How to Gift a Car in Michigan in 2026
Gifting a motor vehicle in Michigan involves transferring the certificate of title and registering the vehicle in the recipient's name through the Michigan Secretary of State. The donor assigns ownership by signing the current title, and the recipient applies for a new title using the official application form. Within 15 days of the transfer date, the title transfer must be completed.
How Does Gifting a Car in Michigan Work?
In Michigan, a vehicle gift operates through the state's standard title and registration system. The donor completes the assignment by signing the back of the current certificate of title and providing it to the recipient. The recipient then submits an Application for Michigan Vehicle Title (Form TR-11L) to a Secretary of State office via the online e-Services portal, or by mail to the Internal Services Section.
The application must include the signed title, proof of insurance, the recipient's identification, and an odometer disclosure statement if applicable. If the recipient qualifies for a use-tax exemption based on family relationships, a declaration of the exemption is made on the title application form; otherwise, a 6% use tax is calculated on the vehicle's retail market value. The Secretary of State processes the application, collects applicable fees and taxes, and issues a new certificate of title and vehicle registration to the recipient.
Michigan Car Gifting Rules You Should Know
Title Status
A certificate of title confirms ownership of a motor vehicle in Michigan. When ownership transfers, the title must be reissued in the new owner's name. The assignment of title is accomplished by the current owner signing the back of the certificate and providing it to the new owner. If the vehicle carries a salvage, rebuilt salvage, scrap, or brand designation (such as police, taxi, municipal, or flood), that designation transfers to the new title and appears on all subsequent title documents.
Lienholders' interests must be resolved before or during the title transfer process. If a lien exists, the lienholder must either participate in the Electronic Lien and Title (ELT) system, which automatically clears the lien upon payoff, or must sign the title or provide a lien-termination letter to be attached to the transfer documentation.
License Plates
The donor must remove the vehicle's current license plate before transferring ownership to the recipient. The recipient receives a new plate upon completion of the title transfer and registration, unless the recipient owns another vehicle registered in Michigan and elects to transfer an existing plate to this vehicle. Plate transfers are available only when both vehicles are owned by the same individual and one is already registered in that person's name. A plate transfer incurs a $10 fee if the registration fee for the new vehicle is equal to or higher than the previous vehicle, or a $15 fee if the registration fee is lower.
Plates expire on the vehicle owner's birthday. The recipient may select from several plate options, including standard, military, veteran, personalized, and specialty plates. Personalized and specialty plates incur additional charges beyond the standard $5 plate fee.
Taxes and Fees
Transfers between certain family members are exempt from Michigan's 6% use tax under Michigan Compiled Laws § 205.93(3)(a). Exempt relationships are spouse, parent, child, sibling, stepsibling, grandparent, grandchild, legal ward, or legally appointed guardian. Transfers to all other recipients—including in-laws, aunts, uncles, cousins, or unrelated individuals—are subject to 6% use tax.
When a use-tax exemption is claimed, the Department of Treasury may request documentation to verify the qualifying relationship. Acceptable proof includes birth certificates, marriage licenses, and certified guardianship orders.
All vehicles are subject to registration fees, license plate fees, and other applicable fees at the time of registration.
Step-By-Step Process To Gift a Car in Michigan
Step 1: Verify title status and lien information. Confirm the vehicle is titled in Michigan or obtain the out-of-state title and any lien-termination documentation. If a lien exists, contact the lienholder to confirm payoff procedures or obtain a signed lien-release letter.
Step 2: Determine use-tax exemption eligibility. Identify whether the recipient is a qualifying family member (spouse, parent, child, sibling, stepsibling, grandparent, grandchild, legal ward, or appointed guardian). Gather supporting documentation if a relationship not evident from surnames is claimed.
Step 3: Assign the vehicle title. The donor signs and dates the back of the current certificate of title, writing "GIFT" in the purchase-price field and printing their name. Both the donor and recipient must sign if title is held jointly.
Step 4: Complete the odometer disclosure statement. Both the donor and recipient jointly complete Form BDVR-108 (Odometer Mileage Statement), certifying the vehicle's mileage at the time of transfer. Vehicles model year 1980 and older are exempt from odometer disclosure requirements. Both parties must sign and date the form.
