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.
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Connecticut Gift Bill of Sale — What You Need to Know
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
- Complete the Motor Vehicle or Vessel Gift Declaration (AU-463) — the donor signs it.
- Sign the back of the existing Connecticut vehicle title over to the recipient, writing "Gift" or $0 in the purchase price / consideration field.
- 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.
- Schedule and pass a Connecticut emissions test at a DMV-authorized inspection station, unless the vehicle is 25 years old or older.
- Both donor and recipient bring valid Connecticut driver's licenses or government-issued photo ID.
- 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.
- 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.