, and any applicable county or district fees.

Insurance Requirements

Proof of liability insurance from a company authorized by the California Department of Insurance is required to register and maintain a vehicle in California. California requires minimum liability coverage of $30,000 for injury or death to one person, $60,000 for injury or death to multiple persons, and $15,000 for property damage.

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

Step 1: Complete the Title Assignment

The donor must sign the assignment section on the back of the California Certificate of Title or on an assignment form provided by the DMV. The signature must match exactly the name as it appears on the front of the title. If the vehicle is jointly owned, all owners connected by "AND" must sign; either owner connected by "OR" may sign alone.

Step 2: Enter "Gift" on the Title

The donor or recipient should write the word "GIFT" on the back of the title in the space designated for purchase price or consideration. This notation documents that no monetary exchange occurred and establishes that the use tax does not apply.

Step 3: Complete the Odometer Disclosure

The donor records the current odometer mileage on the back of the title or on a Vehicle/Vessel Transfer and Reassignment Form (REG 262). The recipient must acknowledge and sign the odometer disclosure section certifying the accuracy of the mileage. Do not estimate or guess at the odometer reading.

Step 4: Complete the Statement of Facts (REG 256) Form

The recipient completes the Statement of Facts form, indicating that the vehicle was acquired as a gift and providing its estimated current market value. This form documents the gift transfer and serves as evidence of the exemption from use tax.

Step 5: Obtain Smog Certification or Payment Documentation

If required for the vehicle and model year, the recipient must obtain a valid smog inspection certificate from an authorized smog station or documentation that a smog abatement fee will be paid with the registration application. Vehicles less than eight model years old are exempt from smog inspection requirements and instead require payment of the smog abatement fee.

Step 6: Gather Required Documents

The recipient collects the signed California Certificate of Title, completed Statement of Facts (REG 256) form, completed Application for Title or Registration (REG 343) or Application for Replacement or Transfer of Title (REG 227), Vehicle/Vessel Transfer and Reassignment Form (REG 262) if required for odometer disclosure, smog inspection certificate or documentation of smog abatement fee, proof of liability insurance, and payment for applicable transfer and registration fees.

Step 7: Submit Transfer Application to DMV

The recipient may submit the transfer application in person at any California DMV field office, by mail to the DMV, or online through the DMV website if eligible. The application must be submitted within 10 days of acquiring the vehicle to avoid late fees and penalties.

Step 8: Submit Notice of Transfer and Release of Liability

The donor should submit a Notice of Transfer and Release of Liability (NRL/Form REG 138) to the DMV within five days of transferring the vehicle. This protects the donor from liability for any traffic violations, parking citations, or accidents that occur after the transfer date.

Documents Needed for Gifting a Car in California

The documents required to complete a gift transfer of a motor vehicle in California include the following:

• California Certificate of Title with assignment section completed and signed by the donor (and all co-owners if connected by "AND")
• The word "GIFT" is written on the back of the title in the purchase price section
• Completed Statement of Facts (REG 256) form signed by the recipient, indicating the vehicle's estimated value
• Completed Application for Title or Registration (REG 343) or Application for Replacement or Transfer of Title (REG 227)
• Vehicle/Vessel Transfer and Reassignment Form (REG 262) if the title does not have adequate space for both parties to sign the odometer disclosure
• Current smog inspection certificate or documentation that the vehicle qualifies for smog abatement fee payment
• Proof of liability insurance from an authorized California insurance company
• Payment for the $15 transfer fee, applicable registration fees, and county or district fees

If the donor received the vehicle from a prior owner and has not yet transferred it into their name, the recipient must obtain the Notice of Transfer and Release of Liability form to complete the chain of title before transferring to the recipient.

Applicable Fees and Taxes When Gifting a Car in California

The $15.00 transfer fee is due when the title transfer is processed. Because the transfer is documented as a gift with no consideration exchanged, use tax does not apply.

The Vehicle License Fee (VLF) is calculated at 0.65% of the vehicle's estimated market value or assessed value at the time of registration. The recipient can use the DMV Fee Calculator to estimate the VLF and other registration fees based on the specific vehicle information.

Registration fees vary based on the vehicle type, weight, engine displacement, and the county or city where the vehicle will be registered. County and city fees are imposed by local jurisdictions and vary by location, but are in addition to state registration fees.

Vehicles less than 8 model years old are required to pay a smog abatement fee with the registration application instead of undergoing a smog inspection. This fee varies and is determined at the time of registration.

Contact Information

California Department of Motor Vehicles
4700 Broadway, Sacramento, California 95820
Phone: 1-800-777-0133 (Customer Service)
Official Website: California Department of Motor Vehicles