Step 5: Remove license plates. The donor removes and retains the vehicle's license plate or surrenders it to a Secretary of State office.
Step 6: Obtain proof of Michigan No-Fault insurance. The recipient obtains a certificate of insurance from a valid insurer meeting statutory minimums and presents proof to the Secretary of State or arranges for the insurer to electronically verify coverage through the Electronic Insurance Verification (EIV) system.
Step 7: Complete the title application. The recipient completes Form TR-11L with the vehicle's VIN, year, make, model, odometer reading, and owner information (name, address, driver's license number or FEIN). If claiming a use-tax exemption, the recipient indicates the relationship to the donor in the "Claim for Tax Exemption" section.
Step 8: Gather supporting documentation. Collect the signed current title, completed odometer form, proof of insurance, the recipient's valid driver's license or state ID, lien-termination letter (if applicable), and proof of relationship if needed to substantiate an exemption claim.
Step 9: Submit application and documents. The recipient submits all documents and payment to a Secretary of State office during business hours, by mail to the Internal Services Section address provided by the agency, or online through the Secretary of State e-Services portal.
Step 10: Pay all applicable fees and taxes. The recipient pays the $15 title fee, calculated registration fees, any 6% use tax (if not exempt), the $5 plate fee (or applicable specialty plate fee), and any optional charges (Recreation Passport, personalization, EV or PHEV surcharge).
Step 11: Receive new title and registration. The Secretary of State processes the application and mails the new certificate of title, vehicle registration, and license plate to the recipient within approximately 60 days.
Step 12: Install plate and operate vehicle. The recipient installs the new license plate and registration tab on the vehicle. The registration remains valid until the owner's birthday, at which time renewal becomes due.
Documents Needed for Gifting a Car in Michigan
- Current certificate of title, signed and dated by all current owners
- Application for Michigan Vehicle Title (Form TR-11L), completed by the recipient
- Odometer Mileage Statement (Form BDVR-108), signed by both donor and recipient (not required for vehicles model year 1980 or older)
- Proof of valid Michigan No-Fault automobile insurance in the recipient's name
- Recipient's valid driver's license or state ID
- Donor's driver's license or state ID (may be photocopied)
- Lien-termination letter or title signed by lienholder (required if a lien exists)
- Proof of qualifying relationship, if claiming a use-tax exemption (birth certificate, marriage license, or guardianship order; the Department of Treasury may request this documentation)
Applicable Fees and Taxes When Gifting a Car in Michigan
| Fee or Tax | Amount | Notes |
|---|---|---|
| Title transfer fee | $15 | Required for all transfers |
| Registration fee | Calculated by formula | Based on MSRP, model year, and vehicle weight; use the online fee calculator for exact amount |
| License plate (standard) | $5 | Initial issuance or replacement |
| License plate (military/veteran) | $0 | No fee for eligible individuals |
| License plate (personalized or specialty) | $5 plus additional charge | Additional fees apply depending on plate type |
| Use tax (6% standard rate) | 6% of retail market value | Applied when no exemption qualifies; zero for qualifying family transfers |
| Late transfer fee | $15 | Assessed if transfer occurs more than 15 days after the date of acquisition |
| Plate transfer fee (same or higher registration) | $10 | For transfers between vehicles owned by the same person |
| Plate transfer fee (lower registration) | $15 | When transferring to a vehicle with lower registration fees |
| Recreation Passport (optional, one-year) | $15 | Provides access to state parks and recreation areas |
| Recreation Passport (optional, two-year renewal) | $29 | Available only during renewal period for eligible vehicle types |
| Electric vehicle annual fee (passenger vehicle) | $267 | Added at registration renewal for EVs |
| Electric vehicle annual fee (truck/bus) | $367 | Added at registration renewal for EV trucks and buses |
| Plug-in hybrid annual fee (passenger vehicle) | $113 | Added at registration renewal for PHEVs |
| Plug-in hybrid annual fee (truck/bus) | $183 | Added at registration renewal for PHEV trucks and buses |
Contact Information
Michigan Department of State
430 West Allegan Street, Richard H. Austin Building – 4th Floor
Lansing, MI 48918
Phone: (888) 767-6424
Official Website: Michigan Secretary of State Vehicle Services (https://www.michigan.gov/sos/vehicle)
