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

The Indiana Bureau of Motor Vehicles (BMV) administers all motor vehicle certificates of title in the state and is the sole agency responsible for issuing, recording, and transferring title records for vehicles registered in Indiana. Title transfer obligations are established under IC Title 9, Article 17, which governs certificates of title for Indiana vehicles. The recipient of a transferred vehicle must apply for a new certificate of title within 45 days of the date the vehicle was purchased or otherwise acquired. Sales tax on private-party vehicle transactions — including those between family members — is assessed and collected at the BMV branch at the time of the title application, unless a qualifying exemption applies.

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

A certificate of title in Indiana is the official legal document that establishes ownership of a motor vehicle. The registered owner recorded on the current title bears legal and financial responsibility for the vehicle until the BMV issues a new certificate of title in the new owner's name. A transfer between family members, whether a gift with no monetary exchange or a sale at an agreed-upon price, requires the prior owner to fully assign the existing title to the recipient and the recipient to apply for a new certificate of title at a BMV branch.

Indiana offers certificates of title in both paper and electronic formats. When a title is issued electronically, it is stored in the BMV's secure records system, and the registered owner is notified via email or postcard. An electronic title functions as the legal equivalent of a paper title; however, for transfers between family members, the electronic format does not eliminate the requirement to appear in person at a BMV branch.

All transfers among family members in Indiana are subject to the same core titling procedure. The primary distinction lies in the sales tax treatment: transfers involving no monetary consideration are exempt from the state’s gross retail and use tax, while transfers involving a stated purchase price are generally subject to the state's 7% sales tax rate — unless a specific statutory exemption applies.

Eligible Family Members for Title Transfers in Indiana

Indiana law establishes two distinct tax exemptions relevant to family-member vehicle transfers, each with its own eligibility conditions.

The first is the outright gift exemption, which applies to any vehicle transferred from one individual to another with no consideration involved — meaning no money, no property exchange, and no assumption of loan payments by the recipient (unless the recipient was already listed on the original security agreement). This exemption, designated as Exemption 7 on Form ST-108E, applies regardless of the relationship between the parties. A genuine gift to a sibling, a grandchild, or even an unrelated individual qualifies, as long as no consideration changes hands.

The second is the intrafamilial title transfer exemption established under IC 6-2.5-5-15.5, which exempts transactions that consist of changing the motor vehicle title to add or delete an individual who is a spouse, child, grandparent, parent, or sibling of an existing owner. This exemption, designated as Exemption 11 on Form ST-108E, applies to title changes within that defined family group. The following relationships qualify for the tax exemption:

• Spouses
• Parents and children (biological or legally adopted)
• Grandparents and grandchildren
• Siblings (including half-siblings)

Relationships not enumerated in IC 6-2.5-5-15.5 — including step-relations, in-laws, stepparents, stepchildren (unless legally adopted), aunts, uncles, nieces, nephews, and cousins — do not qualify for Exemption 11. A transfer to a relative outside this list with monetary consideration is subject to Indiana sales tax at the 7% rate.

For all transfers, the standard titling procedure applies: both parties must appear at a BMV branch, the prior owner must have fully completed the assignment on the face of the title, and any active lienholder must release or discharge the recorded lien before the title can be cleanly assigned.

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

When a vehicle is conveyed as a genuine gift in Indiana, the following steps apply:

Step 1 — Confirm the title record and resolve any lien. The transferor should verify that the current certificate of title accurately reflects their ownership and that no active lien is recorded. If a lienholder is listed, the lien must be released or fully satisfied before the title can be assigned to the recipient. If the loan was jointly held and the recipient was listed on the original security agreement, the assumption of remaining payments does not necessarily trigger taxability, but this circumstance requires documentation, and the BMV branch will advise accordingly.

Step 2 — Complete both the seller and purchaser sections on the title. All owners listed on the current title must print and sign their names in the seller section of the certificate of title before the vehicle is delivered. The seller section must also include the odometer reading at the time of transfer, the date of transfer, and — where a purchase price field exists — a notation of "Gift" or "$0." The purchaser section must be completed with the recipient's full legal name, address, and signature before visiting the BMV branch. Federal law requires that the odometer disclosure be completed for vehicles with a model year of 2011 or newer for the first 20 years of each transfer.

Step 3 — Remove the license plates before delivery. Indiana license plates remain the property of the registered owner and do not transfer with the vehicle. The transferor must remove the plates before delivering the vehicle to the recipient. The plates may be transferred to another vehicle owned by the same individual or surrendered to a BMV branch.

Step 4 — Recipient obtains a completed ST-108E exemption certificate. At the BMV branch, the recipient claims the outright gift exemption by completing Form ST-108E (Certificate of Gross Retail or Use Tax Exemption), selecting Exemption 7: "Transferred from one individual to another with no consideration involved or received as an outright gift or inheritance." Both the seller and purchaser information must be completed, and the recipient's Social Security Number, Indiana Taxpayer Identification Number, or Federal Employer Identification Number is mandatory on the form.

Step 5 — The recipient applies for the new certificate of title at a BMV branch. The recipient must present the assigned certificate of title, completed Form ST-108E, valid government-issued photo identification, and payment of applicable fees at any Indiana BMV branch. The BMV will process the title application and — if the recipient elects electronic title format — issue a notification of the new title electronically. If a paper title is preferred, it will be mailed to the registered address.

Step 6 — Register the vehicle and obtain license plates. If the vehicle is not already registered in the recipient's name, registration and license plates must be obtained at the BMV branch concurrently with the title application. Registration fees vary by vehicle type.

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

When a family member acquires a vehicle at an agreed purchase price, the transaction is treated as a private-party sale. Indiana sales tax at the rate of 7% applies to the purchase price and is collected at the BMV branch unless the transaction qualifies for a specific exemption.

