How to Gift a Car in Rhode Island in 2026

Gifting a motor vehicle in Rhode Island requires the donor to transfer ownership by executing appropriate gift documentation and transferring the certificate of title to the recipient. Rhode Island maintains a favorable tax treatment for gifts between immediate family members, exempting such transfers from sales tax provided proper documentation is completed. The recipient must apply for a new Rhode Island certificate of title and register the vehicle through the Division of Motor Vehicles (DMV).

How Does Gifting a Car in Rhode Island Work?

A motor vehicle gift transfer in Rhode Island begins when the donor and recipient complete a gift letter, which for immediate family members requires only a signed document but for non-immediate family members must be notarized. The recipient then submits the completed Application for Registration (TR-1 form), the original title (if the vehicle was previously titled in a state that required titles), and documentation confirming the gift exemption status to the Division of Motor Vehicles. The certificate of title requirement applies to all vehicles operated in Rhode Island, regardless of whether they are gifted, purchased, or obtained by other means. As of January 1, 2024, all vehicles, including model years 2000 and older, must be titled in Rhode Island and issued a certificate of title upon payment of sales tax and registration fees. Vehicles coming from out-of-state jurisdictions require a VIN verification inspection from a local municipal police department before title can be issued.

Rhode Island Car Gifting Rules You Should Know

Title Status

Rhode Island law requires that every owner of a motor vehicle obtain a certificate of title issued by the Division of Motor Vehicles. The Division does not register or renew the registration of a vehicle unless a certificate of title has been issued or an application for title has been delivered. As of January 1, 2024, all used vehicles, regardless of model year, are now eligible for a Rhode Island certificate of title. Previously, vehicles model year 2000 and older were not required to be titled; however, those vehicles may now be titled upon submission of valid registration or a stamped paid sales tax form along with the completed TR-2/TR-9 application and applicable fees.

For vehicles coming into Rhode Island from out of state, proof of ownership must be established. If the vehicle was previously titled in a state that required titles, the original title from that state must be in the name of the seller and properly assigned to the buyer and must be presented along with a VIN inspection. If the vehicle was purchased in a state that did not require titles, valid proof of ownership such as an old registration or paid sales tax form must be presented along with a VIN inspection.

License Plates

When a motor vehicle is transferred as a gift in Rhode Island, the existing license plate may remain with the original owner or be transferred to the recipient's vehicle if both the donor and recipient consent to the transaction. License plates cannot be transferred to another owner unless a gift letter is provided if the plates are coming from a party other than the current registrant. A plate transfer takes place when an existing Rhode Island registration is moved to a new vehicle with the same owner. The registration certificate and expiration date remain valid; no new registration stickers are issued during a plate transfer.

If the recipient intends to use the existing plate from the donor's vehicle, both the donor and recipient must complete the necessary application forms and provide a signed gift letter. The cost to transfer an existing plate is $23.50 for a single-plate transfer or $43.50 for a two-way plate transfer. Alternatively, if the recipient does not wish to use the donor's plate, the donor may either retain the plate for another vehicle or allow it to expire by not renewing it. Preferred plates from the Governor's Office require a Governor's card if the plates are being transferred from a non-immediate family member.

Taxes and Fees

Rhode Island imposes no sales tax on vehicles transferred as gifts between immediate family members. Immediate family is defined as parent, stepparent, sibling, step-sibling, spouse, child, or stepchild. For gifts from non-immediate family members, a sales tax exemption also applies provided the appropriate affidavit and notarized gift letter are submitted. In both cases, sales tax may still be assessed if the recipient discovers that outstanding taxes remain due on the vehicle from a prior owner.

For non-gift vehicle transactions, Rhode Island applies a sales tax rate of 7% on passenger vehicles and motor homes. Vehicles seven years old or less are taxed on the NADA Clean Retail book value or sale price, whichever is greater. Vehicles between eight and twenty-nine years old are taxed at 7% of the sale price, provided they are not on the Cars of Particular Interest (CPI) list. Vehicles thirty years and older are assessed at 7% of the NADA Clean Retail book value, CPI book value, or purchase price, whichever is higher.

Sales tax must be paid by the 20th day of the month following the month in which the transfer occurred, even if the vehicle is not registered by that deadline. Failure to remit sales tax by this deadline results in additional interest and penalty charges. Title fees are $53.50 for a new title or transfer of title. Registration fees for passenger vehicles are based on vehicle weight and start at rates determined by the DMV fee schedule, plus a $3.50 technology surcharge. The Department of Transportation surcharge varies by registration type: $40.00 per year for two-year passenger vehicle registrations, $20.00 per year for annual registrations, $13.00 for motorcycle registrations, and other amounts for specific vehicle types as established by statute. All fees include the technology surcharge and applicable DOT surcharges. Electric vehicles are subject to an additional fee of $200, and plug-in hybrid vehicles are subject to an additional fee of $100.

Step-By-Step Process To Gift a Car in Rhode Island

Step 1: Determine whether sales tax exemption applies and gather the appropriate gift documentation.

