You want to hand a car to your kid, your parent, or your brother, and you do not want to pay sales tax on a car nobody bought. Missouri makes that possible, but only if the paperwork says gift the right way. Here is exactly what the giver and the person receiving the car each do, with the forms and fees checked against the Missouri Department of Revenue.
The short answer: To gift a car in Missouri, the owner signs the title over, writes GIFT in the sale price area (not $1), and gives the new owner a Form 768 General Affidavit or a written gift statement. No notary is needed. The new owner titles the car within 30 days, pays the $8.50 title fee plus $9 processing, and pays no state or local sales tax.
Updated October 13, 2026. Checked against the Missouri Department of Revenue, the Revised Statutes of Missouri, the Gateway Vehicle Inspection Program, the Illinois Department of Revenue, and the IRS. Sources are linked at the bottom.
Key takeaways
- Write GIFT, not $1: the Department of Revenue says to put the word GIFT in the sale price area of the title.
- Gift statement: Form 768 (General Affidavit) or your own written statement. It does not need a notary.
- No sales tax: the person receiving the car pays no state or local tax on a gift.
- Both of you sign the Notice of Sale: Form 768 says the giver and the new owner both sign Form 5049, and the giver reports the transfer within 30 days.
- Plates stay with the giver: the new owner cannot use the plates that were on the car.
- No back-to-back gifts: a vehicle cannot be gifted two times in a row.
Can you gift a car to a family member in Missouri?
Yes. Missouri lets any owner give a car away with no money changing hands, and the Department of Revenue selling a vehicle page spells out the gift steps. Unlike some states, Missouri does not limit the tax break to close relatives. A gift to your son, your niece, or a friend is handled the same way, as long as it really is a gift.
The key word is gift. If the new owner pays you anything, or takes over your payments, it is a sale, and sales tax applies. Writing GIFT on a car that was actually sold is a false statement on a state form. Form 768 itself warns that a false statement in the affidavit can be punished by a fine, imprisonment, or both.
What does the person giving the car do?
- 1. Clear any loan first. If the title shows a lender, get the lien released before you sign it over. A lien release must be notarized.
- 2. Sign the title over. Every owner on the front signs and prints their name in the seller section on the back. Fill in the new owner’s name, the odometer reading, and the date.
- 3. Write GIFT in the sale price area. Do not write $1 or leave it blank.
- 4. Fill out the gift statement. Check the gift box on Form 768, General Affidavit, write in the new owner’s name, and sign it. A signed written statement that the car was a gift also works.
- 5. Hand over recent inspections if needed. A safety inspection less than 60 days old when the car needs one, and in the St. Louis area an emissions test not more than 60 days old (rules below).
- 6. Take your plates off. Remove them before the new owner drives away, valid or expired.
- 7. Report the gift within 30 days. Send a Notice of Sale (Form 5049), the tear-off notice on the bottom of the title, or a Bill of Sale (Form 1957) to the Department of Revenue. Form 768 notes that both the original owner and the new owner sign the Notice of Sale, even for a gift.
Skipping step 7 is the most common mistake. The DOR Notice of Sale page says failing to report a sale or transfer is an infraction with a fine of up to $200. It also protects you if the new owner never titles the car and racks up tickets.
What does the person receiving the car do?
The new owner titles the car at a Missouri license office within 30 days. Per the DOR buying a vehicle page, bring:
- The signed title: with GIFT in the price area.
- The gift statement: Form 768 or the written statement from the giver. DOR says the new owner must submit it with the other title documents.
- Form 108: the Application for Missouri Title and License, signed.
- Proof of insurance: a current insurance ID card, original, copy, or a readable electronic card.
- Inspections: safety and emissions, when required, not more than 60 days old.
- Personal property tax receipt: for new plates, a paid receipt for the prior year or a statement of non-assessment from your county or the City of St. Louis.
Want the full sale version of this process? Our Missouri title transfer guide covers forms, fees, and deadlines for regular sales. If you are unsure whether you need a new title, new plates, or both, read car registration vs title transfer.
