How To Transfer a Car Title to a Family Member in California in 2026

In California, the formal transfer of a motor vehicle title to a family member is administered by the California Department of Motor Vehicles (DMV), the state agency responsible for maintaining official records of vehicle ownership. The transaction may be structured as a gift (with no monetary exchange) or executed as a private sale at a mutually agreed purchase price, each carrying distinct use tax consequences under California law. Both the transferring owner and the recipient must comply with the department's documentation and filing requirements in order for the state's titling system to reflect the new owner of record.

What Does Transferring a Car Title to a Family Member in California Mean?

Transferring a car title to a family member in California means executing a legally recognized change of vehicle ownership through the official procedures established by the California DMV. The California Certificate of Title is the primary legal document identifying the owner of a motor vehicle. Until the DMV processes a completed title transfer application and issues a new certificate in the recipient's name, the original owner remains the registered owner of record in the department's system.

Unlike some states that route title applications through county offices or licensed agents, California processes title transfers directly through its statewide network of DMV field offices, as well as through its Virtual Office and mail-in submission channels. Applications are processed within the department's titling database, and a new California Certificate of Title is typically issued within approximately 30 days of a completed submission. Expedited processing is available through the department's Rush Title Processing service for an additional fee.

A title transfer executed as a gift carries separate tax treatment from one completed as a private sale. The applicable statute governing the use tax exemption for qualifying family transfers is California Revenue and Taxation Code § 6285, which specifies the family relationships eligible for the exemption and the conditions under which it applies.

Additionally, the transferring owner bears a statutory obligation under California Vehicle Code § 5900 to submit a Notice of Transfer and Release of Liability (NRL) to the DMV within five calendar days of any sale or transfer. This filing protects the seller from responsibility for parking violations, traffic citations, or civil liability incurred by the new owner after the transfer date.

Eligible Family Members for Title Transfers in California

California Revenue and Taxation Code § 6285 enumerates the specific familial relationships that qualify for a use tax exemption on vehicle transfers. The exemption applies when the person transferring the vehicle is not engaged in the business of selling that type of property and is one of the following in relation to the recipient:

• Spouse or registered domestic partner (as defined under California Family Code § 297.5)
• Parent (natural or legally adopted)
• Grandparent (natural or legally adopted lineage)
• Child (natural or legally adopted)
• Grandchild (natural or legally adopted lineage)
• Brother or sister, provided the transfer occurs when both parties are minors related by blood or adoption

To claim this use tax exemption, the new owner must submit a completed Statement of Facts (REG 256) form with the title application. The REG 256 must identify the specific family relationship between the buyer and seller. The exemption is not available if the transferring party is a dealer or is otherwise engaged in the business of selling vehicles.

It is important to note that stepparents and stepchildren are not explicitly listed in § 6285 and do not qualify for the statutory use tax exemption unless a legal adoption has established a parent-child relationship. Extended relatives such as aunts, uncles, cousins, and in-laws are likewise not covered by the exemption.

Regardless of the family relationship, the standard title transfer process applies to all parties. Any transaction recorded with a stated purchase price — even a nominal or below-market amount — is subject to California use tax on that stated amount, unless a qualifying exemption is documented.

How To Transfer a Car Title as a Gift to a Family Member in California

When a vehicle is transferred as a gift in California, the following process applies:

Step 1 — Confirm the title is free of liens and verify the title is on hand. Before proceeding, the current owner must confirm that no active lienholder is recorded on the certificate of title.

• If a lienholder is listed on Line 2 of the title, that party must provide a written lien release on the title itself or by submitting a Lien Satisfied/Legal Owner/Title Holder Release (REG 166) form.
• For vehicles that are two model years old or newer, the lienholder of record must request a replacement title directly from the DMV — a lien release on separate forms is not accepted for these vehicles.
• If the original certificate of title has been lost or destroyed, the current owner must obtain a replacement by submitting an Application for Replacement or Transfer of Title (REG 227) to the DMV before the transfer can proceed.

Step 2 — Complete the title endorsement on the face of the certificate. The transferring owner must endorse the California Certificate of Title to assign it to the recipient. The following fields must be completed on the title:

• The recipient's full legal name and California address
• The word "Gift" entered in the purchase price field
• The date of transfer
• The odometer mileage reading (required for vehicles under 20 model years old, per federal disclosure requirements)
• The transferring owner's signature(s), in ink, on Line 1 (each owner listed on the title must sign if the names are joined by "and" or by "JTRS"; one signature suffices if joined by "or")
• The driver's license or state ID number of the new registered owner

Step 3 — Complete a Statement of Facts (REG 256) to document the gift and claim the use tax exemption. For a gift transfer, the recipient must indicate the vehicle's estimated fair market value on a Statement of Facts (REG 256) form. This form also identifies the qualifying family relationship and serves as the documentary basis for the use tax exemption under Revenue and Taxation Code § 6285.

