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How a car title transfer works
What the costs are, why they differ, and what happens in what order. Each example is one state’s rule, in plain English, with that state’s official words one tap away. An example describes that state and no other.
What is a title transfer?
A title is the paper, or the electronic record, that says who owns a vehicle. When a car is sold, given away or brought into a new state, the title has to be put into the new owner’s name with that state. That is a title transfer, and the state charges for it.
It is not the same thing as registration. Registration is permission to drive the car on the road, and it comes with plates and its own fees. The two are often done together, which is why they get mixed up.
In plain English
Idaho’s registration fees and taxes vary with the vehicle’s type, age and purchase price, and the county where the owner lives.
Idaho’s official words
“Fees and taxes for registering a vehicle in Idaho vary depending on what type of vehicle you have, its age, purchase price, and the county in which you live.”
The title fee, and why it can be more than one number
A state charges a fee for the new title itself. In many of the states we read it is one flat amount. In others the official page prints two or more, because the amount turns on something: the county, whether a lender is involved, or the kind of vehicle. Where a quote prints more than one amount, this site shows them all and adds none of them.
In plain English
Ohio prints two amounts: $18 statewide, or $23 in counties where local officials approve an additional charge.
Ohio’s official words
“The $18 title fee applies statewide. In some counties, the fee may be $23 if local officials approve an additional charge.”
Texas prints $28 or $33, depending on the county.
Texas’s official words
“Title application fee of $28 or $33, depending on the county,”
Delaware’s amount turns on a loan: $35.00 with no lien, or $55.00 when there is a lien against the vehicle.
Delaware’s official words
“The title fee is $35.00 if there is no lien or $55.00 if there is a lien against the vehicle.”
Other fees on the same visit
The title fee is often not the only line. Some states list a filing, processing or service fee that is charged on every title transaction. Where the official words say plainly that a fee is due every time, this site adds it into a second line, all the quoted flat fees due on a title transfer, and keeps the title fee on its own line above.
In plain English
Minnesota is the clearest case. Its fee table lists a title fee of $8.25, due on all initial applications for title and title transfers, and a separate filing fee of $12, due with each title transaction.
Minnesota’s official words
“Title fee $8.25 Due on all initial applications for title and title transfers”
“Filing fee $12 Due with each title transaction.”
If there is a loan on the car
A lien is a lender’s claim on the vehicle, recorded on the title until the loan is paid. Many states charge a separate fee to record it.
In plain English
Pennsylvania charges $36.00 for recording a lien, per lien, in addition to the title fee.
Pennsylvania’s official words
“Recording a Lien (Fee is per lien recorded in addition to title fee) $36.00”
Nebraska’s page puts its lien notation fee at $7.00.
Nebraska’s official words
“Lien notation fee of $7.00.”
Tax on the purchase
The tax is usually the hardest part to pin down. Some states print one rate on the purchase price. Others add county or city rates, use a book value instead of the price paid, or set a minimum. This site works out a percentage only where a state’s quotes give a single rate on the price and nothing else, and always shows it as an illustration beside the quote.
In plain English
New Jersey prints one rate: 6.625% on the purchase price of a new or used vehicle.
New Jersey’s official words
“As of January 1, 2018, the rate is 6.625% on the purchase price of a new or used vehicle.”
Missouri shows why a single figure is often not enough: a state tax of 4.225 percent, plus local sales tax, on the purchase price less any trade-in allowance.
Missouri’s official words
“State tax of 4.225 percent, plus your local sales tax on the purchase price, less trade-in allowance, if any.”
Virginia’s 4.15% is based on the vehicle’s gross sales price or $75, whichever is greater.
Virginia’s official words
“Virginia is required to collect a 4.15% Sales and Use Tax (SUT) at the time of titling whenever a vehicle is sold, and/or the ownership of the vehicle changes. The amount due is based on the vehicle's gross sales price, or $75, whichever is greater.”
Bringing a car from another state
In many of the states we read, a car that was titled somewhere else has to be looked at before the new state will title it. The check is often of the vehicle identification number, the VIN. New residents also get a deadline.
In plain English
Indiana requires a vehicle inspection for any vehicle from another state that is being titled there, including vehicles owned by new Indiana residents.
Indiana’s official words
“Any vehicle from another state that is being titled in Indiana, including vehicles owned by new Indiana residents and vehicles assigned to an Indiana resident on a manufacturer's certificate of origin, must have a vehicle inspection.”
In Indiana that inspection is done at no charge at a branch, or by a law enforcement officer, who may charge up to five dollars ($5.00).
Indiana’s official words
“The inspection may be performed at any Indiana branch or BMV certified full or partial service provider at no charge or may be performed by a law enforcement officer who may charge up to five dollars ($5.00).”
Missouri gives a new resident 30 days from the date of becoming a resident to title a vehicle.
Missouri’s official words
“You have 30 days from the date of becoming a Missouri resident to title your vehicle.”
Gifts and family transfers
A car that changes hands with no money paid still needs its title put in the new owner’s name. What often changes is the tax. The states we read treat this very differently, and several limit it to named relatives or ask for a signed form.
In plain English
In California, a person who received a vehicle as a gift is not required to pay California use tax on that gift.
California’s official words
“If you received a vehicle or vessel as a gift, you are not required to pay California use tax on that gift.”
Texas charges a $10 gift tax when the vehicle comes from a spouse, parent or stepparent, grandparent or grandchild, child or stepchild, sibling, guardian, a decedent’s estate or a non-profit 501(c)(3).
Texas’s official words
“A $10 gift tax applies to a person who receives the vehicle from a: spouse, parent or stepparent, grandparent or grandchild, child or stepchild, sibling, guardian, decedent’s estate, or a non-profit 501(c)(3).”
The steps, in order
The quotes we hold follow one pattern. The seller signs the title over to the buyer, and some states want that signature witnessed by a notary. The buyer applies for a new title with the state or county office that issues them and pays the fee and any tax. There is a deadline, counted from the sale.
In plain English
Kentucky is one of the notary states: the seller must sign the back of the title in the presence of a notary.
Kentucky’s official words
“In the sale of a vehicle, the seller must sign the back of the title in the presence of a notary.”
Washington gives 15 days to transfer ownership after buying a vehicle or receiving one as a gift.
Washington’s official words
“After you buy or receive a vehicle as a gift, you have 15 days to transfer the ownership into your name.”
If the transfer is late
In many of the states we read, missing the deadline costs a penalty, and in some the penalty grows the longer the title stays in the old name.
In plain English
Missouri’s penalty is $25 on the 31st day after purchase when the vehicle is not titled within 30 days, and another $25 for every 30 days late, up to a maximum of $200.
Missouri’s official words
“If you do not title the vehicle within 30 days, there is a title penalty of $25 on the 31st day after purchase. The penalty increases another $25 for every 30 days you are late with a maximum penalty of $200.”
Where to go from here
Pick a state for its fee, a worked example and its steps, or put the states side by side in the comparison table. How it works explains where every quote comes from and how it is checked.
Reference only, not legal or tax advice. Confirm with the agency. Full statement