How to Gift a Car in Oregon in 2026

Gifting a motor vehicle in Oregon involves completing a title transfer from the donor to the recipient through the Oregon Department of Transportation (ODOT). The transfer process is substantially the same whether the vehicle changes ownership as a gift, sale, or donation.

How Does Gifting a Car in Oregon Work?

In Oregon, all vehicle ownership transfers require application for a new certificate of title within 30 days of the date of transfer. The donor must notify ODOT of the transfer within 10 days by submitting online, by mail, or in person. The recipient then initiates the formal title transfer process by submitting a completed title application form, the original title or ownership document, proof of ownership, the title transfer fee, any applicable registration fees, and evidence of liability insurance if the vehicle will be operated on public roads.

Unlike some states, Oregon does not distinguish between gift transfers and other ownership changes for title processing purposes. Both the donor and recipient have specific obligations: the donor must sign the transfer section on the title and provide odometer disclosure if required, while the recipient must submit the application for title and ensure the vehicle meets registration requirements before it can be driven legally.

Oregon Car Gifting Rules You Should Know

Title Status

Most motor vehicles operated on Oregon public roads must be titled with the state before registration can be completed. Vehicles receiving Oregon titles include passenger automobiles, light trucks, motorcycles, travel trailers, and many recreational vehicles. The title requirement applies regardless of the vehicle's age or condition, with limited exceptions for vehicles older than a certain model year or those used exclusively off-road.

When a vehicle transfer occurs, the new owner must be listed on the title. The original title or ownership document must be surrendered to ODOT as part of the application. If the title has been lost or destroyed, a replacement title must be obtained before the transfer can proceed, particularly if the vehicle requires odometer disclosure.

License Plates

When the recipient acquires the vehicle, the donor's license plates may remain with the original owner or be transferred to another vehicle. Alternatively, the donor may surrender the plates to avoid continued registration liability. If the recipient intends to use the same plates, a $30 plate transfer fee applies, in addition to any standard title and registration fees. The recipient cannot operate the vehicle on public roads without valid Oregon license plates.

Taxes and Fees

Oregon imposes no sales tax on motor vehicle purchases and gifts. However, title fees, registration fees, and in some cases ad valorem property taxes apply to the gifted vehicle once it is placed in service. The vehicle use tax applies only to certain new or nearly new vehicles purchased from out-of-state dealers; gifts of vehicles between individuals do not trigger use tax obligations.

Registration fees for passenger vehicles depend on fuel economy. For two-year registration, vehicles with 0-19 MPG combined are charged $126; vehicles with 20-39 MPG are charged $136; and vehicles with 40 MPG or higher are charged $156. All-electric passenger vehicles are charged $316 for a two-year registration. Additional county fees may apply based on the vehicle's location or the recipient's residence, ranging from $30 to $112, depending on the county. These fees are collected at the time of title and registration processing.

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

Step 1: Confirm the vehicle is titled in Oregon.
Before proceeding, verify that the vehicle currently holds an Oregon certificate of title. If the vehicle was previously registered in another state or is a new vehicle, it may be accompanied by a manufacturer's certificate of origin or an out-of-state title. If the vehicle is model year 2011 or newer and titled in Oregon, and the title has been lost or destroyed, the donor must obtain a replacement title before transfer can occur.

Step 2: Complete the title assignment and odometer disclosure.
The donor must sign the title exactly as the name appears on the certificate. The back of the title contains a transfer assignment section where the donor enters the recipient's name and address and signs the document. If the vehicle is model year 2011 or newer and under 20 years old, both the donor and recipient must complete the odometer disclosure by recording the current mileage reading on the back of the title or on a separate secure odometer disclosure form and both must sign it. Alternatively, the parties may complete a bill of sale documenting the transfer without consideration.

Step 3: Notify ODOT of the transfer within 10 days.
The donor is responsible for notifying ODOT of the ownership transfer within 10 days of the transfer date. Notifications can be submitted online through DMV2U, by mail to the DMV Processing office, or in person at a local DMV office. The donor must include the recipient's name and address. Failure to notify ODOT does not invalidate the transfer but protects the donor from liability for vehicle violations occurring after the transfer.

Step 4: Submit the title application within 30 days of acquisition.
The recipient must submit a completed Application for Oregon Title within 30 days of the transfer date. The application should be submitted with the original title, the executed bill of sale or completed transfer section, the odometer disclosure (if required), proof of liability insurance if the vehicle will be registered, and payment for all applicable fees. Applications may be submitted in person at a DMV office, by mail to DMV Processing, or online through DMV2U for eligible passenger vehicles. Late applications incur penalties: $25 for applications submitted 31 to 60 days after the transfer, and $50 for applications submitted more than 60 days after the transfer.

Step 5: Obtain liability insurance and complete registration.
Before ODOT issues license plates, the recipient must provide proof of liability insurance if the vehicle will be operated on public roads. Oregon requires minimum bodily injury and property damage liability coverage of $25,000 per person, $50,000 per crash for bodily injury, and $20,000 for property damage. The recipient must supply the insurance policy number when registering the vehicle. Once the title is approved and fees are paid, the recipient receives new license plates, or the transferred plates become active.

Documents Needed for Gifting a Car in Oregon

The following documents are typically required to complete a vehicle gift transfer in Oregon:

• The original Oregon certificate of title, signed and dated by the donor in the transfer assignment section
• A completed and signed Application for Oregon Title
• A bill of sale (Form 735-501) signed by both the donor and recipient, documenting the transfer without consideration
• An odometer disclosure if the vehicle is model year 2011 or newer and under 20 years old, showing the mileage reading at transfer and signed by both parties
• Proof of liability insurance if the recipient will register and operate the vehicle on public roads (policy number or insurance documentation)
• Payment for applicable title transfer, registration, and county fees as determined by the vehicle's fuel economy rating, registration period, and location
• If the vehicle has a lienholder or previous security interest, the original release documents signed by the lienholder

If the original title cannot be located, a replacement title must be requested before the transfer application is submitted. For vehicles with out-of-state titles, the original title from the issuing state must be surrendered, and a vehicle identification number (VIN) inspection for $9 (can be done during your title appointment at DMV) may be required.

Applicable Fees and Taxes When Gifting a Car in Oregon

Title transfer fees in Oregon are established by statute and apply uniformly to all ownership transfers, including gifts.

Oregon does not impose sales tax on vehicle purchases or gifts. The vehicle privilege tax and vehicle use tax apply only to specific dealer transactions and do not apply to transfers between individuals, even when the transfer involves no consideration. Similarly, Oregon does not impose a gift tax on the transfer of personal property, including vehicles.

Contact Information

Oregon Department of Transportation Driver and Motor Vehicle Services
1905 Lana Ave NE, Salem, OR 97314
Phone: (503) 945-5000
Official Website: Oregon DMV