• Both the donor and the recipient should retain signed copies of the completed REG 256.
• The form must clearly identify the relationship of the buyer to the seller (e.g., "parent to child").

Step 4 — The donor submits a Notice of Transfer and Release of Liability. Within five calendar days of the transfer date, the transferring owner must file a Notice of Transfer and Release of Liability (NRL) with the DMV. The NRL may be submitted:

• Online through the DMV's NRL submission portal
• In person at a DMV field office

Step 5 — The recipient submits the title application to the DMV within 10 days. The family member receiving the vehicle must present the application package to a DMV field office or submit it through an authorized channel within 10 days of taking possession of the vehicle. The package must include:

• The endorsed California Certificate of Title
• The completed Statement of Facts (REG 256)
• Valid government-issued photo identification
• Applicable fees (title transfer fee, registration fees, smog transfer fee if applicable)
• A smog certification or evidence of exemption, if the vehicle is subject to smog requirements

Step 6 — Obtain new registration and license plates. Upon approval, the DMV will issue a new California Certificate of Title in the recipient's name. The recipient must also complete vehicle registration and obtain California license plates if new plates are required.

How To Transfer a Car Title as a Sale to a Family Member in California

When a family member purchases a vehicle at an agreed-upon price, the transfer is processed as a private-party sale. The procedure is as follows:

Step 1 — Agree on a purchase price and complete the title endorsement. The seller must fully endorse the California Certificate of Title by entering all required information:

• The buyer's full legal name and California mailing address
• The agreed purchase price
• The date of sale
• The odometer mileage reading (required for vehicles under 20 model years old)
• The seller's signature(s) in ink on Line 1, consistent with how ownership is held on the title
• The buyer's driver's license or state ID number

Step 2 — Prepare a Bill of Sale. A written bill of sale documents the terms of a private-party transaction. The Bill of Sale (REG 135) form is available through the DMV, or a separate written document may be used. The bill of sale must include:

• The vehicle's year, make, model, and Vehicle Identification Number (VIN)
• The full legal names and addresses of both buyer and seller
• The agreed sale price
• The date of sale
• The signatures of both parties

Note: The Vehicle/Vessel Transfer and Reassignment Form (REG 262) contains a Bill of Sale section (Section 2) and an Odometer Disclosure Statement (Section 3) and may be used in lieu of a separate bill of sale form and, where applicable, in lieu of recording odometer mileage directly on the title. All entries on the REG 262 must be completed in ink; pencil entries and photocopies are not acceptable.

Step 3 — Release any existing lien, if applicable. If a lienholder is listed on Line 2 of the certificate of title, the lien must be released prior to or concurrent with submission of the title application.

• The lienholder must execute a release on Line 2 of the title or provide a completed REG 166 form.
• For vehicles two model years old or newer, the recorded lienholder must request a replacement title from the DMV directly. A lien release on a separate form is not accepted for these vehicles per DMV policy.

Step 4 — The seller submits a Notice of Transfer and Release of Liability. Within five calendar days of the sale date, the seller must file an NRL with the DMV to document the transfer of ownership and release ongoing liability. The NRL may be submitted online at the DMV's NRL submission portal or in person.

Step 5 — The buyer submits the title application to the DMV within 10 days. The purchasing family member must present the complete application package to a DMV field office or submit it through an authorized channel within 10 days of taking possession of the vehicle. The transfer fee must be paid within 30 days of the transfer date to avoid a late penalty. At the time of submission, the DMV will collect:

• The title transfer fee
• California use tax on the purchase price (unless a qualifying exemption is documented via REG 256)
• Vehicle registration fees
• The smog transfer fee, if applicable
• A smog certification or evidence of smog exemption, if the vehicle is subject to smog requirements

Step 6 — Register the vehicle in the buyer's name. The buyer must complete vehicle registration, pay all applicable fees, and obtain California license plates in the new owner's name. Registration fees vary by vehicle type, declared value, and county of registration.

What Documents Are Needed To Transfer a Car Title to a Family Member in California

The documents required for a title transfer between family members in California are governed by the DMV's title transfer and changes policy and the Vehicle Industry Registration Procedures Manual.

