New Mexico Gift Bill of Sale

Gifting a car in New Mexico to an immediate family member saves the recipient the state's 4% Motor Vehicle Excise Tax — on a $20,000 vehicle that's $800 back in their pocket. You must complete MVD Form MVD-10002 (Vehicle Title Application), mark the transaction as 'Gift,' and transfer the title within 30 days to keep the exemption valid.

New Mexico Gift Bill of Sale — What You Need to Know

Primary Form

MVD-10002

Vehicle Title Application

Agency

NM MVD

New Mexico Motor Vehicle Division, Taxation and Revenue Department

Primary ID Field

VIN

Sales Tax

Title Required

Yes

Inspection

Not required

Sales Tax Details

New Mexico normally charges a 4% Motor Vehicle Excise Tax on vehicle transfers.

Exemption: Immediate family gifts exempt from New Mexico 4% 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 the recipient qualifies as immediate family: spouse, parent, child, sibling, grandparent, or grandchild.
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 under 20 years old).
Donor signs the title over to the recipient and records the transfer as 'Gift' in the purchase price field.
Both parties complete NM MVD Form MVD-10002 (Vehicle Title Application) — mark the transfer type as 'Gift' and specify the family relationship.
Recipient takes the signed title, bill of sale, 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 transfer deadline: New Mexico imposes late fees and the gift exemption can be questioned if paperwork is delayed.
Not marking 'Gift' on MVD-10002: if the transfer type is left blank or marked 'Sale,' the MVD will assess the 4% excise tax based on book value — a costly oversight.
Gifting to a non-qualifying relative: cousins, in-laws, and domestic partners outside of legal marriage do not qualify for the immediate family exemption and will owe the full 4% tax.
Failing to complete odometer disclosure on the title: federal law requires odometer certification for vehicles under 20 years old, 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 marked 'Gift,' your gift bill of sale showing $0, 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.

New Mexico Gift Bill of Sale — FAQs

Does New Mexico charge any tax on a gifted vehicle between family members?

No. Immediate family members — spouse, parent, child, sibling, grandparent, or grandchild — are exempt from New Mexico's 4% Motor Vehicle Excise Tax. You still pay standard title and registration fees, but the tax itself is waived when you properly document the gift on MVD-10002.

What form do I need to transfer a gifted vehicle in New Mexico?

Form MVD-10002 (Vehicle Title Application) is the core document. Mark the transfer type as 'Gift,' note the family relationship, and attach your signed gift bill of sale. Both documents together establish the exemption at the MVD window.

How long do I have to transfer the title after receiving a gifted car in New Mexico?

You have 30 days from the date of the gift to complete the title transfer at an NM MVD office. Missing this window triggers late fees and may prompt the MVD to scrutinize the exemption claim.

Can I gift a vehicle to a friend and claim the tax exemption in New Mexico?

No. The New Mexico Motor Vehicle Excise Tax exemption for gifts applies only to immediate family: spouse, parent, child, sibling, grandparent, and grandchild. A gift to a friend, cousin, or in-law is treated as a taxable transfer at fair market value.

Free New Mexico Gift Bill of Sale

Seller Information

Buyer Information

Gift Details

Sale Information