How to Gift a Car in Colorado in 2026
Gifting a car in Colorado is a transfer of vehicle ownership from one person to another without monetary consideration. In practice, the donor signs the back of the current certificate of title assigning ownership to the recipient, who then applies for a new Colorado title through the county motor vehicle office. The recipient must register the vehicle within 60 days after acquisition, and a certificate of title is required for most motor vehicles registered in the state.
How Does Gifting a Car in Colorado Work?
A vehicle gift in Colorado follows the state’s standard title and registration procedures, with the significant distinction that the recipient must document the transfer as a gift rather than as a sale.
The recipient must present the current title with proper assignment from the prior owner to the county motor vehicle office in the county where the recipient resides or intends to register the vehicle. The county office processes the application, collects applicable taxes and fees, and issues a new certificate of title and registration in the recipient's name.
Colorado Car Gifting Rules You Should Know
Title Status
Colorado requires a certificate of title for most motor vehicles operated on public roadways. The donor must sign the current Colorado title in the assignment section, entering the recipient's name and address. If the current title is from an out-of-state jurisdiction, the donor should consult with a county motor vehicle office regarding title conversion requirements. A vehicle with a lien recorded against it cannot be gifted until the lienholder releases the lien or the lien is properly transferred through the titling process.
License Plates
The donor who removes the plates from a vehicle should return regular plates to the nearest county motor vehicle office or take them to a recycling service that accepts metal. Personalized or vanity plates may be transferred to another vehicle owned by the same individual through the county motor vehicle office. The recipient does not receive the donor's plates; instead, new registration plates will be issued after the title and registration application are processed and approved.
Taxes and Fees
A bona fide gift is exempt from Colorado's sales and use tax law. To qualify for this exemption, the transfer documents must clearly indicate that the vehicle is being transferred as a gift with no consideration. The recipient will not owe sales tax on the vehicle; however, the recipient remains responsible for specific ownership taxes, registration fees, and other applicable administrative charges assessed upon registering the vehicle with a Colorado county motor vehicle office. Specific ownership taxes are calculated based on the vehicle's original taxable value and model year, regardless of whether the transfer is a gift or sale. County motor vehicle offices may assess additional local issuance fees that vary by jurisdiction.
Step-By-Step Process To Gift a Car in Colorado
Step 1: Confirm Vehicle Title Status
The recipient should verify that the vehicle is subject to Colorado title law. Most vehicles operated on public highways require a certificate of title. If the vehicle was previously titled in Colorado, the current title should be obtained. If titled in another state, the donor should consult the county motor vehicle office to understand the requirements for converting the out-of-state title. Vehicles from non-title jurisdictions or vehicles exempt from titling may be registered under alternative ownership documentation.
Step 2: Complete the Certificate of Title Assignment
The donor must sign the back of the Colorado certificate of title or the appropriate transfer document. The signature must match the name as it appears on the front of the title. The recipient's legal name and address must be entered in the buyer or transferee section of the title. If more than one owner is listed on the title, all owners must sign unless the title shows ownership held in joint tenancy with rights of survivorship, in which case either owner may sign. The donor should retain a copy of all signed documents for records.
Step 3: Disclose Odometer Reading
When odometer disclosure is required, the donor must record the vehicle's exact mileage reading on the title assignment section or provide the information using the Form DR 2445 Statement of Transfer. The odometer reading must reflect actual mileage at the time of transfer. If the vehicle does not have a functioning odometer, the donor should mark the appropriate indicator on the transfer form.
Step 4: Prepare Transfer Documentation
The recipient should prepare a bill of sale or gift affidavit documenting that the vehicle is being transferred as a gift with no monetary exchange. The bill of sale should include the vehicle's year, make, model, and vehicle identification number (VIN), the date of transfer, both the donor's and recipient's names and signatures, and a notation that the purchase price is zero or "Gift." This document serves as supporting evidence for sales tax exemption purposes.
