How to Gift a Car in Alabama in 2026

Gifting a car in Alabama is a transfer of ownership from one person to another without consideration. In practice, the donor signs the title over to the recipient, who then applies for a new Alabama title through a designated agent. Under Section 32-8-30, most motor vehicles that are 35 model years old or newer and required to be registered in Alabama must have a certificate of title.

How Does Gifting a Car in Alabama Work?

In Alabama, a gifted vehicle is handled through the same title and registration system used for other transfers of ownership. The application for title is not filed directly with the state by the owner by mail. Instead, it is submitted through a designated agent, which may be a county license plate issuing official, a licensed Alabama motor vehicle dealer, or an eligible Alabama financial institution.

For tax purposes, Alabama’s official sale rule provides that property transferred as a gift is not treated as a sale. Even so, if the recipient will operate the vehicle on public roads, the vehicle must still meet Alabama registration requirements, including liability insurance and registration within 20 calendar days of acquisition under the state’s registration requirement.

Alabama Car Gifting Rules You Should Know

A vehicle gift should begin with confirming whether the vehicle is subject to Alabama title law. If the vehicle is old enough to be exempt from titling, the county licensing official may issue registration based on an inspection of the vehicle and the ownership documents rather than a new Alabama title.

Title Status

Alabama requires the owner's name on the title application to match the name shown on the supporting ownership documents. The state’s names and signatures rule also explains that if co-owners are joined by “or,” one owner may sign, but if they are joined by “and,” both owners must sign.

License Plates

When ownership changes, the registrant should remove the existing plate. If a valid plate can be moved to another vehicle, Alabama imposes a plate transfer fee, and some counties add local issuance fees.

Taxes and Fees

A true gift is not treated as a sale under Alabama tax rules, but title fees, registration fees, local issuance fees, and ad valorem taxes may still apply when the recipient places the vehicle in service. County licensing officials collect applicable taxes and fees before registration under Section 40-23-104.

Step-by-Step Process To Gift a Car in Alabama

Step 1: Confirm whether the vehicle must be titled.

Most Alabama vehicles 35 model years old or newer require a title before registration can be completed. If the vehicle is exempt from title law, ownership may still need to be established with registration records and other supporting documents accepted in the state’s ownership document requirements.

Step 2: Complete the assignment on the current title.

The donor should sign the title exactly as the name appears on the face of the title. The recipient’s name must be entered consistently with the transfer documents, and any discrepancy in the name or signature can delay processing under Alabama’s title application rules.

Step 3: Disclose the odometer reading if required.

When mileage disclosure applies, the transfer should include the required odometer statement. Alabama provides an official odometer disclosure statement for transfers that require separate mileage certification.

Step 4: Submit the transfer through a designated agent.

The recipient applies for the new title through a designated agent rather than directly through a general online filing process. County offices that handle vehicle title and registration work are listed in Alabama’s vehicle licensing office directory.

Step 5: Register the vehicle if it will be driven.

Before a plate can be issued, the vehicle must be covered by Alabama liability insurance, and the registration must be completed within 20 calendar days after the date of acquisition under the state’s registration requirement.

Documents Needed for Gifting a Car in Alabama

The documents required for gifting a car in Alabama usually include the following:

• The current certificate of title, properly assigned to the recipient
• Supporting transfer documents accepted under Alabama’s title application rules
• Registration records if the vehicle comes from a jurisdiction that does not title that vehicle type
• A completed odometer disclosure statement when mileage disclosure is required
• Proof of Alabama liability insurance if the recipient will register the vehicle for road use

When a supporting ownership document is needed, Alabama recognizes minimum content requirements for a bill of sale or similar transfer record. In a true gift transaction, the transfer documents should accurately reflect that no sale price was paid.

Applicable Fees and Taxes When Gifting a Car in Alabama

The Alabama title application fee for a motor vehicle is $15, and designated agents add a $1.50 commission for each application processed. County license plate issuing officials may also collect an additional commission and certain local fees, as provided in the state’s title fee guidance.

If the recipient registers the vehicle, Alabama also collects registration charges and any applicable ad valorem taxes. The state publishes current counts of passenger vehicles, trucks, motorcycles, trailers, and electric vehicles in its official motor vehicle registration fee table.

Because Alabama’s sale rule excludes property transferred as a gift from the definition of a sale, a bona fide gift is generally not treated as a taxable sale based on a purchase price. If consideration is exchanged, however, the transfer should not be presented as a gift.

Contact Information

Alabama Department of Revenue Motor Vehicle Division
2545 Taylor Road, Montgomery, AL 36117
Phone: (334) 242-9000
Official Website: Alabama Department of Revenue Motor Vehicle Division