Do you pay sales tax on a gifted car in Missouri?
No. The Department of Revenue says the new owner will not pay state or local tax on a gift transaction. That is the whole reason to do the paperwork right, because on a sale, state plus local sales tax is usually the biggest cost. The DOR vehicle sales tax calculator shows what a sale would have cost at your address. Our Missouri car sales tax guide for St. Louis shows what a sale would cost by city and county.
Missouri also lets an estate pass a car along tax-free. The DOR titling FAQ says that when a car goes through probate, it may be given as a gift if the person who died paid taxes on it, and no sales tax is due on that gift.
How much does it cost to gift a car in Missouri?
| Item | Who pays | Amount |
|---|---|---|
| Title fee | New owner | $8.50 |
| Title processing fee | New owner | $9.00 |
| Sales tax | New owner | $0 on a true gift |
| Registration processing fee | New owner, if getting plates | $9 for 1 year or $18 for 2 years, plus the plate fee |
| Temporary permit | New owner, optional | $5 plus a $9 processing fee at a license office |
| Late title penalty | New owner | $25 on day 31, plus $25 every 30 days after, up to $200 |
| Form 768, Form 5049 | Giver | Free |
In most cases a gift costs the new owner $17.50 for the title plus registration. Compare that with a sale, where sales tax is usually the biggest number on the receipt.
Does Form 768 need to be notarized for a gift?
No. DOR says the General Affidavit or gift statement does not have to be notarized, and title signatures in Missouri do not need a notary either. Form 768 has several other uses, such as certifying a car was not driven during a period, and a few of those do require a notary. The gift section is not one of them.
The one gift-related document that does need a notary is a lien release, if the car still had a loan on it.
Does a gifted car need an inspection or emissions test in St. Louis?
Often, yes. A gift is still a title transfer, so the normal inspection rules apply.
- Safety inspection: under RSMo 307.350, cars with fewer than 150,000 miles are exempt for the 10 years after their model year. Older or higher-mileage cars need one, done within 60 days.
- Emissions test: the Gateway Vehicle Inspection Program requires one at any sale or title transfer in St. Louis City and St. Louis, St. Charles, and Jefferson counties. It covers gas cars 1996 and newer and diesels 1997 and newer, 8,500 pounds or less. Electric and plug-in hybrid vehicles and motorcycles are exempt.
- Outside the St. Louis area: no emissions test. Safety rules still apply statewide.
Our St. Louis emissions testing guide covers stations, retests, and what fails a car.
Can you add a family member to your title instead of gifting the car?
Yes, and sometimes it is the better move. The DOR titling FAQ says to add a co-owner, you sign and print your name as seller and the person being added signs as purchaser, then you apply for a new title. If there is a loan on the car, the lienholder has to approve adding or removing a name.
Planning ahead for a parent’s car? A transfer on death (TOD) beneficiary, named on a title application, can take ownership after the owner dies without probate. That is often simpler than a gift now, if the owner still drives.
Gifting a car from Missouri to someone in Illinois
If the person receiving the car lives in the Illinois Metro East, Missouri tax rules stop at the river. Illinois taxes a gift through Form RUT-50, filed with the Illinois Department of Revenue. According to the RUT-50 instructions:
| Illinois situation | Illinois tax |
|---|---|
| Gift from a spouse, parent, brother, sister, or child (adopted children and civil union partners count) | $15 |
| Gift from anyone else, car worth under $15,000 | $100 to $465, based on the car’s age (Table A) |
| Gift from anyone else, car worth $15,000 or more | Based on fair market value (Table B) |
| Deadline | 30 days after getting the car, or 30 days after bringing it into Illinois |
Step relatives, in-laws, and grandparents or grandchildren do not get the $15 rate in Illinois. That is a real difference from Missouri, where any true gift is tax-free. The new owner then titles the car with the Illinois Secretary of State and must bring a printed copy of the RUT-50. Our guide to car auctions in Illinois covers buying on that side of the river.
