How to Gift a Car in Arizona in 2026

Gifting a motor vehicle in Arizona involves a transfer of vehicle title that passes ownership from the donor to the recipient without monetary consideration. The recipient must apply for a new title and registration within 15 days of acquisition at the Arizona Motor Vehicle Division (MVD).

How Does Gifting a Car in Arizona Work?

When a gift transfer occurs in Arizona, the donor assigns the title to the recipient and provides an odometer disclosure statement. The recipient then presents the assigned title, along with a completed Title and Registration Application (Form 96-0236) and any required fees, to an Arizona Motor Vehicle Division office or authorized third party. The MVD issues a new certificate of title in the recipient's name and provides registration and license plates.

Arizona also offers an electronic title transfer option for qualifying gift transfers. The eTitle Transfer system allows eligible donors and recipients to complete the entire transfer online through AZ MVD Now without visiting an MVD office.

Arizona Car Gifting Rules You Should Know

Title Status and Requirements

A certificate of title proves ownership of a motor vehicle in Arizona. Arizona law requires that when ownership is transferred, the title must be formally assigned. All owners whose names appear on the title must complete the assignment in accordance with their legal status on the document.

Arizona titles are now issued electronically in most cases, though paper titles may still be held for specific situations. When a vehicle titled in Arizona is gifted, the donor must endorse an assignment on the Title Transfer Bill of Sale or directly on a paper title if one exists. The assignment must include the warranty of title, confirming that the donor has the right to transfer ownership.

Multiple Owners and Legal Status

When a vehicle has multiple owners, the legal status designation on the title determines which owners must sign to release the vehicle. Legal status is shown as "OR," "AND," or "AND/OR."

When co-owners are listed as "OR," only one owner is required to sign the title transfer documents. Both owners must sign the Legal Status boxes when initially applying for a title, but only one owner may sign for the transfer itself.

When co-owners are listed as "AND," both owners must sign all transfer documents. Similarly, for "AND/OR," both owners must sign the transfer, though the survivor may proceed alone after providing a death certificate if one owner is deceased.

Odometer Disclosure

Federal law requires an odometer disclosure statement for vehicles being transferred unless the vehicle qualifies for an exemption. Odometer disclosure is required for most vehicles unless exempted by age. Vehicles with a 2010 model year or older are exempt from odometer disclosure requirements once they reach 10 model years of age. Vehicles with a 2011 model year or newer are exempt from odometer disclosure requirements once they reach 20 model years of age.

The donor must provide the recipient with an odometer disclosure in the form prescribed by the Arizona Department of Transportation. This disclosure certifies the accurate mileage at the time of transfer and must be delivered with the title. The recipient must acknowledge the odometer reading. Falsifying an odometer reading may result in fines and imprisonment.

License Plates and Registration Transfer

When ownership of a vehicle transfers in Arizona, the existing registration becomes invalid. Within 30 days of the transfer, the donor must transfer the license plates, surrender them to the MVD, or submit an affidavit of license plate destruction.

If personalized or specialty plates are on the vehicle, the donor may choose to keep them and transfer them to another vehicle, with the MVD's approval. The recipient will receive new standard license plates upon registering the vehicle. A plate transfer fee of $12 applies if a personalized or specialty plate is transferred to another vehicle.

Taxes and Vehicle License Tax Calculation

A gift of a vehicle is not treated as a taxable sale for transaction privilege tax purposes under Arizona law. However, the recipient is responsible for payment of Vehicle License Tax (VLT), registration fees, and other charges upon registering the vehicle. The VLT is calculated based on the vehicle's assessed value, which differs between new and used vehicles.

For new vehicles, the VLT is calculated at $2.80 per $100 of assessed value. For used vehicles, the rate is $2.89 per $100 of assessed value. The assessed value is typically the manufacturer's base retail price or factory list price for the vehicle. For a gift transfer, the MVD assesses the value based on the vehicle's year, make, model, and condition rather than the stated purchase price.

In addition to VLT, the recipient must pay a title fee of $4, a registration fee of $8, and an air quality research fee of $1.50. These amounts may vary for special vehicle types or circumstances.

Insurance Requirements

Every motor vehicle operated on Arizona roads must be covered by liability insurance from a company licensed to do business in Arizona. Arizona requires minimum liability coverage of $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more people, and $15,000 for property damage.

