Gifting a car in California works like a sale, with one extra form: the recipient files a Statement of Facts (REG 256) so no use tax is charged. Gifts between close family members can also skip the smog check if the registration is current.
What you need
- The California title, signed by the giver and the recipient, with “GIFT” in the purchase price field
- REG 256, Statement of Facts, completed by the recipient
- The odometer reading, if the vehicle is less than 10 years old
- A smog certificate, unless the gift is between qualifying family members and no biennial smog check is due
- No outstanding loan: a lien release (REG 166) or the lienholder’s signature on the title
- The transfer fee (about $15) and smog transfer fee (about $8) if it applies
Giver: step by step
- Sign the title and write “GIFT” where it asks for the purchase price.
- Record the mileage if the vehicle is less than 10 years old.
- Clear any loan first. A gifted vehicle can’t have an outstanding loan.
- File the Notice of Transfer and Release of Liability (NRL) online or by mail within 5 days.
Recipient: step by step
- Sign the title as the new owner.
- Fill in REG 256. This is the statement that the car is a gift, and it is what waives use tax. It is a fillable PDF from the DMV.
- Submit within 10 days at a DMV office or by mail to DMV, PO Box 942869, Sacramento, CA 94269, with the title, REG 256, any smog certificate, and the fees.
Who counts as family for smog?
The DMV’s gift checklist names “qualified family members”: parent, child, grandparent, grandchild, spouse or domestic partner. A gift between them may be exempt from smog certification as long as the registration is current. REG 227 also lists siblings (if they are minors, related by blood or adoption) as qualified relatives for the use tax statement.
Common mistakes
- Writing a dollar amount instead of “GIFT”: the DMV may charge use tax on it.
- Forgetting REG 256: without it, the transfer is treated as a sale.
- Trying to gift a car that still has a loan on it.
- Missing the 10-day deadline: a $15 penalty applies after 30 days.
Inheriting instead?
If the owner has died, see transferring a car without probate in California (REG 5).