How To Transfer a Car Title to a Family Member in Alabama in 2026

Transferring a car title to a family member in Alabama is a legal process administered by the Alabama Department of Revenue (ALDOR). Whether the transfer is structured as a gift or a private sale, both parties must follow the procedures established by the Motor Vehicle Division to ensure the vehicle's ownership is properly recorded in the state's titling system.

What Does Transferring a Car Title to a Family Member in Alabama Mean?

Transferring a car title to a family member in Alabama means legally changing the recorded ownership of a motor vehicle from one individual to another through the state's official titling process. In Alabama, the certificate of title serves as the primary legal document proving ownership of a motor vehicle. Until that title is formally reassigned and a new certificate is issued in the recipient's name, the original owner remains the legal owner on record.

All title applications in Alabama must be submitted through a Designated Agent of ALDOR. Designated Agents include:

• County License Plate Issuing Officials (County Probate Offices or Revenue Commissioners)
• Licensed Alabama motor vehicle dealers
• Financial institutions located in Alabama, such as banks and credit unions

The state's titling system, known as ALVIN (Alabama Vehicle Information Network), processes all title applications electronically. Once the application and supporting documents are submitted to a Designated Agent and forwarded to ALDOR, a new certificate of title is typically issued within 10 to 15 business days.

A transfer between family members may be structured either as a gift (no monetary exchange) or as a sale (with an agreed purchase price). Each structure has different tax implications under Code of Alabama § 40-23-100, which governs casual sales and use tax on vehicles.

Eligible Family Members for Title Transfers in Alabama

Alabama law does not enumerate a specific closed list of "family members" who qualify for a tax-free vehicle transfer. Instead, the tax treatment of a private vehicle transfer between any two individuals — including family members — depends on whether the transaction constitutes a true gift under the state's casual sales and use tax rules.

Under those rules, if a vehicle is transferred as a genuine gift with no lien attached to the vehicle, no casual sales or use tax is owed at the time of registration. If the vehicle carries an active lien, the county licensing official is required to collect casual sales and use tax regardless of the family relationship or stated gift intent.

Common family relationships for which vehicle title transfers are routinely processed in Alabama include:

• Spouses
• Parents and children (including stepparents and stepchildren)
• Grandparents and grandchildren
• Siblings
• In-laws
• Other close relatives

Regardless of the relationship, both parties must be prepared to complete the standard title transfer process. If the vehicle is being sold — even at a reduced price — rather than gifted outright, casual sales and use tax applies to the stated purchase price at the time of registration.

How To Transfer a Car Title as a Gift to a Family Member in Alabama

When a vehicle is transferred as a gift in Alabama — with no monetary consideration exchanged and no lien on the vehicle — the process is as follows:

Step 1 — Confirm the title is clear of liens. Before proceeding, the current owner must ensure no active lienholder is recorded on the title. If a lien exists, it must be released or paid off before the gift transfer can proceed without triggering casual sales tax.

Step 2 — Complete the title assignment on the back of the current certificate of title. The seller (donor) must complete the assignment section on the reverse of the existing Alabama certificate of title. This includes:

• The full legal name of the recipient (family member)
• The recipient's Alabama address
• The date of transfer
• The purchase price or transfer value — enter "Gift" or "$0" in the price field
• The odometer reading (required for vehicles under 20 model years old and under 16,000 lbs. GVWR)
• The donor's legal signature

Step 3 — Prepare a Bill of Sale. Although a bill of sale is not always legally required for a gift transfer in Alabama, it is strongly recommended. Write "Gift" as the purchase price, include the date of transfer, and have both parties sign the document. This protects both the donor and recipient.

Step 4 — The recipient submits the application to a Designated Agent. The family member receiving the vehicle must visit their County License Plate Issuing Official or another Designated Agent and submit:

• The assigned certificate of title
• Any supporting documents
• Payment for applicable fees

Step 5 — Obtain new registration. After the title application is processed, the recipient must also register the vehicle in their name and obtain Alabama license plates, if not already issued.

