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Free Tennessee Gift Bill of Sale

Tennessee requires Form RV-F1301201 (Affidavit of Non-Dealer Transfers of Motor Vehicles) for every private vehicle transfer — gifts included — and this form is the key to avoiding the state's 7% sales tax on gifts between immediate family members. On a $30,000 vehicle, that exemption is worth $2,100. The form must clearly state the transaction is a gift and identify the family relationship; without it, the county clerk will collect sales tax at registration.

Tennessee Requirements: Transfer title within 30 days. 7% sales tax.

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Buyer Information

Gift Details

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Tennessee Gift Bill of Sale — What You Need to Know

Primary Form
RV-F1301201
Affidavit of Non-Dealer Transfers of Motor Vehicles
Agency
Tennessee Department of Revenue, Motor Vehicle Title & Registration
Primary ID Field
VIN
Sales Tax
0%
Title Required
Yes
Title must be transferred within 30 days. Form RV-F1301201 is required for ALL private-party transfers including gifts — it must specify the gift nature and the family relationship.
Inspection
Not required

Inspection Requirements

Tennessee has no statewide safety inspection. Emissions testing is required in Davidson, Hamilton, Rutherford, Sumner, Williamson, Wilson, and Knox counties — confirm whether the recipient's county requires it before registering.

Tennessee Gift Sale — Step-by-Step Checklist

  1. Download Form RV-F1301201 from the Tennessee Department of Revenue website
  2. Complete the affidavit, marking the transaction as 'Gift' and clearly stating the family relationship (e.g., parent to child)
  3. Both donor and recipient sign the affidavit — have it notarized if required by your county
  4. Donor signs the back of the existing title, assigning it to the recipient
  5. Recipient brings the signed title, completed RV-F1301201, proof of insurance, and photo ID to the county clerk
  6. Complete the title transfer within 30 days of the gift date
  7. If the recipient lives in an emissions-testing county, schedule an emissions test before registration

Common Pitfalls

  • Omitting Form RV-F1301201 entirely — the county clerk will charge 7% sales tax on the vehicle's market value without it
  • Failing to specify 'Gift' and the exact family relationship on the affidavit — vague entries can trigger a tax assessment
  • Missing the 30-day title transfer deadline, which results in penalty fees
  • Gifting to a cousin, aunt, uncle, or in-law — these relationships do not qualify for Tennessee's family gift tax exemption
  • Forgetting about emissions testing requirements if the recipient registers in Davidson, Hamilton, Rutherford, Sumner, Williamson, Wilson, or Knox county

Pro Tip

Tennessee's Form RV-F1301201 is non-negotiable for any private transfer — complete it carefully, specify the gift and relationship, and file within 30 days to lock in the tax exemption.

Tennessee Gift Bill of Sale — FAQs

Is Form RV-F1301201 required even if the vehicle is a gift with zero dollars changing hands?
Yes. Tennessee requires this affidavit for every non-dealer private transfer regardless of price, including $0 gifts. Skipping it means the county clerk will assess sales tax.
Which family members qualify for Tennessee's gift vehicle tax exemption?
Spouse, parent, child, sibling, grandparent, and grandchild qualify. The relationship must be stated on Form RV-F1301201. In-laws and cousins do not qualify.
Does Form RV-F1301201 need to be notarized in Tennessee?
Notarization requirements can vary by county. Check with your specific county clerk's office — some counties require notarization while others accept signatures without it.
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%, applied to the vehicle's market value. 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 and proof of the family relationship.