How to Gift a Car in Kentucky in 2026

Gifting a motor vehicle in Kentucky involves a title transfer process with specific notarization requirements and potential tax exemptions for certain family relationships. The process requires the donor to have the title assignment notarized before the recipient completes the application at the local county clerk's office.

How Does Gifting a Car in Kentucky Work?

When a motor vehicle is transferred as a gift in Kentucky, the donor signs the back of the certificate of title in the presence of a notary public, establishing the gift transfer. The signed title is then delivered to the recipient, who takes the assigned title, proof of current Kentucky insurance, proof of valid identification, and applicable fees to the local county clerk's office in the county of residence to complete the transfer. The county clerk processes the application, collects fees and any applicable taxes, and issues a new title and registration in the recipient's name.

Kentucky law requires that all signatures on title transfers be notarized. The donor's signature must be notarized on the back of the title or on the Application for Kentucky Certificate of Title or Registration Form (TC 96-182), and the recipient's signature must be notarized as well. The county clerk can provide notarization services for a fee of $2.00 per signature, or the parties may arrange for notarization by a private notary public.

Kentucky Car Gifting Rules You Should Know

Title Status

All motor vehicles operated on Kentucky roadways must be titled and registered. The owner of a gifted vehicle is required to present satisfactory evidence of ownership and apply for a Kentucky Certificate of Title at the county clerk's office. If the vehicle already carries a Kentucky title, that title serves as the evidence of ownership. If the vehicle is being brought to Kentucky from another state or has been titled in another jurisdiction, the recipient must present the out-of-state title or bill of sale to the county clerk when applying for a Kentucky title.

License Plates

Effective January 1, 2024, Kentucky implemented a plate-to-customer model rather than a plate-to-vehicle model. When ownership of a vehicle transfers, the seller removes the existing license plate from the vehicle and retains it for use on another vehicle they own or returns it to the county clerk's office if it is no longer needed or has an expired registration. If a plate has an expired registration or is no longer needed, it must be returned to the county clerk's office. Plates may be returned in person at a branch office or mailed to the county clerk with a $2.00 mail-in fee.

The recipient of a gifted vehicle does not receive the existing plate. Once the recipient completes the title transfer at the county clerk's office, a new plate number is assigned, and a new registration document is issued. If the recipient owns another vehicle and wishes to use an unexpired plate from that vehicle on the newly gifted vehicle, they may transfer that plate to the gifted vehicle through the county clerk's office for a one-time fee of $11.00.

Taxes and Fees

Kentucky imposes a 6% motor vehicle use tax on transfers of ownership. However, under KRS 138.470(6), motor vehicles transferred between certain family members are exempt from this tax. Qualifying relationships include husband and wife, parent and child, stepparent and stepchild, and grandparent and grandchild. The parties may need to provide an affidavit documenting the relationship or a document such as a marriage license, birth certificate, or adoption papers to establish eligibility for the exemption.

The 6% usage tax is calculated based on the purchase price documented in a notarized Affidavit of Total Consideration. When no affidavit is available, the tax is calculated based on the vehicle's retail value per the National Automotive Dealers Association guide. For vehicles with a value below a minimum taxable amount, no usage tax is due.

Ad valorem property taxes may also apply to registered vehicles. Kentucky assesses motor vehicle property tax using a state tax rate applied to the estimated market value. The owner of a vehicle on January 1st is responsible for that year's ad valorem tax, and Kentucky does not prorate these taxes. The county clerk collects applicable property taxes at the time of registration.

Step-By-Step Process To Gift a Car in Kentucky

Step 1: Complete the title assignment.
The donor signs the back of the vehicle's title exactly as the name appears on the front. Both the donor's and recipient's names and addresses must be entered on the back of the title, along with the transfer date and the vehicle's current odometer reading. The donor's signature must be notarized. If the title does not have a notary field, the donor completes Form TC 96-182 with signatures and has both parties' signatures notarized.