The donor and recipient must first determine whether the transfer qualifies for a sales tax exemption. If the recipient is an immediate family member (parent, stepparent, sibling, step-sibling, spouse, child, or stepchild), a simple signed gift letter is required. If the recipient is not an immediate family member, both a signed gift letter and a notarized Affidavit of Gift of Motor Vehicle (Form SU 87-65) must be completed. The gift letter must clearly state that the vehicle is being transferred as a gift and that no monetary consideration or barter arrangements are involved.

Step 2: Ensure the vehicle has a valid certificate of title or proof of ownership.

The donor must confirm that the vehicle either holds a Rhode Island certificate of title or carries valid proof of ownership from the jurisdiction in which it was previously registered. If the vehicle was titled in another state and that state required titles, the original title must be obtained and must be in the name of the donor, properly signed and assigned to the recipient. If the vehicle was registered in a state that did not require titles, a copy of the registration or a stamped paid sales tax form from that jurisdiction must be provided as proof of prior ownership.

Step 3: Arrange for a VIN verification inspection if the vehicle is from out of state.

If the vehicle is being transferred from out of state, the recipient must contact a local municipal police department to arrange a VIN verification inspection. This inspection is required before a Rhode Island title can be issued. The police department will verify the vehicle identification number against the physical vehicle and issue documentation confirming the inspection.

Step 4: Complete the Application for Registration (TR-1 form).

The recipient must obtain and complete the Application for Registration (TR-1 form). This form requires information about the vehicle, the recipient's identity and residence address, insurance information, and the transaction type (indicating a gift transfer). If the recipient is not present in person at the Division of Motor Vehicles, the signature on the application must be notarized. The recipient must also provide a valid Rhode Island license or identification card, or out-of-state license with proof of residency.

Step 5: Provide proof of valid Rhode Island liability insurance.

The recipient must have active Rhode Island liability insurance covering the vehicle before registration can be completed. Proof of insurance must include the insurance company name, policy number, and policy effective and expiration dates. The minimum insurance requirements are bodily injury limits of $25,000 per person and $50,000 per accident, plus $25,000 for property damage, or a combined limit of $75,000.

Step 6: Submit all required documents to the Division of Motor Vehicles.

The recipient must submit the completed TR-1 application, the original title (if from a titled state) or proof of prior ownership, the signed gift letter and notarized affidavit (if required), proof of valid insurance, the VIN inspection documentation (if from out of state), and payment for all applicable fees to the Division of Motor Vehicles. Documents can be submitted in person at any DMV location, by mail to the Cranston headquarters, or by fax to a regional office. The address for mailing is Division of Motor Vehicles, 600 New London Avenue, Cranston, RI 02920-3024.

Step 7: Ensure sales tax payment is remitted by the 20th of the following month.

Sales tax must be paid by the 20th day of the month following the month of the gift transfer, even if title and registration processing is not yet complete. If the gift exemption applies, no sales tax is owed; however, the recipient should verify this status with the Division of Motor Vehicles or Division of Taxation to ensure all requirements are met and no outstanding obligations exist. If sales tax has not been paid by the deadline, additional interest and penalty charges will be assessed.

Documents Needed for Gifting a Car in Rhode Island

The following documents are required to complete a vehicle gift transfer in Rhode Island:

• Application for Registration and Title Certificate (TR-1), properly completed and signed (or notarized if the recipient is not present in person)
• Original certificate of title from the prior state of registration, if the vehicle was titled in another state
• Proof of prior ownership (such as a current or expired registration certificate, or paid sales tax form) for vehicles from non-titled states
• Signed gift letter from the donor indicating that the vehicle is being transferred as a gift with no monetary consideration
• Notarized Affidavit of Gift of Motor Vehicle (Form SU 87-65), if the gift is from a non-immediate family member
• Tax Exempt Certificate (Form T-331-1), if claiming a gift exemption from sales tax
• Valid Rhode Island driver's license or Rhode Island identification card (or out-of-state license with proof of residency)
• Current proof of valid Rhode Island liability insurance with policy number and effective dates
• VIN verification inspection documentation from a local municipal police department, if the vehicle is from out of state
• Gross Vehicle Weight Rating (GVWR) information found on the driver's side door jamb or manufacturer's label
• Current vehicle mileage reading

Applicable Fees and Taxes When Gifting a Car in Rhode Island

All fees include the $3.50 technology surcharge. Credit card payments are subject to a minimum service fee of $1.55 per transaction or 2.40% for transactions of $65.00 or more. These service fees are in addition to the DMV fees listed above and are paid to the third-party payment processor, Federal Payments.

Sales tax is not owed on bona fide gifts between immediate family members or properly documented gifts from non-immediate family members. However, sales tax must be paid by the 20th day of the month following the month of transfer on all other vehicle acquisitions, and penalties and interest accrue for late payment. For vehicles purchased from private sellers that are seven years old or less, sales tax is calculated at 7% of the NADA Clean Retail book value or sale price, whichever is greater.

Contact Information

Rhode Island Division of Motor Vehicles
600 New London Avenue, Cranston, RI 02920-3024
Phone: (401) 462-4368
Official Website: Rhode Island Division of Motor Vehicles