How to Gift a Car in Delaware in 2026
Gifting a vehicle in Delaware transfers ownership from one person to another without monetary consideration. The donor must sign the title, and the recipient applies for a new certificate through the Delaware Division of Motor Vehicle (DMV). Pursuant to 21 Del. C. § 2301, all motor vehicles, truck tractors, trailers, and motorcycles must be titled in Delaware before registration and operation on highways, with limited exemptions for off-highway vehicles.
How Does Gifting a Car in Delaware Work?
In Delaware, a gifted vehicle is subject to the same title and registration procedures as other transfers of ownership. The process begins when the current owner completes the assignment section on the reverse side of the certificate of title and provides it to the recipient. The recipient then applies for a new title at a Delaware Division of Motor Vehicles office. Delaware law requires the recipient to apply for the new certificate of title within 30 days of acquisition, after which a penalty fee applies.
The Division of Motor Vehicles recommends that both parties visit a DMV office together to complete the title transfer. This ensures the buyer receives the new title and that the seller is released from liability. If the parties cannot meet at a DMV facility, the donor must submit a Seller's Report of Sale to establish proof of transfer and remove seller liability.
Delaware Car Gifting Rules You Should Know
Title Status
Pursuant to 21 Del. C. § 2301, Delaware requires title for all motor vehicles, truck tractors, trailers, and motorcycles operated on public highways. Off-highway vehicles and all-terrain vehicles (ATVs) are registered but not titled. A certificate of title is required before the vehicle may be registered or operated on Delaware highways. All original documents presented to the Division, including the current title, must be originals; photocopies are not accepted.
Odometer Disclosure
The transferor must complete the odometer disclosure box on the reverse side of the title and accurately state the current mileage. Failure to complete the odometer statement or providing a false statement may result in penalties under federal and state law. If a discrepancy is discovered later, the Affidavit to Correct Odometer Disclosure may be used to correct the record.
License Plates
When a vehicle is transferred to a new owner, the current license plate should be removed and returned to the issuing agency or transferred to the new owner. The transferee may elect to transfer an existing Delaware plate to the newly titled vehicle by bringing proof of Delaware insurance and the titles of all vehicles involved in the plate transfer to a DMV office. License plate transfer incurs a transfer fee in addition to any title and registration fees.
Taxes and Fees
Delaware does not have a sales tax. Under Delaware regulations, gifts from immediate family members are exempt from the vehicle document fee. The recipient must pay the certificate of title fee of $35 for a title without a lien or $55 for a title with a lien. Additional registration fees apply based on vehicle type and weight.
For gifts that do not qualify for the immediate family exemption, the vehicle document fee is assessed. Effective October 1, 2025, the document fee is 5.25% of the purchase price or NADA book value, whichever is greater, with a minimum fee of $8.00. If the vehicle is a gift from a non-qualifying source, the owner may provide an appraisal from a Delaware licensed vehicle dealer to establish the vehicle's value for fee calculation purposes.
Step-By-Step Process To Gift a Car in Delaware
Step 1: Confirm that the vehicle requires titling.
Most vehicles registered in Delaware require a certificate of title. Off-highway vehicles and ATVs are registered but not titled. Determine the vehicle's status to ensure the appropriate process is followed.
Step 2: Complete the assignment on the current title.
The donor must sign the reverse side of the certificate of title in the assignment section and provide the transferee's name and address. The donor must also complete and sign the odometer disclosure box with the current mileage reading. The donor's signature should match the name on the front of the title exactly as it appears.
Step 3: Obtain an original Seller's Report of Sale, if needed.
If the donor and recipient cannot meet at a DMV office, the donor must complete and mail a Seller's Report of Sale to the Division of Motor Vehicles to establish the transfer and remove the donor from liability.
Step 4: Visit a Delaware Division of Motor Vehicles office or submit by mail.
The recipient should visit a DMV office with the signed title, proof of Delaware liability insurance, and a Delaware driver's license or two accepted proofs of residency. If the gift qualifies for the immediate family exemption, documentation of the relationship—such as a birth certificate or marriage certificate—may be requested. The recipient must complete the title application and sign as the transferee.
Step 5: Pay applicable fees.
At the DMV office, the recipient pays the $35 title fee (or $55 if a lien applies), any applicable registration fees based on vehicle type, and the vehicle document fee if applicable. Immediate family gifts are exempt from the document fee, but other types of gifts are assessed the fee based on NADA value.
Step 6: Register the vehicle.
After the title is issued, the recipient completes vehicle registration, which includes providing proof of liability insurance and paying the applicable registration fee for the vehicle type and weight.
Documents Needed for Gifting a Car in Delaware
| Document | Requirement |
|---|---|
| Current Certificate of Title | Must be original; signed by donor in the assignment section with odometer reading completed |
| Proof of Liability Insurance | Delaware insurance authorized to write in the state; coverage minimum: $25,000/$50,000/$10,000 |
| Delaware Driver's License or Proof of Residency | Recipient must present a valid driver's license or two accepted proofs of residency |
| Proof of Relationship (if required) | Birth certificate, marriage certificate, or similar document if the relationship to donor is not evident |
| Seller's Report of Sale | Required if donor and recipient cannot meet at DMV office; must be completed within 30 days |
| Application for Title Form (MV212) | For vehicles being titled in Delaware for the first time; completed and signed by recipient |
For immediate family gifts, proof of the family relationship may be required if the connection is not evident from the names or other documents presented. For gifts outside the immediate family, a bill of sale or affidavit should be provided indicating no monetary consideration was exchanged.
Applicable Fees and Taxes When Gifting a Car in Delaware
| Fee Type | Amount | Notes |
|---|---|---|
| Certificate of Title (no lien) | $35.00 | Required for all titled vehicles |
| Certificate of Title (with lien) | $55.00 | Applied when a lienholder is named on the title |
| Vehicle Document Fee | 5.25% of value (minimum $8.00) | Effective October 1, 2025; exempt for immediate family gifts |
| License Plate Transfer | Included in registration | Required if transferring plate to another vehicle |
| Registration (Cars, annual) | Varies by vehicle | See DMV fee schedule for current rates |
| Registration (Motorcycles, annual) | Varies | See DMV fee schedule for current rates |
Gifts from a spouse, parent, grandparent, child, sibling, or their step and in-law equivalents are exempt from the vehicle document fee. All other gifts are assessed the document fee based on the vehicle's current NADA average trade-in value or a professional appraisal. If a vehicle being gifted has a lien on the title, the document fee is assessed on the lien amount, and the vehicle is not considered a qualifying gift for exemption purposes.
Penalty fees apply if the recipient fails to apply for the certificate of title within 30 days of acquiring the vehicle. The $35 penalty fee does not replace the title fee; it is assessed in addition to the standard fees.
Contact Information
Delaware Division of Motor Vehicles
303 Transportation Circle, Dover, DE 19901
Phone: (302) 744-2500
Official Website: Delaware Division of Motor Vehicles
