Transferring a car title to a family member in New Jersey is a straightforward process that involves completing the necessary paperwork, potentially avoiding the 6.625% state sales tax, and submitting everything to your local Motor Vehicle Commission (MVC) agency. The key is establishing your relationship as an immediate family member to qualify for the tax exemption.
Gather the Required Documents
You'll need a few essential items:
- Current Title: The signed-over title from the current owner (you). If there's a lien, you'll need a lien release.
- Registration Certificate: The current vehicle registration.
- Form BA-49: The "Application for Certificate of Ownership." This is the standard title transfer form.
- Form ISM/SS-1: This is the crucial Affidavit for Transfer of Motor Vehicle to an Immediate Family Member. This form, signed by both parties, is what exempts you from the sales tax.
- Proof of Insurance: The new owner must have valid New Jersey insurance for the vehicle.
- Proof of Identity: Driver's licenses for both parties.
Understanding the Immediate Family Member Definition
The tax exemption applies only to specific relationships. In New Jersey, immediate family includes:
- Spouse
- Domestic Partner
- Child
- Parent
- Stepchild
- Sibling
- Grandparent
- Grandchild
Costs and Submission
While you avoid the sales tax, you are still responsible for the standard title and registration fees. The current fee schedule is approximately:
| Fee Type | Cost (Approximate) |
|---|
| Title Transfer Fee | $60 |
| Registration Fee (Standard Passenger Vehicle) | $85.50 |
| Lienholder Notation Fee (if applicable) | $5 |
Take your completed paperwork and payment to a local MVC agency. The new title will be mailed to the new owner's address. It's highly recommended to check the official NJ MVC website for the most current forms and fee amounts before your visit to ensure a smooth process.
