Free Kentucky Gift Bill of Sale
Kentucky gives you only 15 days to transfer the title, so act quickly after gifting a vehicle. Some family gifts may be exempt from Kentucky's 6% Motor Vehicle Usage Tax — on a $25,000 vehicle the tax is $1,500 — but confirm which relationships qualify and what documentation is required with the County Clerk. The title transfer and any exemption are processed at the County Clerk's office.
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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? →
Kentucky Gift Bill of Sale — What You Need to Know
Primary Form
Standard bill of sale
Primary ID Field
VIN
Sales Tax
0%
Title Required
Yes
Inspection
Not required
Kentucky Gift Sale — Step-by-Step Checklist
- Sign the back of the existing Kentucky title over to the recipient in front of a notary, completing the odometer disclosure
- Prepare a bill of sale listing $0 as consideration and clearly stating the family relationship (e.g., 'parent gifting to child')
- Gather any lien release if a lienholder is named on the existing title
- Visit the County Clerk's office in the recipient's county within 15 days of the gift
- Present the notarized title, proof of Kentucky insurance, ID, and any documentation of the family relationship the clerk asks for
- Ask the County Clerk whether the gift qualifies for a usage tax exemption and how the relationship must be documented
- Pay title and registration fees, plus any usage tax the clerk determines is due
Common Pitfalls
- Missing the 15-day deadline — Kentucky's transfer window is short; a late transfer incurs penalty fees and the recipient may face registration issues
- Confusing the County Clerk with the DMV — Kentucky title transfers are handled by the County Clerk, not a Transportation Cabinet DMV office; go to the clerk in the recipient's county
- Not asking about documentation — if a family exemption applies, the County Clerk will need the relationship documented; otherwise the 6% usage tax applies
- Assuming any relative qualifies — confirm with the County Clerk which family relationships, if any, are exempt before relying on it
- Unresolved liens on the title — a lien release from the lender is required before the County Clerk can issue a clean title to the recipient
Kentucky Gift Bill of Sale — FAQs
Why does Kentucky only give 15 days to transfer a gifted car title?
Kentucky's 15-day transfer requirement applies to all vehicle title transfers, not just gifts. If you cannot visit the County Clerk within 15 days, contact the clerk's office — penalties apply, but the transfer can still be completed late with fees.
What is the Kentucky Motor Vehicle Usage Tax, and how much would I save by documenting a family gift?
Kentucky levies a 6% Motor Vehicle Usage Tax on vehicle transfers. On a $25,000 vehicle, that is $1,500. On a $30,000 vehicle, it is $1,800. Some family gifts may be exempt; confirm with the County Clerk whether yours qualifies and what documentation it needs.
Where do I transfer a vehicle title in Kentucky?
Kentucky vehicle title transfers are handled at the County Clerk's office, not a state DMV. Go to the clerk in the county where the recipient lives and will register the vehicle. Bring the signed, notarized title, proof of Kentucky insurance, ID, and any documentation of the family relationship the clerk requires.
Do I need to get a new title before gifting a car I recently bought?
Yes. If you recently purchased the vehicle and the title is not yet in your name, you need to complete the title transfer into your name first before you can sign it over as a gift. Kentucky requires the title to reflect the correct owner before any subsequent transfer.