Free Tennessee Gift Bill of Sale
Tennessee requires Form RV-F1301201 (Affidavit of Non-Dealer Transfers of Motor Vehicles) for gifts, low-price sales, and transfers between relatives — and it is how a gift is documented to avoid the state's 7% sales tax. On a $30,000 vehicle, that exception is worth $2,100. Mark the transaction as a gift and state any family relationship; the affidavit is signed under penalty of perjury.
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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? →
Tennessee Gift Bill of Sale — What You Need to Know
Primary Form
RV-F1301201
Affidavit of Non-Dealer Transfers of Motor Vehicles
Primary ID Field
VIN
Sales Tax
0%
Title Required
Yes
Title and register before the recipient drives on a public road — Tennessee sets no fixed day count. Form RV-F1301201 (Affidavit of Non-Dealer Transfers) is needed for gifts, low-price sales, and transfers between relatives; mark the gift and state any family relationship.
Inspection
Not required
Inspection Requirements
Tennessee has no statewide safety inspection. No Tennessee county requires emissions testing anymore (the county programs ended in early 2022) — confirm whether the recipient's county requires it before registering.
Tennessee Gift Sale — Step-by-Step Checklist
- Download Form RV-F1301201 from the Tennessee Department of Revenue website
- Complete the affidavit, marking the transaction as 'Gift' and clearly stating the family relationship (e.g., parent to child)
- Sign the affidavit — it is made under penalty of perjury, and the current form has no notary block
- Donor signs the back of the existing title, assigning it to the recipient
- Recipient brings the signed title, completed RV-F1301201, proof of insurance, and photo ID to the county clerk
- Title and register the vehicle before the recipient drives it on a public road
- If the recipient lives in an emissions-testing county, schedule an emissions test before registration
Common Pitfalls
- Omitting Form RV-F1301201 entirely — the Department of Revenue lists it as needed for gift transfers
- Failing to specify 'Gift' and the exact family relationship on the affidavit — vague entries can trigger a tax assessment
- Letting the recipient drive before the vehicle is titled and registered in their name
- Treating a paid sale to a cousin, aunt, or uncle as a family transfer — the relative exception covers spouses, siblings, lineal relatives, and spouses of lineal relatives, and a sale with money changing hands is not a gift
- Assuming an old emissions rule still applies — Tennessee's county emissions programs ended in early 2022
Pro Tip
Tennessee's Form RV-F1301201 is what documents a gift — complete it carefully, specify the gift and any relationship, and title the vehicle before the recipient drives it.
Tennessee Gift Bill of Sale — FAQs
Is Form RV-F1301201 required even if the vehicle is a gift with zero dollars changing hands?
Yes. The Department of Revenue lists the Affidavit of Non-Dealer Transfers as needed for gift, low-price, and relative transfers — including $0 gifts. An ordinary arm's-length sale does not use it.
Which family members qualify for Tennessee's gift vehicle tax exemption?
The affidavit's relative exception covers spouses, siblings, lineal relatives (parents, children, grandparents, grandchildren), and the spouses of children, grandchildren, and great-grandchildren. A true gift with no consideration is a separate exception. State the relationship on Form RV-F1301201.
Does Form RV-F1301201 need to be notarized in Tennessee?
The current RV-F1301201 (Rev. 5-22) is signed under penalty of perjury and has no notary block. Notarization comes into play only if the vehicle has an out-of-state title from a state that requires it — Kentucky titles excepted.
How much sales tax would I owe if I don't qualify for the gift exemption?
Tennessee's state sales tax on vehicle transfers is 7%. On a $30,000 vehicle, that's $2,100 in tax that a qualifying family gift avoids entirely.
What if I'm gifting a vehicle with an out-of-state title to a Tennessee resident?
You'll need to apply for a Tennessee title using the out-of-state title as the source document, along with the completed RV-F1301201. If the out-of-state title requires notarization in its home state (Pennsylvania, for example), Tennessee requires it notarized too — Kentucky titles excepted.