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Free Michigan Gift Bill of Sale

Transferring a vehicle as a gift to an immediate family member in Michigan eliminates the standard 6% use tax — a saving that can easily top $1,000 on a typical used car. The key document is Michigan Form TR-12L (Gift Affidavit), which must be completed and presented at any Secretary of State branch alongside the signed title and a bill of sale showing $0. The title must be transferred within 15 days of the gift.

Michigan Requirements: Transfer title within 15 days. 6% sales tax.

Seller Information

Buyer Information

Gift Details

Sale Information

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Michigan Gift Bill of Sale — What You Need to Know

Primary Form
TR-12L
Gift Affidavit
Agency
Michigan SOS
Michigan Department of State, Branch Offices
Primary ID Field
VIN
Sales Tax
0%
Title Required
Yes
Inspection
Not required

Inspection Requirements

No statewide safety or emissions inspection required for private gift transfers

Michigan Gift Sale — Step-by-Step Checklist

  1. Obtain the signed Michigan title from the donor — confirm no active lien or obtain a lien release
  2. Write $0 as the sale price on the bill of sale and identify the relationship between donor and recipient
  3. Complete Michigan Form TR-12L (Gift Affidavit) — both donor and recipient must sign
  4. Gather government-issued IDs for both parties
  5. Visit a Secretary of State branch office within 15 days of the gift date
  6. Pay the title transfer fee and applicable registration fees at the branch
  7. Ensure the recipient has valid Michigan auto insurance before driving

Common Pitfalls

  • Forgetting Form TR-12L means the SOS will assess the full 6% use tax on the vehicle's book value at the counter
  • The 15-day transfer deadline is firm — late transfers incur a penalty fee on top of regular title fees
  • Gifts to cousins, in-laws, aunts, or uncles do not qualify; only spouse, parent, child, sibling, grandparent, and grandchild are exempt
  • Writing a nominal price (e.g., $1) instead of $0 can void the gift exemption and trigger use-tax assessment
  • An out-of-state title may require additional verification steps before Michigan will issue a new title

Michigan Gift Bill of Sale — FAQs

Where do I get Form TR-12L?
Form TR-12L is available at any Michigan Secretary of State branch office or as a downloadable PDF from the Michigan SOS website (michigan.gov/sos).
Can the donor mail the title rather than appearing in person?
The recipient can go to the SOS branch alone if the donor has already signed the title and completed TR-12L. Both forms must be fully executed before the appointment.
Does Michigan require a vehicle inspection for gifted vehicles?
No statewide safety or emissions inspection is required for private gift transfers in Michigan. Fleet and dealer inspections are separate programs that do not apply.
What is the title transfer fee?
Michigan charges a standard title fee (currently $15) plus applicable registration fees. These are owed regardless of the gift status; only the use tax is waived.
My parent's title is handwritten and hard to read — is it still valid?
Yes, provided all required fields (names, VIN, odometer reading, and signatures) are legible. The SOS may request a replacement title if key information is unreadable.