Going the other way, with a car titled in another state coming into Missouri? Our guide to titling an out-of-state car in Missouri covers the extra VIN and odometer inspection.
Is there a gift tax on giving a car?
Missouri does not charge the person receiving the car. At the federal level, the IRS gift tax FAQ lists an annual exclusion of $19,000 per recipient for 2026, and says the giver, not the recipient, is generally responsible for any gift tax. Most family car gifts fall under that amount. If the car is worth more, check the Form 709 instructions or ask a tax pro.
Common Missouri gift title mistakes
- Writing $1: DOR specifically says not to. Write GIFT.
- Skipping the Notice of Sale: the gift still has to be reported within 30 days.
- Handing over the plates: the new owner needs their own registration or a temporary permit.
- Gifting it again right away: a car cannot be gifted two times in a row, so a pass-through gift to dodge tax will not work.
- Letting the 30 days slip: the late penalty starts at $25 and can reach $200.
The same mistakes trip people up in other states. Our Minnesota guide to transferring a car title to a family member shows how differently Minnesota handles it, so do not mix the two.
Shopping for a car to give?
If you are buying a car for a new driver or a parent, think about whose name goes on the title first. A car you buy and then gift gets titled twice, and you pay sales tax on your purchase either way.
Remarket Space is an online car marketplace open to the public, with no dealer license or membership needed. Every listing has an inspection report from a Remarket Space inspector, a free Carfax, and the out-the-door total before you bid. Buy Now or bid in a live auction. Cars are delivered nationwide, including to the St. Louis metro, with the delivery quote on the listing, and title issues are guaranteed for life. See cars up for auction now, learn how bidding works, and check the buyer premium fees up front. Good first-car options: cars under $5,000 and used sedans, currently located in Minnesota and shipped to Missouri with a quote.
Comparing local options? Our St. Louis hub, car auctions in St. Louis, covers them all, and how to gift a car without going over budget helps you set a price. Buying at auction? How the title transfer works after an auction explains the timing.
Frequently asked questions
Sign the title over, write GIFT in the sale price area, and give the new owner Form 768 or a written gift statement. Report the transfer on Form 5049 within 30 days. The new owner titles the car at a license office within 30 days with Form 108 and insurance.
No. The Missouri Department of Revenue says the new owner does not pay state or local tax on a gift transaction. The new owner still pays the $8.50 title fee and $9 processing fee, plus registration if they need plates.
Form 768, the General Affidavit, with the gift box checked, or a written statement that the car was a gift. The giver also files Form 5049, Notice of Sale, and the new owner files Form 108 to title the car.
Not for a gift. The Department of Revenue says the General Affidavit or gift statement does not have to be notarized. Some other uses of Form 768 require a notary, and a lien release always does.
No. The Missouri Department of Revenue says to write the word GIFT in the sale price area and not to use a sale price of $1. A $1 price makes it look like a sale instead of a gift.
No. The person receiving the gift cannot use or transfer the plates that were on the car. The giver removes them, and the new owner registers the car or gets a temporary permit.
Yes. The Illinois resident files Form RUT-50 within 30 days of bringing the car into Illinois. A gift from a spouse, parent, sibling, or child is taxed $15. Other gifts are taxed on a table based on the car’s age or value.
Sources
- Missouri Department of Revenue: Selling a vehicle (gift rules)
- Missouri Department of Revenue: Form 768, General Affidavit
- Missouri Department of Revenue: Buying a vehicle
- Missouri Department of Revenue: Notice of Sale
- Missouri Department of Revenue: Titling and registration FAQ
- Revised Statutes of Missouri 307.350: Inspection rules
- Gateway Vehicle Inspection Program: Does my vehicle need a test?
- Illinois Department of Revenue: Form RUT-50 instructions
- IRS: Frequently asked questions on gift taxes
This guide is general information, not legal or tax advice. Fees and rules can change, so confirm with the Missouri Department of Revenue before you sign over a title.