Required for all transfers:

• California Certificate of Title — The existing title, properly endorsed for transfer on its face. The registered owner(s) must release interest on Line 1 with the required signatures, and the new registered owner's name, address, and driver's license or ID number must be entered. If the title is unavailable, an Application for Replacement or Transfer of Title (REG 227) must be submitted in its place.
• Statement of Facts (REG 256) — Required for gift and family transfers claiming a use tax exemption. The form must identify the buyer's family relationship to the seller and, for gift transactions, the vehicle's estimated fair market value.
• Valid Government-Issued Photo Identification — For the new registered owner(s) presenting the application.
• Odometer Disclosure — Required for vehicles under 20 model years old, consistent with federal odometer disclosure regulations administered by the National Highway Traffic Safety Administration (NHTSA), effective January 1, 2021. Disclosure may be recorded directly on a complying title or on a REG 262 form.
• Smog Certification or Evidence of Exemption — Required for most vehicles that are four or more model years old, unless a specific smog exemption applies. Applicants should verify current smog requirements with the DMV at the time of transfer.

Required for sale transfers only:

• Bill of Sale — Documenting the agreed purchase price, vehicle identification details, names and addresses of both parties, and the date of sale. The Bill of Sale (REG 135) form may be used, or the Bill of Sale section of the REG 262 serves the same purpose.
• Use Tax Payment or Exemption Documentation — For a taxable sale, use tax is collected by the DMV at the time of registration based on the stated purchase price. For a qualifying family transfer claiming the § 6285 exemption, a completed REG 256 documenting the family relationship is required in lieu of tax payment.

Additional documents that may be required:

• Lien Satisfied/Legal Owner/Title Holder Release (REG 166) — Required if a lienholder is recorded on the title and releases interest on a separate document rather than on Line 2 of the certificate of title. Not applicable to vehicles that are two model years old or newer (a replacement title from the lienholder is required in those cases).
• Application for Replacement or Transfer of Title (REG 227) — Submitted when the original California Certificate of Title is lost, destroyed, or otherwise unavailable. The legal owner/lienholder of record must complete this form for vehicles two model years old or newer.
• Vehicle/Vessel Transfer and Reassignment Form (REG 262) — Used for odometer disclosure when the title is noncomplying or unavailable, when there are multiple transfers, or when there is an error in the odometer disclosure section of the title. Also contains sections for Bill of Sale and Power of Attorney.
• Power of Attorney (REG 260) — Required when an authorized representative signs on behalf of an owner who cannot appear or execute documents in person.

Note: California does not require title assignments or supporting transfer documents to be notarized. Signatures on the certificate of title and on accompanying DMV forms must be completed in ink by hand; pencil entries and photocopies of the title are not accepted. Electronic signatures are not permitted on the physical certificate of title or on the REG 262 form.

How To Transfer a Car Title to a Family Member Online in California

A standard title transfer between family members — involving a complete change of registered ownership — cannot be finalized entirely online in California. The new registered owner must, at a minimum, accomplish the following through a DMV field office visit or a verified mail-in submission:

• Present or mail the original endorsed California Certificate of Title (or REG 227 if the title is unavailable)
• Provide the completed REG 256, REG 262, and any other required supporting documents in original ink-signed form
• Pay all applicable fees, including the title transfer fee, registration fees, smog transfer fee, and any use tax due
• Obtain California license plates and a registration card in the new owner's name

While the DMV Virtual Office allows documents to be uploaded and reviewed digitally, the physical certificate of title and certain original signed forms are required to complete the record update. Applicants submitting through the Virtual Office should anticipate follow-up communications from the DMV regarding any outstanding requirements.

What's the Cost To Transfer a Car Title to a Family Member in California?

All official fee schedules below are collected during the title transfer process.

Title Fees:

Registration Fees (vary by vehicle type and declared value, per the DMV Registration Fees schedule):

Transportation Improvement Fee (TIF) by Vehicle Market Value:

The DMV's online fee calculator provides a personalized estimate of total registration costs based on the specific vehicle, its declared value, and the county of registration.

Use Tax (for sale transfers only):

When a vehicle is transferred as a private party sale, California use tax applies to the full stated purchase price at the time of registration. The use tax rate equals the combined state and local sales tax rate in effect for the county where the vehicle is registered. The statewide base rate is 7.25%, with additional district taxes that vary by jurisdiction, bringing total rates in some counties above 10%. The statutory authority for this tax is found in California Revenue and Taxation Code § 6285 and the broader Use Tax provisions administered by the California Department of Tax and Fee Administration (CDTFA). Use tax is collected by the DMV at the time of registration; if registration is not completed concurrently, the purchaser must remit use tax directly to the CDTFA.

For gift transfers involving a qualifying family relationship under § 6285, no use tax is due at registration, provided a properly completed Statement of Facts (REG 256) documenting the relationship is submitted with the application. The exemption does not apply if the transferring party is in the business of selling vehicles, nor does it extend to family relationships not enumerated in the statute.

Contact Information

California Department of Motor Vehicles
2415 First Avenue, Sacramento, CA 95818
Phone: (800) 777-0133
Official Website: California Department of Motor Vehicles