Free Maryland Gift Bill of Sale
Gifting a vehicle in Maryland to an immediate family member may avoid the state's 6.5% excise tax — on a $30,000 vehicle that would be $1,950 — but confirm eligibility with the MVA first, and ask which gift certification it requires alongside the title application at an MVA branch.
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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? →
Maryland 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
Maryland Gift Sale — Step-by-Step Checklist
- Sign the back of the existing Maryland title over to the recipient with odometer disclosure
- Prepare a bill of sale showing $0 as the purchase price and stating the family relationship
- Complete the gift certification the MVA requires — ask the MVA which form applies and who must sign it
- Gather a lien release if the existing title lists a lienholder
- Visit a Maryland MVA branch promptly — the MVA may add a service fee after 30 days from delivery
- Submit the signed title, the gift certification, any bill of sale, and title application (Form VR-005)
- Pay title and registration fees, plus any excise tax the MVA determines is due
Common Pitfalls
- Submitting the title transfer without the gift certification the MVA requires — without it, the transfer may be taxed like a sale
- Listing any amount other than $0 on the bill of sale — if a dollar amount is shown, the MVA may use that figure to calculate excise tax
- Gifting to a relative without confirming eligibility — ask the MVA which family relationships, if any, qualify for an excise tax exemption
- Forgetting that Maryland eliminated emissions testing in 2020 — you do not need an emissions certificate for the title transfer, but some people still expect this step from past experience
- Missing the 30-day window — the MVA may assess an additional service fee when the title application arrives more than 30 days after delivery; the MVA also sends notices if registration lapses
Maryland Gift Bill of Sale — FAQs
What gift certification does Maryland require, and where do I get it?
Ask the Maryland MVA — at mva.maryland.gov or any MVA branch — for its current gift certification form, who must sign it, and whether it must be notarized, before you rely on a family gift exemption.
How much does Maryland's 6.5% excise tax cost, and how much can a family gift save?
Maryland's excise tax is 6.5% of the vehicle's value. On a $20,000 vehicle that is $1,300; on a $30,000 vehicle it is $1,950; on a $40,000 vehicle it is $2,600. A qualifying family gift may be exempt; confirm eligibility and paperwork with the MVA.
Does Maryland still require an emissions test to transfer a vehicle title?
No. Maryland eliminated its Vehicle Emissions Inspection Program (VEIP) in 2020. There is no emissions certificate required for a title transfer or registration renewal. This removes one step that used to complicate Maryland vehicle transfers.
What family members qualify for a Maryland gift exemption?
Confirm the qualifying relationships with the Maryland MVA before relying on an exemption from the 6.5% excise tax.
Can I complete a Maryland vehicle gift title transfer online?
Some Maryland MVA transactions are available online, but gift title transfers typically require submitting original documents (signed title, gift certification, any bill of sale) either in person at an MVA branch or by mail. Check the Maryland MVA website for the current options before your visit.