Step 2: Determine tax treatment.
If the donor and recipient are related (husband and wife, parent and child, stepparent and stepchild, or grandparent and grandchild), the transfer may qualify for a usage tax exemption. If claiming the exemption, prepare documentation supporting the family relationship, such as a marriage license, birth certificate, or adoption papers.

Step 3: Obtain insurance.
The recipient must have proof of current Kentucky insurance in the recipient's name for the vehicle before the county clerk will issue registration. The insurance documentation must have an issue date within 45 days of its presentation to the clerk's office.

Step 4: Remove the license plate.
The donor must remove the license plate from the gifted vehicle before the recipient takes it. The donor may keep the plate if it has not expired and transfer it to another vehicle the donor owns through the county clerk's office for a one-time fee of $11.00, or return it to the county clerk's office if it is no longer needed or has an expired registration.

Step 5: Apply for title transfer at the county clerk's office.
The recipient visits the local county clerk's office in the county of residence with the following: the assigned title with both parties' signatures notarized, Form TC 96-182 if signatures cannot fit on the title, proof of valid Kentucky identification, proof of current Kentucky insurance, and payment for applicable fees and taxes. The recipient has 15 days from the date the donor signed the title to complete this step.

Step 6: Complete the registration.
The county clerk issues a new title in the recipient's name, assigns a new registration and plate, and issues a registration document. The recipient should keep the registration document with the vehicle at all times.

Step 7: Notify the county clerk if transfer is not completed.
If the recipient has not completed the transfer within 15 days, the donor may complete and submit Form TC 96-3, Affidavit of Incomplete Transfer, to the county clerk's office. This form notifies the state that ownership has been transferred but has not yet been registered in the recipient's name.

Documents Needed for Gifting a Car in Kentucky

The documents required to complete a motor vehicle gift transfer in Kentucky are:

• The original Kentucky certificate of title, with the back assignment completed and both parties' signatures notarized
• Application for Kentucky Certificate of Title or Registration (Form TC 96-182), properly completed with vehicle and owner information, signed by both the donor and recipient, with both signatures notarized (required if the title does not have sufficient space for signatures or for out-of-state titled vehicles)
• Proof of current Kentucky insurance, with an issue date within 45 days of presentation, in the recipient's name
• Valid Kentucky driver's license, Kentucky ID card, or Social Security card for the recipient
• Affidavit or supporting documentation (such as a marriage license, birth certificate, or adoption papers) if claiming a usage tax exemption based on family relationship
• Affidavit of Total Consideration, notarized, if the parties wish to document the gift value for tax purposes (optional but may be useful for establishing the gift status)

For vehicles titled in another state or being brought to Kentucky from another jurisdiction, an out-of-state title, bill of sale, or ownership documentation from the other jurisdiction must also be presented.

Applicable Fees and Taxes When Gifting a Car in Kentucky

The title application fee in Kentucky is $9.00. The county clerk also collects a $2.00 notary fee for each signature notarized at the clerk's office. Standard motor vehicle registration for 12 months is up to $21.00 for automobiles, though the fee may vary by vehicle type and weight.

Motor vehicle usage tax at 6% is collected on the transfer unless the transfer qualifies for an exemption. Transfers between qualifying family members are exempt from usage tax under KRS 138.470(6). Transfers to unrelated individuals remain subject to the 6% tax unless the vehicle was previously registered in Kentucky.

Ad valorem motor vehicle property taxes are assessed annually based on the vehicle's estimated market value. The person who owns the vehicle on January 1st is responsible for that year's property tax. Kentucky does not prorate property taxes, so a person acquiring a vehicle in December remains responsible for the full year's tax if they own it on January 1st of the following year. The county clerk collects property taxes at the time of registration or renewal.

Contact Information

Kentucky Transportation Cabinet, Division of Motor Vehicle Licensing
200 Mero Street, Frankfort, KY 40622
Phone: (502) 564-1257
Official Website: Drive Kentucky