How to Gift a Car in Indiana in 2026
In Indiana, transferring ownership of a motor vehicle to another person without monetary compensation follows the same title-assignment and registration procedures as other vehicle ownership transfers. The donor completes the assignment section on the existing certificate of title, and the recipient applies for a new Indiana title through the Bureau of Motor Vehicles (BMV).
How Does Gifting a Car in Indiana Work?
When a vehicle is gifted in Indiana, the donor signs over the certificate of title to the recipient by completing the assignment section with the donor's signature and printed name matching the name shown on the front of the title. The recipient then submits an Application for Certificate of Title for a Vehicle along with the assigned title to a BMV branch or authorized service location.
A gift transfer does not involve a sale price, which means the transfer document or bill of sale should reflect that no monetary consideration was exchanged. Indiana residents must apply for a new certificate of title within 45 days after acquiring the vehicle. If an application is filed after the 45-day deadline, the BMV may assess an administrative penalty. Additionally, if the recipient intends to operate the vehicle on public roads, the vehicle must be registered with the BMV within the same 45-day window and must carry active liability insurance meeting Indiana's minimum coverage requirements.
Indiana Car Gifting Rules You Should Know
Title Status
Indiana requires owners to obtain a certificate of title for all vehicles owned by the individual, with narrow exceptions for certain vehicle categories. Vehicles exempt from titling requirements include off-road vehicles purchased before January 1, 2010, certain utility trailers, snowmobiles, and other specifically exempted vehicle types. When a vehicle is exempt from title requirements, a bill of sale may serve as evidence of ownership, though a physical inspection may still be required.
For vehicles that do require a title, the current owner must ensure the certificate of title is properly executed before transfer. If the certificate is lost or damaged, a duplicate title may be obtained through the BMV.
License Plates
When a vehicle is gifted, the donor should remove the license plates before transferring ownership. Indiana does not require license plates to be surrendered to the BMV; however, removal is the vehicle owner's responsibility. If the donor wishes to transfer the plate to another vehicle they own, a plate transfer fee of $16.35 applies. The recipient will receive a new registration document and license plate when the new registration is issued following the title transfer.
Taxes and Fees
A true gift of a motor vehicle is not treated as a taxable sale in Indiana; therefore, no sales tax is due on the transfer. However, the recipient becomes responsible for several administrative and tax obligations when registering the vehicle. These obligations include a title application fee of $9, a passenger vehicle registration fee of $21.35, and a Transportation Infrastructure Improvement Fee of $15, which applies to all motor vehicles upon first registration and at each renewal.
In addition to state-level fees, the recipient may be liable for vehicle excise tax, the amount of which depends on the vehicle class and model year. The recipient may also owe local taxes if the county or municipality in which the vehicle is registered has adopted a county vehicle excise tax or municipal vehicle excise tax by ordinance.
Step-By-Step Process To Gift a Car in Indiana
Step 1: Verify Ownership and Title Status
The donor must confirm that the vehicle requires a title in Indiana and must possess the current certificate of title. If the title is missing, the donor should apply for a duplicate title from the BMV before proceeding. The title should list the donor as the owner, and no liens should appear on the title, or any liens must be released prior to transfer.
Step 2: Complete the Title Assignment
The donor signs the title in the assignment (seller) section exactly as the donor's name appears on the certificate's front. If two or more owners are listed on the title and joined by "and," both owners must sign the title. If the owners are joined by "or," either owner may sign. The donor must also print their name and complete the date of sale, odometer reading, and any other required fields in the assignment section. The donor should not sign the purchaser (buyer) section of the title.
Step 3: Complete the Odometer Disclosure Statement
The donor must complete and sign the Odometer Disclosure Statement – State Form 43230. In accordance with federal and state law, the seller must disclose the current mileage to the purchaser in writing. The form requires the odometer reading, vehicle information, the transfer date, and the seller's and purchaser's signatures. The purchaser must also sign and print their name and provide their address on this form.
Step 4: Gather Supporting Documents
The recipient must compile the assigned title, the completed odometer disclosure statement, a bill of sale (if desired as supporting documentation), proof of Indiana liability insurance, and a completed Application for Certificate of Title for a Vehicle – State Form 205.
Step 5: Submit the Title Application
The recipient presents the application and supporting documents to any BMV branch location or submits them by mail to the Indiana Government Center North, Room 402, 100 North Senate Avenue, Indianapolis, IN 46204. The BMV will process the application within 21 calendar days and mail the new title to the recipient's address on file.
Step 6: Register the Vehicle
Within 45 days of acquisition, the recipient must register the vehicle with the BMV. The vehicle must have active liability insurance before it is registered. The recipient may register at any BMV Connect Kiosk, at any BMV branch, or through a full or partial service provider, or may contact the BMV for options on registering through myBMV.com for certain transaction types. The registration process will issue a license plate and certificate of registration. The recipient should affix the registration sticker and license plate to the vehicle before operating it on public roads.
Documents Needed for Gifting a Car in Indiana
| Document | Purpose | Notes |
|---|---|---|
| Current Certificate of Title | Proof of ownership and authority to transfer | Must be assigned by all owners listed on title |
| Odometer Disclosure Statement – State Form 43230 | Federal and state compliance for mileage | Required for all motor vehicle transfers |
| Application for Certificate of Title for a Vehicle – State Form 205 | Official title application | Must include applicant information, vehicle description, and preferred title format |
| Bill of Sale – State Form 44237 | Supporting ownership document | Optional but recommended; must show "gift" or $0 purchase price |
| Proof of Liability Insurance | Evidence of minimum coverage | Required before registration; minimum is 25/50/25 coverage |
| Government-Issued Photo ID | Recipient identification | Must match name entered on title application |
All documents must be completed in blue or black ink with legible, handwritten, or printed entries. The applicant must ensure that the names on the title application match those on government-issued identification documents. If the applicant's name differs from the name shown in supporting documents, documentation of a legal name change may be required.
Applicable Fees and Taxes When Gifting a Car in Indiana
| Transaction | Fee | Applies When | Reference |
|---|---|---|---|
| Certificate of Title (new issuance) | $9.00 | Gifted vehicle is registered in Indiana | BMV Fee Chart |
| Vehicle Registration (passenger motor vehicle) | $21.35 | Vehicle is registered for road use | BMV Fee Chart |
| Transportation Infrastructure Improvement Fee | $15.00 | Vehicle is first registered or renewed | Vehicle Registration Fees & Taxes |
| Vehicle Excise Tax | Varies by class and age | Vehicle is registered | Excise Tax Information |
| County Vehicle Excise Tax or Wheel Tax | Varies | County has adopted such tax by ordinance | Applies in some Indiana counties only |
| Municipal Vehicle Excise Tax | Flat rate (varies by municipality) | Municipality has adopted such tax by ordinance | Applies in some Indiana municipalities only |
| License Plate Transfer (if transferring existing plate) | $16.35 | Donor transfers plate to another owned vehicle | BMV Fee Chart |
The recipient should use the BMV Quick Quote Tool to estimate the total cost of registration and associated fees based on the specific vehicle information and registration location.
No sales tax applies to a true gift of a motor vehicle, as the transfer is not treated as a sale. However, if any consideration is exchanged in addition to or in place of the stated gift, the transaction must be reported to the BMV with the actual consideration amount, and sales tax may apply.
Contact Information
Indiana Bureau of Motor Vehicles
Indiana Government Center North, Room 402, 100 North Senate Avenue, Indianapolis, IN 46204
Phone: (888) 692-6841
Official Website: Bureau of Motor Vehicles
