Gifting a Car in Pennsylvania
Gifting a car in Pennsylvania is tax-free and relatively easy. You will need to pay title and registration fees and fill out an Affidavit of Gift form.
Written by Amber Reed
Reviewed by Kathleen Flear
Gifting a car in
Pennsylvania
is not only a lovely thing to do, it’s also fairly simple and tax-free. Complete the regular title transfer process, fill out an Affidavit of Gift form, pay the title and registration fees, and your gift is golden. Giving or getting a car as a gift is one of those big life moments that you’ll never forget. It’s also an incredibly generous thing to do! The process of how you gift a car varies by state, and there are always a few extra hoops to jump through no matter where you are.
To make sure the big event goes smoothly, the
car insurance
comparison app Jerry
is here to give you all the details on what you need to know about gifting a car in Pennsylvania. We’ll cover the process, the fees, and some miscellaneous details you might not have considered. RECOMMENDED
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How to buy a car as a gift in Pennsylvania
You can only give a car as a gift if there are no
liens
on the vehicle. If you want to give someone the gift of a brand-spanking-new car, the easiest way to do it is to bring the lucky individual car shopping with you. Making them a part of the
buying and financing process
ensures that they will get just the car they want and that the titling paperwork will be done correctly so as to avoid any future legal or financial issues. Key Takeaway You need to have the title free and clear in order to give a car as a gift, so if you want to give a new car to a lucky someone, it’s easiest to bring them to the dealership with you.
How to gift a used car in Pennsylvania
If you already own a vehicle free and clear that you want to give as a gift, you can transfer the title to the recipient. It can be an old car, one you bought outright, or one you just paid off—as long as you have the title, you can give it away as a gift.
The process is pretty straightforward and only requires one additional form to fill out. Plus, in Pennsylvania, you can give a car as a gift to anyone and it’s tax-exempt!
Negotiate the terms of the gift with your recipient
Once the big reveal is done and everyone has settled down, there are a few brass tacks that need to be tended to. Even as a tax-free gift, there are still fees associated with the process—not to mention the regular costs of owning a car.
In Pennsylvania, there will be both a title transfer fee of $58 and a registration fee of $85, for a combined total of $143.
Discuss who is going to pay for the transfer fees, as well as who is going to be responsible for insurance, maintenance costs, fuel, etc. You want to make sure that you don’t give someone the extra surprise of an unanticipated financial burden.
Here are a few of the costs you should discuss with your recipient:
Cost | Pennsylvania average |
|---|---|
Title transfer | $58 |
Registration fee | $85 |
Insurance | $1,869 (liability only)
$2,306 (full coverage) per year |
Maintenance | $1,100 per year |
Fuel | $700 to $1,000 per year |
Record the gift with an affidavit of gift form
In Pennsylvania, you only need to complete one additional form to certify that the car is, in fact, a tax-exempt gift. Fill out the
Affidavit of Gift
form (MV 13ST), and make sure both you and the recipient sign it. If the vehicle was purchased outside of Pennsylvania, you will need to provide proof of sales tax paid in that state. See the instructions on the form for details.
Transfer the vehicle title
Transferring a vehicle title
legally transfers ownership of the vehicle, and both you and the recipient will need to go to a Driver and Vehicle Service Center location together to complete it. You and the recipient will need to fill out any required information on the back of the title. You will also need to fill out a Vehicle Sales and Use Tax Return/Application for Registration form (MV 4ST). These forms have to be obtained in person.
Once you’ve filled out your forms and paid your fees, you’re done! If there are any additional fees, documents, or procedures needed (emissions test, etc) a PennDOT representative will let you know.
Purchase Pennsylvania liability insurance—or full coverage
You’ll be required to provide proof of insurance for the new registration, so make sure that you get a policy that meets Pennsylvania’s
minimum legal requirements
. Now your lucky giftee is ready to hit the road! MORE: The ultimate haunted Pennsylvania road trip
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How to find affordable car insurance in Pennsylvania
Whether you are adding it on as a finishing touch to your gift or looking to save yourself some money,
Jerry
is the best way to comparison shop for car insurance in Pennsylvania. Just download the app, enter a few bits of information, and Jerry will compare policies from over 50 top insurance providers to bring you the most competitive quotes. The average Jerry user saves almost $900 a year!
Pick the policy that suits you best, and the setup process is taken care of with just a few clicks. Fully licensed agents are available if you have any questions, and you can even get assistance canceling your old policy.
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Do you have to pay taxes on a gifted car in Pennsylvania?
No! In Pennsylvania, you are permitted to gift a car to anyone without having to pay taxes on it.
Is it better to gift a car or sell it for $1 in Pennsylvania?
The simple gifting process in Pennsylvania exists for a reason—use it! Not only will selling a car for a nominal fee like a dollar not give you any benefits, but it may also trigger an unpleasant tax audit from PennDOT, which is a gift that nobody wants.
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