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Free Connecticut Gift Bill of Sale

Connecticut exempts a vehicle received as a gift from its 6.35% sales and use tax — saving $1,270 on a $20,000 gift — as long as the donor signs a Motor Vehicle or Vessel Gift Declaration (AU-463) and receives nothing in return: no cash, property, service, or assumption of debt. Connecticut sets no fixed day count for the transfer, but the recipient cannot drive the vehicle on a highway until it is registered in their name, and most vehicles must pass a CT emissions test before registration is finalized.

Connecticut Requirements: Connecticut sets no fixed day count for a private buyer: the car cannot be driven or parked on a highway until it is registered in the buyer's name. 6.35% 6.35% (7.75% over $50,000).

Seller Information

Buyer Information

Gift Details

Sale Information

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Gifting a vehicle to a family member is a zero-dollar transfer, but the DMV still needs a bill of sale to process the title change. Our guide explains how the bill of sale and title work together and what recipients must show to claim the family-gift tax exemption. Read: Bill of Sale vs Title: What's the Difference? →

Connecticut Gift Bill of Sale — What You Need to Know

Primary Form
Motor Vehicle or Vessel Gift Declaration
Agency
Connecticut Department of Motor Vehicles
Primary ID Field
VIN
Sales Tax
0%
Title Required
Yes
The donor must sign the existing Connecticut title over to the recipient. Write "Gift" or $0 in the purchase price field on the title assignment. A Motor Vehicle or Vessel Gift Declaration (AU-463), signed by the donor, is required to claim the gift exemption from sales and use tax.
Inspection
Not required

Sales Tax Details

Connecticut does not charge sales and use tax on a vehicle received as a gift, provided a Motor Vehicle or Vessel Gift Declaration (AU-463) signed by the donor is provided and the donor receives no consideration (cash, property, service, assumption of debt, etc.). The donor may be subject to the Connecticut gift tax.

Exemption: Gifts are exempt from Connecticut sales and use tax with an AU-463 gift declaration signed by the donor; the donor can't receive any consideration

Inspection Requirements

Connecticut requires emissions testing for most vehicles at registration, but vehicles 25 years old or older are exempt. Emissions tests are conducted at CT DMV-authorized stations. The gift status does not waive the emissions requirement.

Registration

Registration for this vehicle type is handled by Connecticut DMV — not the same agency that handles cars in Connecticut. Plan for separate filings.

Connecticut Gift Sale — Step-by-Step Checklist

  1. Complete the Motor Vehicle or Vessel Gift Declaration (AU-463) — the donor signs it.
  2. Sign the back of the existing Connecticut vehicle title over to the recipient, writing "Gift" or $0 in the purchase price / consideration field.
  3. Prepare a bill of sale with the donor's and recipient's full legal names, vehicle year/make/model/VIN, the gift date, and $0 or "Gift" as the stated consideration.
  4. Schedule and pass a Connecticut emissions test at a DMV-authorized inspection station, unless the vehicle is 25 years old or older.
  5. Both donor and recipient bring valid Connecticut driver's licenses or government-issued photo ID.
  6. Submit the AU-463 gift declaration, the signed title, bill of sale, passing emissions certificate (if required), completed title application, and payment for the title fee to a CT DMV office.
  7. Register the vehicle before the recipient drives it — the donor's registration ends when ownership transfers.

Common Pitfalls

  • Forgetting the AU-463 gift declaration signed by the donor — the DMV requires it for the gift exemption from sales and use tax.
  • Writing a nominal price (e.g., $1) instead of $0 or "Gift" — a gift donor can't receive any consideration, and a private sale is taxed on the higher of the NADA average trade-in value or the bill of sale value.
  • Missing the emissions test — most Connecticut vehicles must pass an emissions test before registration can be completed regardless of how the vehicle was acquired.
  • Mixing up the gift and family exemptions — a true gift needs the donor-signed AU-463; the separate immediate-family exemption covers spouses (including civil union partners), parents and children, and siblings, and requires the vehicle to have been registered in the family member's name for at least 60 days.
  • Putting off the transfer — until the recipient registers and titles the vehicle, it cannot be driven on a highway and the title still shows the donor.

Pro Tip

The donor-signed AU-463 gift declaration is what separates a tax-free Connecticut gift from an unexpected $1,000+ tax bill — never arrive at the CT DMV without it.

Connecticut Gift Bill of Sale — FAQs

What is Connecticut form AU-463 and why is it required?
AU-463 is the Motor Vehicle or Vessel Gift Declaration. The CT DMV requires it, signed by the donor, for a vehicle received as a gift to be exempt from sales and use tax. The donor can't receive any consideration — cash, property, service, or assumption of debt — in return.
Does the Connecticut gift exemption only apply to family members?
No. Under the DMV's rules, a vehicle received as a gift is exempt from sales and use tax with a donor-signed AU-463 declaration, as long as the donor receives no consideration. Separately, a sale or transfer between immediate family members — spouse or civil union partner, parent and child, or siblings (including through adoption) — is exempt if the vehicle was registered in the family member's name for at least 60 days and was taxed on its last sale.
Is my vehicle exempt from Connecticut emissions testing if I received it as a gift?
No. The gift status does not exempt a vehicle from Connecticut's emissions testing requirement. Vehicles 25 model years old or older are exempt regardless of transfer type. All other vehicles subject to CT emissions must pass an emissions test at a DMV-authorized station before registration.
What is the Connecticut vehicle title transfer fee for a gift?
Connecticut charges a title fee of approximately $25 for a standard title transfer, plus registration fees. No sales tax is due on a qualifying gift with a donor-signed AU-463 declaration.
Can I complete a Connecticut vehicle gift title transfer by mail?
Connecticut generally requires in-person title transfer for most transactions at a CT DMV office. Contact the CT DMV or check the portal.ct.gov/DMV website to confirm current procedures before planning a mail-in transfer.