How to Transfer a Car Title as a Gift in Philadelphia: Everything You Need to Know

Can You Transfer a Car Title as a Gift? 

In Pennsylvania, a car title is the legal document that proves who owns a vehicle. Any time a car changes ownership—whether it’s sold, inherited, or given as a gift—the title needs to be officially transferred. 

A title transfer for a gifted car is essentially the same as any title transfer, with one big bonus: you may be exempt from sales tax. That can save the recipient hundreds of dollars—if you do it correctly. 

Philadelphia drivers often ask us: 

• Do I need a bill of sale even if it’s a gift? 

• Can I gift a car to someone who’s not family? 

• How do I avoid paying sales tax on a gifted car? 

We’ll answer all these questions in the sections ahead. But first—if you want to save time and avoid mistakes—know that PA Auto Tags for Less is here to help you every step of the way. We know the ins and outs of Pennsylvania title rules, and we make the process simple and affordable.  

Who Can You Gift a Car To in Pennsylvania? 

In Pennsylvania, anyone can gift a car to anyone. You’re not limited to family members, but here’s the catch: only certain relationships qualify for a tax exemption on the transfer. 

According to PennDOT, the following recipients are eligible for sales tax exemption when receiving a gifted vehicle: 

• Spouse 

• Parent or Stepparent 

• Child or Stepchild 

• Sibling (including half-siblings and stepsiblings) 

• Grandparent or Grandchild 

So, if you’re gifting your car to your daughter—great, she won’t have to pay sales tax. But if you’re giving it to a friend or coworker, they’ll likely be on the hook for the standard 6% Pennsylvania sales tax (8% in Philadelphia). 

Tip from the pros at PA Auto Tags for Less: Even if the recipient doesn’t qualify for tax exemption, we’ll make sure you have all the paperwork done right—so there are no delays, penalties, or surprises. 

Step-by-Step: How to Transfer a Car Title as a Gift in Philadelphia 

Here’s how the title transfer process works when gifting a car in Pennsylvania: 

1. Get the Title Ready

Locate the original title of the vehicle. Make sure it’s clean (no liens) and in the name of the person giving the gift. 

If there’s still a loan on the car, the title is held by the lender, and it can’t be transferred until the loan is paid off. 

2. Fill Out the Back of the Title

On the back of the title, there’s a section called “Assignment of Title.” You’ll need to fill out: 

• Odometer reading (required by federal law) 

• The buyer’s (recipient’s) name and address 

• Your name and signature (as the giver) 

• The recipient’s signature 

Write “gift” in the sale price box. This is very important if you’re claiming tax exemption. 

3. Complete Form MV-13ST (Gift Exemption Form)

This PennDOT form certifies that the vehicle is a gift and qualifies for tax exemption. You’ll need to: 

• Indicate the relationship between the giver and recipient 

• Sign the form in front of a notary 

At PA Auto Tags for Less, we notarize this form on-site—no appointment needed. 

4. Complete Form MV-1 (Application for Title)

This is the standard form used when applying for a title in Pennsylvania. If the recipient doesn’t already have a Pennsylvania title in their name, this form is required. 

Don’t worry—at PA Auto Tags for Less, we’ll handle this paperwork for you. Our experienced team knows exactly what information to enter and how to avoid common mistakes that cause delays. 

5. Pay the Title and Registration Fees

Even if the car is a gift, there are still standard PennDOT fees involved: 

• Title transfer fee 

• Registration fee (if the recipient is also registering the vehicle) 

• Plate fee (if getting new plates) 

We’ll go over the current fee schedule with you at the time of service. 

6. Submit the Paperwork

You can take the completed forms, ID, and payment to a PennDOT authorized agent—like us at PA Auto Tags for Less. We’ll process the paperwork on the spot and give you proof of the transaction. 

No need to wait in line at the DMV or mail forms back and forth. 

What Documents Will You Need? 

Here’s what both parties should bring to complete the title transfer: 

From the Giver: 

• Original car title 

• Valid PA driver’s license or state ID 

• Form MV-13ST 

• Notarized signature (we can help) 

From the Recipient: 

• Valid PA driver’s license or state ID 

• Proof of insurance (for registration) 

• Payment for PennDOT fees 

Common Mistakes to Avoid 

We’ve seen it all—and we’ll help you avoid the pitfalls. Here are a few common mistakes people make when transferring a car title as a gift: 

• Writing the wrong odometer reading 

• Not filling out the “gift” section properly 

• Forgetting to get the MV-13ST form notarized 

• Transferring a car that still has an active lien 

• Trying to claim tax exemption for non-qualifying relationships 

At PA Auto Tags for Less, we review all forms carefully before submission to catch these errors—so you don’t have to deal with rejection letters or wasted time. 

Why Choose PA Auto Tags for Less? 

Here’s why Philadelphia drivers trust us with their title transfers: 

• Quick, walk-in service—no PennDOT lines 

• On-site notary to handle gift exemptions 

• Accurate paperwork that’s done right the first time 

• Family-owned and local—right here on Frankford Avenue 

• Affordable fees with transparent pricing 

Whether you’re gifting a car to your child, parent, or spouse, we’re here to make it simple, fast, and stress-free. 

Make It Official with Confidence 

Gifting a car should be a joyful experience—not a paperwork nightmare. By following the steps outlined above and working with a trusted local expert, you can transfer the title legally, avoid taxes (if eligible), and keep everything moving without hassle. 

If you’re in Philadelphia and ready to transfer a car title as a gift, contact us today! We’ll walk you through every step, handle the notary services, process your title, and make sure everything is filed correctly with PennDOT. 

Visit Us 

PA Auto Tags for Less 
Located on Frankford Ave, Philadelphia