How To Transfer a Car Title as a Sale to a Family Member in Alabama

When a family member purchases a vehicle for an agreed price, the transfer is treated as a private (casual) sale. The process mirrors that of any private vehicle transaction in Alabama:

Step 1 — Agree on a purchase price and complete the title assignment. The seller must fully complete the assignment section on the reverse of the current certificate of title, including:

• The buyer's full legal name and Alabama address
• The agreed purchase price
• The date of transfer
• The odometer reading (required for vehicles under 20 model years old and under 16,000 lbs. GVWR)
• The seller's legal signature

Step 2 — Prepare a Bill of Sale. A written bill of sale documents the terms of the transaction. It should include the vehicle's year, make, model, and Vehicle Identification Number (VIN), the full names and addresses of both parties, the sale price, and the date.

Step 3 — Release any existing lien (if applicable). If the vehicle is subject to a lien, the lienholder must provide a lien release before or as part of the title transfer process.

Step 4 — The buyer submits the title application to a Designated Agent. The buyer (family member purchasing the vehicle) must visit a County License Plate Issuing Official and present the assigned title, bill of sale, and supporting documents. The licensing official will collect:

• The title transfer fee
• The designated agent's commission
• Casual sales and use tax on the purchase price, per Sections 40-23-100 through 40-23-111 of the Code of Alabama 1975
• Vehicle registration fees

Step 5 — Register the vehicle. The buyer must register the vehicle in their name and secure Alabama license plates. Registration fees vary by vehicle type and county.

What Documents Are Needed To Transfer a Car Title to a Family Member in Alabama

The following documents are required to transfer a car title to a family member in Alabama, per ALDOR title application requirements:

Required for all transfers:

• Current Alabama Certificate of Title — The existing title, properly assigned to the recipient on the reverse side. The name(s) on the title application must exactly match the name(s) in the assignment.
• Title Application (Form MVT 5-1C) — Completed by the new owner. The owner's name, legal signature, and a physical Alabama address are required.
• Valid Government-Issued Photo Identification — For both parties.
• Odometer Disclosure — Required for vehicles under 20 model years old and under 16,000 lbs. GVWR, consistent with federal requirements established by the National Highway Traffic Safety Administration (NHTSA) effective January 1, 2021.

Required for sale transfers only:

• Bill of Sale — Documenting the agreed purchase price, vehicle details, and signatures of both buyer and seller.

Additional documents that may be required:

• Lien Release Documentation — If a lienholder was previously recorded on the title, written evidence of the lien release must be provided.
• Power of Attorney (Form MVT 5-13) — If an authorized representative is signing on behalf of an owner who is unable to appear in person.
• Affidavit to Correct an Assignment (Form MVT 5-7) — If there is an error in the title assignment that requires correction before processing.

Note: Alabama does not require title assignments or supporting documents to be notarized, per ALDOR title application policy. In lieu of handprinted signatures, an electronic signature is acceptable when authorized by the department.

How To Transfer a Car Title to a Family Member Online in Alabama

Alabama offers limited online services for vehicle title transactions through the MVTRIP portal and the Public Title Portal maintained by ALDOR.

A standard family title transfer — where ownership is being reassigned from one person to another — cannot be completed entirely online in Alabama. The new owner must appear in person before a Designated Agent (County License Plate Issuing Official or other authorized agent) to submit the assigned title and supporting documents, pay all applicable fees and taxes, and complete the registration process.

What's the Cost To Transfer a Car Title to a Family Member in Alabama?

The following fees apply to a standard title transfer in Alabama. All official fee schedules are published on the Alabama Department of Revenue Motor Vehicle Certificate of Title Fee page and the Motor Vehicle Registration Fees page.

Title Fees:

Registration Fees (varies by vehicle type, per ALDOR registration fee schedule):

Casual Sales and Use Tax (for sale transfers only):

When a vehicle is transferred as a sale — rather than a true gift — casual sales and use tax is due at registration. The authority for this tax is found in Section 40-23-100 through 40-23-111, Code of Alabama 1975. The state sales tax rate for automotive vehicles is 2% of the purchase price. Local county and municipal taxes may also apply and are collected by the county licensing official at the time of registration.

Gift transfers with no lien: If the vehicle is transferred as a genuine gift and no lien is recorded on the title, no casual sales or use tax is collected at the time of registration, per the state's casual sales and use tax rules.

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