Do you have to pay taxes on a gifted car in California? No! Under California law, you're not required to pay use tax on a vehicle you receive as a gift. Is it better to gift a car or sell it for $1 in California?
Do I have to pay taxes on a gifted car in California?
If you received a vehicle or vessel as a gift, you are not required to pay California use tax on that gift.
Can I give a car as a gift in California?
Gifting. If you're giving the vehicle as a gift or donating it to a charity, you must notify the California DMV of the change in ownership within 5 days of the gift date. You can do this either online or by mailing a completed Notice of Transfer and Release Liability (Form REG 138).
Is it better to gift a car or sell it for $1 in California?
To transfer a vehicle between family members, submit the following: The California Certificate of Title properly signed or endorsed on line 1 by the registered owner(s) shown on the title. Complete the new owner information on the back of the title and sign it.