Free Maine Gift Bill of Sale
Gifting a vehicle to a family member in Maine may exempt the transfer from the state's 5.5% sales tax — on a $20,000 vehicle that would be $1,100 — but confirm eligibility with the BMV first. Write 'GIFT' as the purchase price on the bill of sale, have both donor and recipient sign it, and complete the title transfer at a Maine BMV office or by mail promptly. Ask the BMV which family relationships qualify.
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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? →
Maine 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
Maine Gift Sale — Step-by-Step Checklist
- Sign the back of the existing Maine title over to the recipient, completing the odometer disclosure section
- Prepare a bill of sale with 'GIFT' written as the purchase price — both donor and recipient must sign
- State the family relationship on the bill of sale (e.g., 'father gifting to daughter')
- Gather a lien release if a lender is named on the existing title
- Visit a Maine BMV branch or submit documents by mail promptly after the gift
- Submit the signed title and bill of sale along with the completed title application
- Pay title and registration fees, plus any sales tax the BMV determines is due
Common Pitfalls
- Writing a dollar amount instead of 'GIFT' — if the bill of sale shows any amount other than $0 or 'GIFT,' the BMV may assess 5.5% sales tax on that stated value
- Only having the donor sign the bill of sale — Maine expects both donor and recipient signatures on a gift bill of sale
- Letting the paperwork sit — Maine sets no fixed day count for a private transfer, but the vehicle must be registered before it is driven on a public way
- Gifting to a relative without confirming eligibility — check with the BMV which family relationships, if any, qualify for a sales tax exemption
- Not obtaining a lien release before transfer — if the vehicle is currently financed, the lender must provide a release letter before Maine BMV can issue a clean title to the recipient
Maine Gift Bill of Sale — FAQs
Can both donor and recipient sign the Maine bill of sale at different times?
Yes, as long as both signatures are present on the document when it is submitted to the BMV. The donor and recipient do not need to sign in person together, but both signatures are required. Ensure the date on the bill of sale reflects the actual gift date.
What family members are covered by Maine's vehicle gift sales tax exemption?
Confirm the covered relationships with the Maine BMV before relying on an exemption from the 5.5% sales tax, and state the relationship on the bill of sale either way.
Can I mail the title transfer documents to the Maine BMV instead of visiting in person?
Yes, Maine BMV accepts title transfer documents by mail. Send the signed title, signed bill of sale, completed title application, and applicable fees to the Maine BMV. Allow extra time for mail processing and submit promptly.
Does Maine require an emissions test for a vehicle gift transfer?
Maine does not have a statewide emissions testing program, so no emissions certificate is required for a gift title transfer. Maine does have a statewide safety inspection program, but a passing sticker is required for registration renewal, not specifically for the title transfer itself.