Step-By-Step Process To Gift a Car in Arizona

Step 1: Determine If eTitle Transfer Is Available

The recipient and donor should check whether the vehicle qualifies for eTitle Transfer. To be eligible, the vehicle must have an Arizona title, a current Arizona registration, have no more than 2 owners, have no liens, be a passenger vehicle (not a commercial or motorcycle), have current emissions, if applicable, and have no brands or statuses that prohibit transfer. If eligible, both parties can complete the entire transfer online through AZ MVD Now. If the vehicle does not qualify, follow the in-person process beginning with Step 2.

Step 2: Complete the Title Assignment

The donor must sign the assignment section of the Title Transfer Bill of Sale or, if available, on a paper title. The assignment must include the warranty of title, affirming that the donor has the authority to transfer the vehicle. The sale payment amount should be marked as "GIFT" or "$0.00." All co-owners must sign in accordance with the legal status requirements described above.

Step 3: Provide Odometer Disclosure

The donor must certify the current odometer reading on the Title Transfer Bill of Sale. The recipient must acknowledge and sign the odometer disclosure. For vehicles exempt from odometer disclosure, the donor notes this on the transfer form.

Step 4: Complete the Title and Registration Application

The recipient completes the Title and Registration Application (Form 96-0236), providing complete personal information, mailing address, and vehicle information. The application must be signed in ink by the recipient.

Step 5: Gather Required Documents

The recipient collects the original or current vehicle title, the completed Title Transfer Bill of Sale with all required signatures, the completed Title and Registration Application, a lien release if applicable, proof of Arizona liability insurance, and payment for all applicable fees.

Step 6: Submit Documents to MVD or Third Party Office

The recipient may submit all documents in person at an MVD office or authorized third-party location, or documents may be mailed to:

Motor Vehicle Division
PO Box 2100, MD 555M
Phoenix, AZ 85001

Processing typically takes several weeks. The recipient should receive a new title certificate and registration within six weeks if submitted by mail.

Step 7: Display Temporary Registration

Until the new registration is processed, the recipient must display a temporary registration plate, another approved permit, or a valid license plate on the vehicle if it is driven on Arizona roads. Temporary documentation can be printed immediately through AZ MVD Now or obtained from an MVD office.

Documents Needed for Gifting a Car in Arizona

The documents required to complete a gift transfer of a motor vehicle in Arizona include the following:

• The current vehicle title with the assignment section completed and signed by the donor
• A completed Title Transfer Bill of Sale (Form 38-1306) with the purchase price marked as "GIFT" or "$0.00," signed by both donor and recipient
• A completed, signed Title and Registration Application (Form 96-0236)
• An odometer disclosure statement with both parties' signatures (unless the vehicle is exempt)
• A lien release, if applicable
• Proof of Arizona liability insurance covering the recipient
• Payment for applicable title, registration, air quality, and vehicle license tax fees

If the vehicle was previously titled out of state, the donor must provide the out-of-state title. If an emissions compliance form is required in the Phoenix or Tucson areas, this must also be submitted.

In cases where a vehicle lacks proper documentation, the recipient may apply for a bonded title by obtaining a vehicle inspection and completing the Bonded Title Application (Form 40-1001). A bonded title is issued after the recipient obtains a surety bond.

Applicable Fees and Taxes When Gifting a Car in Arizona

The title fee of $4.00 applies when issuing a new title. The $8.00 registration fee covers one year of registration; registrations may be obtained for one, two, or five years, depending on emissions requirements.

The Vehicle License Tax comprises the majority of registration costs and is calculated based on the vehicle's assessed value. For a gift transfer, the MVD determines the assessed value from available vehicle data rather than the purchase price.

An air quality research fee of $1.50 applies to all vehicle registrations in Arizona. In the Phoenix and Tucson areas, emissions testing may be required, incurring an additional fee from the testing facility.

If applicable, a $12.00 plate transfer fee applies when a personalized or specialty plate is transferred to another vehicle. This fee is charged to the recipient.

All fees must be paid at the time of registration. No refunds are issued for gift transfers, as the transaction represents a complete change in vehicle ownership and registration responsibility.

Contact Information

Arizona Department of Transportation Motor Vehicle Division
PO Box 2100, MD 555M
Phoenix, Arizona 85001
Phone: (602) 255-0072
Official Website: Arizona Department of Transportation Motor Vehicle Division