How to Gift a Car In Florida
Gifting a car in Florida is a lot like a private sale, except no money is exchanged and your gift is tax exempt.
Written by Kornelia Drianovski
Edited by R.E. Fulton
To gift a car in
Florida
, you’ll need to transfer the vehicle’s title to the new owner as if you were selling the vehicle. - Gifting a used car in Florida works a lot like a private sale, except that no money is exchanged.
- All gifted vehicles are subject to sales and use tax exemption under Florida law.
- To gift a new car, simply involve your recipient in the purchase process and register the vehicle in their name.
- Gifting a used car in Florida works a lot like a private sale, except that no money is exchanged.
- All gifted vehicles are subject to sales and use tax exemption under Florida law.
- To gift a new car, simply involve your recipient in the purchase process and register the vehicle in their name.
How to buy a car as a gift in Florida
In Florida, the process for gifting a car is more or less the same as for buying a car in Florida:
- Bring the gift recipient to the dealership: This gives them a voice in the buying and financing process.
- Decide how to handle fees and ownership costs: Car ownership costs go beyond the initial purchase price. Reach an agreement with your recipient regarding taxes, registration fees, and ownership costs like maintenance, fuel, andauto insurance.
Keep in mind: In Florida, you cannot gift a vehicle with a
car lien
on it, so having your recipient with you at the dealership can help ensure there are no hang-ups in the process.How to gift a used car in Florida in six steps
If you want to gift an existing car or mobile home to a family member or friend, start by paying off any outstanding loans or liens on the vehicle you intend to gift. You’ll need to prove lien satisfaction to obtain the vehicle’s certificate of title from the lienholder.
If you don’t have a title, you will need to apply to your county tax collector’s office for a replacement.
Once you have the title—or if you already had it—you can initiate the Florida title transfer process.
1. Fill out the back of the car title
Both you and your intended recipient will need to complete the Transfer of Title by Seller, located on the back of the vehicle’s paper title. You should include the following information:
- The name and address of your intended recipient
- The date of the gift
- The odometer reading at the time of gifting (unless the car is older than 10 years)
Once you’ve filled everything out on the transfer section, both you and the new vehicle owner will have to sign and print your names on the title.
Pro tip: If you only have an electronic title, you and your recipient can fill it out electronically to initiate the transfer of ownership.
Keep in mind: If you lose the paper title, you'll need to visit the DHSMV for a duplicate title (
Form HSMV 82101
).2. Complete Form HSMV 82040 for vehicle title transfers
In addition to the Transfer of Title by Seller, you’ll also want to complete the
Application for Certificate of Title with/without Registration
, also known as Form 82040
. Make sure to mark that the vehicle is a gift on your application to exempt the sale from tax. 3. Provide a sworn statement regarding the gift
You’ll also need to provide a sworn statement along with the application, which should include:
- A description of the car, including the make, model, year, and vehicle identification number (VIN)
- Your name and address
- A statement that the title is being transferred without monetary compensation
- Proof that there is no outstanding lien on the vehicle
At this stage, you also have the option to draw up a bill of sale, also known as a “notice of sale.” While it’s not required, a bill of sale can verify the transfer of ownership for the Florida Department of Revenue and protect you from liability should the car end up in an accident before the title transfer is processed.
4. Complete the title transfer at a motor vehicle service center
Once you fill out the title and the Application for Certificate of Title, along with any other supporting documents, head to your local Florida Department of Highway Safety and Motor Vehicles (FLHSMV) motor vehicle service center.
When you visit, make sure you bring the following documentation with you:
- A copy of the completed vehicle title
- Proof of avalid Florida insurance policy
- The vehicle’s registration card
- Payment for all transfer fees
Keep in mind: You’ll also need to surrender your Florida license plates at the DMV—your gift recipient will get new ones when they register the vehicle in their name!
5. Pay your title transfer fees
For all title transfers, including out-of-state titles, the Florida title transfer fee is $75.25. If you want to expedite the title, there is an additional $10 fast title fee.
6. Purchase Florida liability insurance or full coverage
Once you’ve initiated the title transfer, provided all supporting documentation, and paid all applicable fees, you’ll want to make sure your gift recipient is insured!
A car cannot be gifted in the state of Florida without proof of insurance for yourself and a Florida Insurance Affidavit (
Form HSMV 83330
) on the part of your recipient. Under the Florida statutes, all drivers must carry both
property damage liability insurance
and personal injury protection
(PIP). But in most cases, it’s best to purchase collision and comprehensive coverage as well for a full-coverage policy
. FAQs
Can I transfer my Florida plates when I gift a vehicle?
Unfortunately, no—a transfer of plates cannot be completed if the vehicle is being gifted. Once your recipient receives the title transfer and registers the car, they will be issued new plates by the FLHSMV.
Is it better to gift a vehicle or sell it for $1 in Florida?
If you’re trying to give a car to a family member or friend, it’s better to transfer it as a gift than sell it for $1 in Florida. Florida is one of the few states that does not charge any gift tax on car titles transferred as a gift—making gifting the better option since you avoid paying any sales tax, and the process of transferring ownership is slightly easier.
Should I transfer my car as a gift or sell it for $1?
Unlike many other states, Florida doesn’t hit you with a gift tax when you pass on a car title as a gift. When it comes to sales tax, they look at the selling price, not market value. So, giving someone a car as a gift in Florida may be a better option than selling it for $1 because you avoid paying any sales tax, and the process of transferring ownership is slightly easier.
Keep in mind: If you imported a new vehicle into Florida from another state, you will have to pay the use tax on car sales within six months. If you paid tax in the prior state, you could file for a tax credit to pay a total of 6% or more.
Can I gift my car to a teen driver?
Yes, you can gift your car to a teen driver.
However, do expect higher rates: If the gifted car is a teenager’s first car, prepare for high car insurance rates. Consider the cost of insurance between the teen having their own car and policy vs. adding a second vehicle and driver to your policy.
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