Step 1 — All owners complete the title assignment. Every individual listed as an owner on the current certificate of title must print and sign their name in the seller section. The seller section must be fully completed with the buyer's name and address, the date of sale, the agreed purchase price, and the odometer reading. No fields in the seller or purchaser sections of the title should be left blank, as incomplete assignments are returned for correction.

Step 2 — Prepare a Bill of Sale. A written bill of sale documents the terms of the transaction and serves as supporting evidence of the purchase price reported to the BMV. A standard bill of sale should include the vehicle's year, make, model, and VIN; the full legal names and addresses of both the seller and the buyer; the agreed sale price; and the date of sale. State Form 44237 (Bill of Sale) is available from the Indiana Bureau of Motor Vehicles for use when a formal state form is desired; note that this form is only required as a primary ownership document in limited circumstances outlined on the BMV's bill of sale page.

Step 3 — Clear any existing lien. If an active lien is recorded on the current title, the lienholder must formally release the lien before or at the time of transfer. A lien release may appear as an endorsement on the face of the title itself or as a separate written release document from the lienholder. Titles with unresolved liens cannot be cleanly assigned to a new owner.

Step 4 — Seller removes license plates. As in a gift transfer, the seller must remove the Indiana license plates from the vehicle before delivery. Plates are not included in the sale and do not transfer to the buyer.

Step 5 — Buyer presents documents and addresses sales tax at a BMV branch. The buyer must appear in person at a BMV branch with the assigned title, bill of sale, photo identification, and payment for the applicable title and registration fees. Indiana sales tax of 7% on the purchase price is collected by the BMV at this step, unless the buyer presents a completed Form ST-108E demonstrating that an exemption applies:

• Exemption 7 (no consideration/gift): Only applicable when no purchase price was paid — not available for sale transactions with consideration.
• Exemption 11 (intrafamilial transfer per IC 6-2.5-5-15.5): Available when the transaction involves adding or removing a qualifying family member (spouse, child, grandparent, parent, or sibling) from the title. The Direct Relative Identification Statement on the front of Form ST-108E must be completed, identifying the names on the original title, the names being added or deleted, and the parties' relationship.

If neither exemption applies, the buyer pays 7% of the stated purchase price as Indiana sales tax at the time of title application.

Step 6 — Register the vehicle. The buyer must obtain Indiana registration and license plates at the BMV branch concurrent with the title application.

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

The following documents are required at the time of filing, per BMV title transfer guidance:

Required for all transfers:

• Current Indiana Certificate of Title — The existing title, with both the seller and purchaser sections fully completed and signed. All owners on the title must sign the seller section before delivery. Any incomplete or altered fields may cause the application to be returned.
• Application for Certificate of Title — The new owner's formal application for a title issued in their name. Obtained and completed at the BMV branch or through the BMV's online title-and-registration guide. Both parties must be present at the branch to complete the transaction.
• Odometer Disclosure Statement (State Form 43230) — Required for vehicles with a model year of 2011 or newer under applicable federal odometer disclosure rules. The odometer reading must be certified by the seller on the face of the title or on this separate form.
• Government-Issued Photo Identification — Required for both the transferor and the recipient at the BMV branch.
• Payment of Title Fee and Registration Fee — $15.00 title fee plus applicable registration fees, payable at the branch.

Required for sale transfers:

• Bill of Sale — Documents the agreed purchase price, vehicle description, VIN, names and addresses of both parties, and date of sale. Serves as supporting evidence of the taxable purchase price.
• Form ST-108 (Certificate of Gross Retail or Use Tax Paid) — Filed when Indiana sales tax is collected at the BMV branch on the purchase price.

Required for gift transfers and exempt transfers:

• Form ST-108E (Certificate of Gross Retail or Use Tax Exemption) — Filed when the transfer qualifies for Exemption 7 (no consideration/outright gift) or Exemption 11 (intrafamilial title change). The Direct Relative Identification Statement on Form ST-108E must be completed for Exemption 11. The recipient's Social Security Number or Taxpayer ID is mandatory.

Required in specific circumstances:

• Physical Inspection of a Vehicle or Watercraft (State Form 39530) — Required for any vehicle that was previously titled in another state or that is being titled in Indiana for the first time. May be performed at any BMV branch, a BMV-certified service provider, or by a law enforcement officer (fee up to $5.00).
• Affidavit for Certificate of Title Correction (State Form 55582) — Required when information entered on the certificate of title in error must be corrected before the transfer can be processed.
• Lien Release Documentation — Required when an active lienholder is recorded on the title. Must be a written release signed by the lienholder, or the lienholder's endorsement directly on the title.
• Power of Attorney — Required when a representative is signing or filing on behalf of an owner who cannot appear at the BMV branch in person.

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

Indiana's title transfer process, including between family members, requires both the transferor and the recipient to appear in person at a BMV branch. At that branch visit, the branch staff will verify the assigned title, collect all required documentation, process any applicable sales tax exemption claim, and submit the title application to the BMV for processing. No remote, mail-in, or digital-only path exists for private individuals to complete a full ownership transfer.

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

Indiana BMV collects the following fees](https://www.in.gov/bmv/files/Fee_Chart.pdf), upon title transfer application:

Title and Transfer Fees

Registration Fees (annual, collected at BMV branch concurrently with title application)

Electric and Hybrid Vehicle Supplemental Fees and the Transportation Infrastructure Improvement Fee may also apply at registration.

Contact Information

Indiana Bureau of Motor Vehicles
Indiana Government Center North, 100 N. Senate Avenue, Indianapolis, IN 46204
Phone: (888) 692-6841
Official Website: Indiana Bureau of Motor Vehicles — Titles