Gifting a car in Washington State involves signing the title over to the recipient and submitting a few forms to the Department of Licensing (DOL) to avoid use tax. The core steps are completing the title transfer with an odometer disclosure, submitting a Gift Affidavit, and ensuring the new owner applies for registration. The most critical mistake is misrepresenting the transaction as a gift when money is exchanged, which is illegal and can lead to penalties.
The process starts with the current owner. On the vehicle’s title, you must complete the assignment of ownership section. This includes the sale date, the purchase price (which you will write as "$0" or "GIFT"), and the printed names and signatures of both the seller (giver) and buyer (receiver). An accurate odometer disclosure is mandatory for most vehicles under 16,000 lbs. Both parties must sign this section as well.
The key document for avoiding the sales tax is the Washington State Gift Affidavit (Form TD-420-065). This form requires the giver to swear under penalty of perjury that the vehicle is a bona fide gift with no consideration given. The recipient will submit this form with the title application.
The recipient is responsible for the final steps. They must take the signed title, the completed Gift Affidavit, and an Application for Title and Registration (Form TD-420-001) to their local county auditor or DOL office. They will need to pay title and registration fees, but the use tax will be waived thanks to the affidavit. The table below outlines the typical fees involved.
| Fee Type | Typical Cost | Notes |
|---|
| Title Application Fee | $12.00 | Standard fee for processing the new title. |
| Registration Fee (Passenger Vehicle) | Varies by county & weight | e.g., $30-$70 for a standard sedan. |
| License Plate Fee | $10.00 | If new plates are needed. |
| Filing Fee | $8.00 | Administrative processing fee. |
| Total Estimated Cost | ~$60 - $100+ | Does not include use tax, which is waived for gifts. |
It's highly recommended to complete a Bill of Sale (even for $0) for both parties' records. If there is an outstanding loan on the car, you must pay it off and get the title from the lienholder before you can gift the vehicle.
