How to Transfer a Car Title to a Family Member in Maryland

Family members often wish to gift cars to their loved ones. Transferring your car title to any of your family members is quite possible in Maryland, and it has one huge benefit: for gift title transfers, the new car owner does not need to pay the 6% excise tax.

However, this tax exemption only applies to specific family members, and a precise, in-person process must be followed. This guide will walk you through the correct steps, the required forms, and the all-important safety inspection rules.

The Myth of “Online Transfer” vs. The Real Process

Let’s clear this up first: you cannot transfer a vehicle title online in Maryland. Any website that suggests you can is incorrect.

This is a secure process that must be done in person at a Maryland MVA branch or a licensed Tag & Title Service.

The good news? You do not need an appointment for a standard title transfer. MVA branches accept this as a walk-in service.

Who Qualifies for a “Gift” (Tax-Free) Transfer?

You can only avoid the 6% excise tax if you are “gifting” the car to a qualifying family member. The MVA’s list is very specific:

• Spouse
• Son or Daughter (including stepchildren)
• Parent or Grandparent
• Sibling
• Aunt or Uncle
• Niece or Nephew

CRITICAL: Boyfriends, girlfriends, in-laws, cousins, and “non-family members” do not qualify for the tax exemption. A transfer to a non-family member, even for $1, will be taxed by the MVA based on the vehicle’s standard book value.

How to Gift a Car in Maryland: A Step-by-Step Guide

Here is the correct process to transfer a title to a family member.

Step 1: The Giver Prepares the Original Title

The giver (current owner) must get the original Maryland Certificate of Title.

• Sign the Title: On the back of the title, in the “Assignment of Ownership” section, the giver signs their name.
• Lien Release: If there is a lien on the title (a car loan), you must have a letter from the bank (a “Letter of Lien Release”) or the title must be stamped “Lien Released” by the MVA. You cannot transfer a title with an active lien.

Step 2: Complete the Required MVA Forms

You will need two key forms:

1. Form VR-103 (Application for Maryland Gift Certification): This is your golden ticket. It must be signed by both the giver and the receiver. This is what proves to the MVA that the transfer is a tax-free gift.
2. Form VR-005 (Application for Certificate of Title): This is the main application that the receiver (new owner) fills out with their information.

Step 3: Pass the Maryland Safety Inspection (THE BIG “GOTCHA”)

This is the step everyone gets wrong. A Maryland State Safety Inspection Certificate is required for all used vehicle transfers.

THE ONLY EXCEPTION: You do not need a safety inspection if the gift transfer is between spouses or between a parent and a child.

• Gifting to a sibling, aunt, uncle, or nephew? You MUST get it inspected.

Step 4: The Receiver Visits the MVA (Walk-In)

The receiver (new owner) must take the following packet to an MVA branch or authorized Tag & Title service (no appointment needed):

• The original, signed-over Certificate of Title
• The completed Form VR-103 (signed by both parties)
• The completed Form VR-005
• The Maryland Safety Inspection Certificate (if required)
• Proof of your Maryland Auto Insurance
• Your Driver’s License

Step 5: Pay the Fees

You are avoiding the 6% tax, but you still must pay the state fees:

• Title Fee: $100
• Registration Fee: $135 (for a standard 2-year passenger car)

You will walk out with new license plates and a registration card. Your new title will be mailed to you.

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