How to Gift a Car in Maine in 2026

In Maine, gifting a motor vehicle represents a transfer of ownership from a donor to a recipient without monetary consideration. The transfer occurs through Maine's title and registration system administered by the Bureau of Motor Vehicles (BMV). Under Maine Revised Statute 29-A §662, the donor must execute an assignment and warranty of title to the recipient, and the recipient must obtain a new title in the recipient's name before transferring the vehicle to any other person.

How Does Gifting a Car in Maine Work?

In Maine, the gift transfer process integrates with both title and registration requirements. Because a true gift does not involve monetary consideration, Maine Revenue Services treats it as a nontaxable transaction, meaning no sales or use tax applies to the recipient. The recipient must still complete a bill of sale document or gift letter to establish that the transfer was for no payment and must satisfy all registration and title procedures.

The donor assigns ownership on the existing certificate of title or through a transfer form. The recipient then applies for a new title in the recipient's name, satisfies any lien releases, pays applicable title and registration fees, completes odometer disclosure, and registers the vehicle at the local municipal office or BMV branch office.

Maine Car Gifting Rules You Should Know

Title Status

Maine Title 29-A §651 and §652 require certificates of title for motor vehicles at first registration, except for those exempted by law. Vehicles more than 25 model years old are exempt from titling requirements. This is a rolling exemption that increases each year; for example, a vehicle manufactured in 1999 or earlier does not currently require a title in Maine. Motorcycles with engines of 300 CC or more and trailers with an unladen weight of 3,001 pounds or more do require titles.

When a vehicle is gifted, the recipient becomes responsible for obtaining a title in their name before operating or transferring the vehicle. If the vehicle requires a title under Maine law, the recipient must present the donor's assigned title, along with supporting documentation, to the BMV or a municipal office.

License Plates

When a vehicle is gifted, the donor should remove the license plates before delivering the vehicle. Existing plates may be retained by the donor and transferred to another vehicle owned by the same person or surrendered to the municipality. If a plate is transferred to another vehicle, a separate transaction with associated fees may be required. The recipient may obtain new plates when registering the gifted vehicle at the local municipal office.

Taxes and Fees

A true gift is not subject to Maine sales or use tax. The recipient completes a Use Tax Certificate and checks the "Gift" exemption box. However, the recipient remains responsible for title, registration, and excise tax (municipal property tax) on the vehicle.

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

Step 1: Verify title status and secure the certificate of title.

Confirm that the vehicle requires a title under Maine law. Most vehicles 25 model years old or newer must be titled. Obtain the current certificate of title from the donor. If a lien exists, the donor must obtain a lien release from the lienholder or ensure the lienholder has released the lien on the title itself.

Step 2: Prepare a bill of sale or gift letter.

The donor completes the official Motor Vehicle Bill of Sale form, marking the purchase price as $0 (zero) or indicating "gift." The form must include complete vehicle identification (year, make, model, VIN, body type, color), the donor's and recipient's names and addresses, and the odometer reading. Both parties sign and date the form.

Step 3: Complete odometer disclosure.

The donor completes the Odometer Information form (MVT-32), certifying the current odometer reading to the best of their knowledge. Both donor and recipient sign this form. If the vehicle is exempt from odometer disclosure requirements (vehicles older than certain model years or special categories), this step may be omitted.

Step 4: Execute the title assignment.

The donor signs the back of the certificate of title in the assignment section, assigning ownership to the recipient. The assignment area should include the transfer date and may be notarized for additional authentication, though notarization is not always required for gift transfers between individuals unless the title has been inactive or ownership is unclear.

Step 5: Gather supporting documentation.

Collect the assigned title, the bill of sale with a $0 purchase price, the odometer form, and any lien release documents. The recipient obtains a copy of a valid photo identification (driver's license or state ID issued by Maine or another state).

Step 6: Obtain proof of liability insurance.

The recipient secures current liability insurance in the required amounts ($50,000 bodily injury per person, $100,000 per accident, and $25,000 property damage) before proceeding with registration.

Step 7: File for a new title.

The recipient completes an Application for Certificate of Title (MVT-2) form, available at the local municipal office or BMV branch. The Application for Title form is not available online and must be obtained in person. The recipient submits the application along with the assigned title, bill of sale, odometer form, identification, proof of insurance, and the $33 title fee to the municipal office or BMV branch.

Step 8: Complete registration and pay excise tax.

The recipient presents the new title certificate (once issued) along with proof of insurance to the local municipal tax collector. The recipient pays the annual excise tax based on the vehicle's assessed value. Once the excise tax is paid, the recipient receives a registration certificate. The recipient then pays the annual registration fee for the vehicle class and type (for example, $35 for a standard passenger vehicle) to obtain license plates.

Step 9: Obtain license plates.

After registration is complete and fees are paid, the recipient receives license plates to display on the vehicle.

Documents Needed for Gifting a Car in Maine

• Current certificate of title, properly assigned by the donor to the recipient
• Motor Vehicle Bill of Sale showing $0 purchase price or marked as a gift
• Odometer Information form (MVT-32) completed and signed by both parties
• Application for Certificate of Title (MVT-2) completed by the recipient
• Valid photo identification issued to the recipient (Maine or out-of-state driver's license or ID)
• Proof of liability insurance meeting Maine minimum requirements
• Lien release (if applicable), obtained from the lienholder
• Use Tax Certificate with the gift exemption box checked (if requested by the registering agent)

For vehicles previously registered in another state, the out-of-state title or registration documentation must accompany the application. Vehicles older than 25 model years may not require a title; in such cases, an existing registration or bill of sale may be sufficient.

Applicable Fees and Taxes When Gifting a Car in Maine

The title application fee of $33 is due when submitting the Application for Certificate of Title to the BMV or municipal office. The passenger vehicle registration fee of $35 (or appropriate fee based on vehicle class) is due when registering at the municipal office. Excise tax rates vary by municipality and are assessed as a local property tax on the vehicle's valuation. The recipient should contact the local municipal assessor or tax collector for excise tax estimates.

No state sales or use tax is imposed on a bona fide gift when the recipient completes the appropriate exemption paperwork. However, if the recipient assumes an existing loan balance on the gifted vehicle, that transaction may be treated as taxable.

Contact Information

Maine Bureau of Motor Vehicles
101 Hospital Street, State House Station 29, Augusta, ME 04333-0029
Phone: (207) 624-9000
Official Website: Bureau of Motor Vehicles