Do You Have To Pay Tax On A Car When Getting It Registered in MA If It Is A Gift?

Question

My Aunt recently gave me her old 2002 PT Cruiser as a gift and i was wondering if i would need to pay tax on it when getting it registered because it was a gift from a family member? Or is that only immediate family that you don't have to pay tax? Also, i live in MA.

Answer 1

In most States, this is reserved for immediate family only.

Answer 2

Definitely call your local tax office/DMV to check for sure what the laws are in your state...in my state, you would not have to pay taxes.  Worst case scenario, you could always say you bought it for $100 or some such...that might cut down on the taxes, unless they use fair market value of the vehicle to calculate tax.  Really best to ask and make sure before you go. :-)

EDITED TO ADD:

This is from the www.mass.gov website:

Vehicles Transferred from Family Members

You are exempt from paying sales tax on a vehicle transferred from any of the following family members: father, mother, brother, sister, husband, wife, son, daughter. The exemption does not apply if transferred from a grandparent, cousin, uncle or aunt.

To Register and Title Vehicles Purchased from a Non-Dealer:

You must go to a licensed Massachusetts insurance agent to obtain an active insurance policy and have the agent complete, stamp and sign an Application for Registration and Title (RMV-1).

If there is a lien against the vehicle, please make sure the lienholder information is complete and accurate.

After verifying all information, sign the RMV-1 application. Along with the completed RMV-1 application, you must submit the following documents:

The previous owner's Certificate of Title, or

The previous registration and bill of sale for vehicles that are exempt because of their age.

Note: If the title is from another state, and does not have a line on the back for the purchase price, you must submit both the previous title and a bill of sale.

Federal and Massachusetts's laws require that the seller(s) state the mileage upon transfer of ownership. Also, both buyer(s) and seller(s) are required to sign and hand print their name and date the transfer document. If the previous title has a space for a sales price, the price must be filled in. If the previous title does not have a space for a sales price, a bill of sale showing the sales price must be submitted.

Take the completed RMV-1 application and supporting documents to the nearest full service RMV center.

The sales tax for a private sale is calculated at 5% of the purchase price or the National Automotive Dealer Association (NADA) trade-in value, whichever is higher.

After completing the transaction, you will receive a registration certificate, new plates and a year of expiration decal for the rear plate. The title will be processed and mailed in approximately six (6) to eight (8) weeks. If you have a loan on the vehicle, the title will be mailed directly to your lienholder.

You must obtain a vehicle inspection sticker within seven (7) days of the registration date.