Step 5: Obtain Proof of Insurance
Before registration can be completed, the recipient must obtain Colorado motor vehicle liability insurance meeting the state's minimum requirements. Proof of insurance must include the insurance company name, policy number, effective and expiration dates, and the vehicle's VIN. The recipient may present a valid insurance card, policy declaration page, insurance binder, or letter from the insurer on company letterhead.
Step 6: Submit Application at County Motor Vehicle Office
The recipient must take the completed title assignment, bill of sale, or gift documentation, proof of insurance, and Secure and Verifiable Identification (Form DR 2841) to the county motor vehicle office in the county where the recipient resides or where the vehicle will be registered. The Application for Title and/or Registration (Form DR 2395) must be completed with the recipient's information and vehicle details.
Step 7: Complete Registration Within 60 Days
The recipient must register the vehicle within 60 calendar days after acquiring it. Registration is required, whether the vehicle will be operated on public roadways or not. If registration is not completed within 60 days, late fees will be assessed starting on day 61 at a rate of $25 per month, or a portion of a month, for motor vehicles, up to a maximum of $100 per instance.
Documents Needed for Gifting a Car in Colorado
| Document | Purpose | Requirement |
|---|---|---|
| Colorado Certificate of Title | Proof of ownership; allows transfer through assignment section | Current title must be signed by all owners |
| Bill of Sale or Gift Affidavit | Establishes vehicle transfer as gift; supports sales tax exemption | Must indicate "Gift" with zero purchase price; includes VIN, date, and both signatures |
| Form DR 2395 (Application for Title/Registration) | Official application for title and registration | Completed with recipient's information |
| Form DR 2445 (Statement of Transfer) | Assigns odometer reading at time of transfer | Required if vehicle is less than 10 years old |
| Secure and Verifiable Identification (DR 2841) | Verifies recipient's identity | Valid driver's license, passport, or other approved ID |
| Proof of Insurance | Demonstrates liability coverage before registration | Valid insurance card, policy declaration, or insurer letter |
| Vehicle Identification Number (VIN) Documentation | Verifies vehicle identity | Copy of title, registration, or manufacturing document |
Applicable Fees and Taxes When Gifting a Car in Colorado
When a vehicle is transferred as a bona fide gift without consideration, Colorado imposes no sales tax on the transfer. However, the recipient remains responsible for the following:
Specific Ownership Taxes (SOT): These taxes are assessed based on the vehicle's original taxable value and model year. Tax Class A vehicles are assessed at the following rates: 2.10% in the first year, 1.50% in the second year, 1.20% in the third year, 0.90% in the fourth year, 0.45% per year for the fifth through ninth years (or $10.00, whichever is greater), and $3.00 per year for vehicles ten years old or older. Specific ownership tax is separate from the title and registration process but are collected at the time of registration. The exact amount will vary based on the vehicle classification.
Registration Base Fee: Colorado charges a registration base fee determined by the vehicle's empty weight, ranging from approximately $6.50 for light vehicles to higher amounts for heavier vehicles, pursuant to CRS 42-3-306.
Clerk Hire Fee: All vehicle registration transactions include a $4 clerk hire fee distributed to the county clerk and recorder.
Age-Based Vehicle Fee: A fee of $9.00 is assessed for vehicles less than seven years old, $7.00 for vehicles seven to nine years old, and $5.00 for vehicles ten years or older.
Emissions Area Fees: If the recipient resides in an emissions program area, additional fees of $1.50 or $0.70 may apply to support emissions testing and enforcement.
Local County Issuance Fees: Individual counties may assess additional issuance fees at the time of registration. The recipient should contact the county motor vehicle office to learn about any county-specific fees.
Emergency Medical Services Fee: A $2.00 fee is assessed to all motor vehicles except trailers.
County motor vehicle offices provide itemized registration receipts showing all fees charged. Payment methods accepted vary by county but typically include cash, check, and credit card; some counties add a processing fee for credit card transactions.
Contact Information
Colorado Department of Revenue Division of Motor Vehicles
1351 5th Street, Suite 100, Denver, Colorado 80204
Phone: (303) 205-5608
Official Website: Colorado Department of Revenue Division of Motor Vehicles
