Oregon Gift Bill of Sale

Oregon is one of the most transfer-friendly states in the country for gifting a vehicle — there is no state sales tax, so every vehicle gift is tax-free regardless of value and regardless of whether the parties are related. The main document is Oregon DMV Form 735-226; note '$0 — Gift' as the purchase price, state the family relationship, and complete the transfer within 30 days. Buyers in the Portland Metro area must budget for a DEQ emissions check.

Oregon Gift Bill of Sale — What You Need to Know

Primary Form

Form 735-226

Application for Title and Registration

Agency

Oregon DMV

Oregon Department of Motor Vehicles

Primary ID Field

VIN

Sales Tax

Title Required

Yes

Inspection

Not required

Sales Tax Details

Oregon has no general sales tax, so there is no sales or use tax on any vehicle transfer, regardless of whether it is a sale or a gift.

Exemption: Oregon has no sales tax — vehicle gifts are always tax-free; DEQ emissions check still required in Portland Metro

Inspection Requirements

Oregon requires a DEQ (Department of Environmental Quality) vehicle inspection in the Portland Metro area (Clackamas, Multnomah, and Washington counties) for most gasoline vehicles 1975 or newer. No inspection is required in other Oregon counties.

Oregon Gift Sale — Step-by-Step Checklist

Prepare a gift bill of sale listing VIN, year, make, model, odometer reading, $0 sale price, the donor's relationship to recipient, date, and both parties' signatures.
Write '$0 — Gift' clearly in the purchase price field — Oregon's no-sales-tax rule means this is purely for documentation, not tax calculation.
Donor completes the odometer disclosure on the back of the title (required for vehicles under 20 years old).
Donor signs the title assignment over to the recipient.
Complete Oregon DMV Form 735-226 (Application for Title and Registration), marking the transfer type as 'Gift.'
If the vehicle is registered in Clackamas, Multnomah, or Washington County, schedule a DEQ emissions inspection before or promptly after registration.
Recipient takes the signed title, Form 735-226, gift bill of sale, proof of Oregon insurance, and valid ID to an Oregon DMV office within 30 days.
Pay applicable title and registration fees (no sales or use tax applies).

Common Pitfalls

Assuming DEQ is only a Portland City concern: the DEQ emissions requirement covers three full counties — Clackamas, Multnomah, and Washington — not just Portland proper. Many suburban residents are surprised to discover they are in a DEQ testing area.
Leaving the purchase price blank: even though there is no tax, an empty purchase price field on Form 735-226 can cause the DMV clerk to flag the application for clarification. Writing '$0 — Gift' avoids the delay.
Missing odometer disclosure: Oregon DMV will reject the title transfer if odometer certification is missing for vehicles under 20 years old — a 5-minute step that should not be skipped.
Driving on the donor's plates: Oregon law does not allow a recipient to drive the gifted vehicle using the donor's plates after the transfer. The recipient must register the vehicle in their name and obtain valid plates before driving.
Assuming no lien means no issue: if the vehicle has a lienholder on the title, the lien must be released in writing before the title can be transferred. Obtain a lien release letter from the lender before the gift transfer.

Pro Tip

Oregon's no-sales-tax rule is the biggest advantage here — there is no family relationship requirement, no affidavit, no tax form to complete beyond the standard title application. Focus on getting the title signed, odometer disclosed, and Form 735-226 submitted within 30 days. If the recipient is in the Portland Metro area, book the DEQ appointment as soon as possible since slots can fill up during peak seasons.

Oregon Gift Bill of Sale — FAQs

Is there any tax on a gifted vehicle in Oregon?

No. Oregon has no state sales tax, so vehicle transfers — whether sales or gifts, between family or strangers — are never subject to sales or use tax. You pay only standard title and registration fees at the DMV. This makes Oregon one of the simplest states for vehicle gift transfers from a tax perspective.

Do I need the DEQ emissions test to transfer a gifted vehicle in Oregon?

Only if the vehicle will be registered in Clackamas, Multnomah, or Washington counties (Portland Metro area). If the recipient lives outside those three counties, no DEQ inspection is required. In the Portland Metro area, most gasoline-powered vehicles from 1975 or newer require a DEQ inspection — check the current DEQ schedule and budget $25–$30 for the test.

Does it matter who I gift a vehicle to in Oregon?

For tax purposes, no — Oregon's lack of sales tax means any gift transfer to any person is tax-free. There is no 'immediate family' restriction for a tax exemption because there is nothing to exempt from. You still need to complete Form 735-226 and transfer the title within 30 days regardless of the recipient's relationship to you.

How long does a recipient have to transfer a gifted vehicle title in Oregon?

Oregon requires the title to be transferred within 30 days of the date of gift. After 30 days, the DMV may impose late fees. The recipient should also ensure they have valid Oregon liability insurance before driving the vehicle.

Free Oregon Gift Bill of Sale

Seller Information

Buyer Information

Gift Details

Sale Information