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Free Vermont Gift Bill of Sale

Vermont law sets no fixed title deadline for a gifted vehicle (23 V.S.A. §2023), but the recipient cannot drive it on Vermont roads until it is registered. Some family gifts may be exempt from Vermont's 6% Purchase and Use Tax — about $1,500 on a $25,000 vehicle — so check the DMV's list of allowable exemptions. Use Form VD-119 and note 'Gift' and the family relationship. Vermont also enforces Clean Car (California) emissions standards and requires an annual safety inspection, so factor those into the transition.

Vermont Requirements: Vermont law sets no fixed deadline for the buyer (23 V.S.A. §2023); the DMV's 60 days applies only to people moving to Vermont. 6% sales tax.

Seller Information

Buyer Information

Gift Details

Sale Information

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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? →

Vermont Gift Bill of Sale — What You Need to Know

Primary Form
VD-119
Vermont Registration, Tax & Title Application
Agency
Vermont Department of Motor Vehicles
Primary ID Field
VIN
Sales Tax
0%
Title Required
Yes
Vermont law sets no fixed title deadline for the recipient (23 V.S.A. §2023); the DMV's 60 days applies to people moving to Vermont. Complete Form VD-119, noting 'Gift' and the family relationship, and register before driving the vehicle.
Inspection
Required

Inspection Requirements

Vermont requires an annual safety inspection for all registered vehicles. The recipient must obtain a passing inspection sticker before or promptly after registration. Vermont also enforces Clean Car emissions standards (California standards), which affect which vehicles can be registered.

Vermont Gift Sale — Step-by-Step Checklist

  1. Obtain Form VD-119 (Registration, Tax & Title Application) from the Vermont DMV
  2. Complete VD-119, writing 'Gift' in the purchase price field and noting the family relationship
  3. Donor signs the back of the existing title, assigning it to the recipient
  4. Recipient gathers VD-119, the signed title, proof of insurance, and valid ID
  5. Visit a Vermont DMV office or mail the application before the recipient drives the vehicle
  6. Pay applicable title and registration fees (Purchase and Use Tax waived for qualifying family gifts)
  7. Schedule a Vermont safety inspection — the vehicle needs a current inspection sticker to remain registered
  8. Confirm the vehicle meets Vermont Clean Car standards if it is an older or out-of-state model

Common Pitfalls

  • Driving the gifted vehicle before it is registered in the recipient's name
  • Not writing 'Gift' and the family relationship on VD-119 — the DMV will assess 6% Purchase and Use Tax based on the vehicle's value
  • Forgetting that Vermont requires an annual safety inspection — a vehicle without a current sticker cannot be legally driven
  • Overlooking Vermont's Clean Car (California) emissions standards — certain older vehicles may not qualify for Vermont registration
  • Assuming any relative qualifies — confirm the transfer is on the DMV's exemption list before counting on skipping the 6% tax

Pro Tip

Registration before driving is the critical detail — don't wait on paperwork, and schedule the safety inspection early to avoid driving an unregistered vehicle after the transfer.

Vermont Gift Bill of Sale — FAQs

Does Vermont set a deadline to title a gifted vehicle?
No fixed day count was found in 23 V.S.A. §2023; the DMV's 60 days applies to people moving to Vermont. The vehicle still cannot be driven on Vermont roads until it is registered, so recipients should visit the DMV promptly after receiving a gifted vehicle.
What is the Vermont Purchase and Use Tax and how much can I save with a gift exemption?
Vermont's Purchase and Use Tax is 6% of the vehicle's value. On a $25,000 vehicle, that's $1,500. Some family gifts may be exempt — check the DMV's exemption list and document the gift properly.
What are Vermont's Clean Car standards?
Vermont adopted California's vehicle emissions standards, meaning certain vehicle models that don't meet California emissions specs may face registration issues. Most vehicles built after 2004 are compliant, but check with the Vermont DMV if you're unsure.
Can I mail the title transfer application in Vermont?
Yes, Vermont DMV accepts mailed applications. However, the vehicle cannot be driven until it is registered, so factor mail time into your plans.
Which family members qualify for the Vermont gift tax exemption?
The qualifying relationships aren't confirmed here — Form VD-119 points to the allowable exemptions on the Vermont DMV website, so check that list and note the relationship on the form.