Free New Mexico Gift Bill of Sale
Gifting a car in New Mexico — a genuine gift, not a sale — saves the recipient the state's 4% Motor Vehicle Excise Tax: on a $20,000 vehicle that's $800 back in their pocket. The exemption is documented with a notarized Affidavit of Gift (MVD-10018), filed with MVD Form MVD-10002 (Vehicle Title Application) and the signed title; title and register the vehicle within 30 days of the transfer.
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New Mexico Gift Bill of Sale — What You Need to Know
Sales Tax Details
New Mexico normally charges a 4% Motor Vehicle Excise Tax on vehicle transfers.
Exemption: Bona fide gifts documented with a notarized Affidavit of Gift (MVD-10018) owe no New Mexico Motor Vehicle Excise Tax
Inspection Requirements
New Mexico has no statewide emissions or safety inspection requirement for private vehicle transfers.
New Mexico Gift Sale — Step-by-Step Checklist
- Confirm it is a genuine gift — no payment or trade changes hands.
- Prepare a gift bill of sale listing the vehicle's VIN, year, make, model, odometer reading, $0 sale price, and both parties' names and addresses.
- Complete the odometer disclosure section on the existing title (required for vehicles of model year 2011 or newer).
- Donor signs the title over to the recipient and records the transfer as 'Gift' in the purchase price field.
- Complete the Affidavit of Gift of Motor Vehicle or Boat (MVD-10018) and have it notarized, and complete NM MVD Form MVD-10002 (Vehicle Title Application).
- Recipient takes the signed title, the notarized MVD-10018, MVD-10002, and proof of NM insurance to any MVD office within 30 days.
- Pay the applicable title and registration fees (tax exemption applies; flat fees still due).
Common Pitfalls
- Missing the 30-day title and registration deadline: New Mexico charges a $20 late transfer fee after that.
- Skipping the notarized Affidavit of Gift (MVD-10018): the MVD presumes a sale whenever a vehicle is titled, so without the affidavit the 4% excise tax is due — a costly oversight.
- Calling a sale a gift: the exemption is for bona fide gifts, and the affidavit is a notarized statement.
- Failing to complete odometer disclosure on the title: federal law requires odometer certification for vehicles of model year 2011 or newer, and an incomplete title will be rejected at the MVD.
- Assuming no fees are due: while the excise tax is waived, title fees, registration fees, and any applicable plate fees still apply at transfer.
Pro Tip
For a smooth New Mexico gift transfer, gather all paperwork before heading to the MVD: signed title with odometer disclosure, completed MVD-10002, the notarized Affidavit of Gift (MVD-10018), proof of insurance, and a valid ID for both parties. Completing everything at one visit avoids the 30-day clock running while you chase down missing documents.