How To Transfer a Car Title to a Family Member in Colorado in 2026

The legal transfer of a vehicle title to a family member in Colorado is administered through a network of county motor vehicle offices operating under the authority of the Colorado Department of Revenue — Division of Motor Vehicles. The transaction may be structured as a gift (with no monetary exchange) or executed as a private-party sale at an agreed-upon purchase price, and each arrangement carries distinct sales and use tax consequences under state law.

What Does Transferring a Car Title to a Family Member in Colorado Mean?

Transferring a car title to a family member in Colorado means executing a state-recognized change of vehicle ownership through the official titling process administered by county motor vehicle offices acting on behalf of the Colorado Department of Revenue. The Colorado Certificate of Title is the controlling legal document that establishes a vehicle's registered owner. Until a new certificate is issued in the recipient's name following a complete and accepted title application, the original owner remains the owner of record under Colorado law.

Unlike states where title applications are processed at a centralized agency office, Colorado routes nearly all personal vehicle title transactions through county motor vehicle offices. The state's Division of Motor Vehicles retains direct jurisdiction only over dealer resale titles, low-powered scooters, and International Registration Plan (IRP) accounts. Title applications processed at the county level are forwarded to the state's DRIVES (Digital Integrated Records and Vehicle Efficiency System) database.

The tax treatment of a title transfer varies depending on the nature of the transaction. Applications citing a gift are subject to separate rules from those citing a stated purchase price, and the applicable authority governing the sales and use tax obligations on motor vehicles is found in the Colorado Department of Revenue's Sales and Use Tax guidance on motor vehicles, issued pursuant to C.R.S. Title 39, Article 26.

Eligible Family Members for Title Transfers in Colorado

Colorado does not enumerate in statute a closed list of family members who qualify for a blanket vehicle transfer tax exemption. Rather, the state's guidance on motor vehicle sales and use tax establishes that when a vehicle is transferred as a genuine gift — one made entirely without monetary consideration, assumption of debt, or other compensation — the recipient bears no liability for state sales or use tax on that transfer. This principle applies regardless of the relationship between the parties.

However, the applicability of this gift exemption to intra-family transfers is qualified by an important distinction: if the recipient assumes an outstanding lien on the transferred vehicle, that assumption of debt constitutes legal consideration, subjecting the entire transaction to sales and use tax on the value of the consideration given. In such cases, the taxable value is the outstanding lien balance plus any other consideration provided.

For a gift transfer to qualify as tax-exempt at the county motor vehicle office, the purchase price field on both the certificate of title and any accompanying bill of sale must state the word "Gift." Entering "$0," "$1," or "free" in place of the word "Gift" does not constitute a qualifying gift for tax purposes in Colorado.

The following family relationships are commonly recognized by county motor vehicle offices as qualifying for gift transfer treatment, consistent with guidance issued by the Colorado Department of Revenue:

• Spouse
• Parent and grandparent
• Child and grandchild
• Brother and sister

Transfers to extended relatives, in-laws, stepparents, or stepchildren are not automatically treated as qualifying gifts under Colorado's tax framework. Regardless of the family relationship, both parties must complete the standard county-level title transfer process.

How To Transfer a Car Title as a Gift to a Family Member in Colorado

When a vehicle is conveyed as a gift in Colorado with no monetary consideration and no lien on the title, the following process applies:

Step 1 — Verify the title is clear of liens. The transferring owner must confirm that no active lienholder is recorded on the Colorado Certificate of Title.

• If a lien exists and the recipient will assume that lien, the transaction is no longer a tax-exempt gift — the assumed debt is treated as consideration, and sales and use tax will be assessed by the county motor vehicle office at the time of registration.
• If the lien has been satisfied, the transferring owner must obtain a lien release from the lienholder. A completed DR 2539A — Duplicate Title/Lien Request and Receipt form, submitted together with the lien release letter from the lender, may be used to obtain a clean title before proceeding.

Step 2 — Endorse the certificate of title. The current owner must sign the title in the designated seller's signature area and complete all required fields on the reverse of the certificate:

• The recipient's full legal name and Colorado address in the buyer's section
• The word "Gift" entered as the purchase price — not "$0," "$1," or any monetary amount
• The current odometer reading
• The seller's dated signature

Step 3 — Prepare a Bill of Sale. Colorado requires a bill of sale for all vehicle transfers for sales tax documentation purposes. For a gift transfer, the bill of sale must:

• State the word "Gift" as the purchase price (not a dollar amount)
• Identify the vehicle by year, make, model, and Vehicle Identification Number (VIN)
• Include the full legal names and addresses of both parties
• Be dated and signed by the donor

Note: For vehicles that are ten model years old or newer, a notarized bill of sale is required for gift transfers.

Step 4 — Complete the Application for Title and/or Registration (DR 2395) The new owner must complete the DR 2395 form, which serves as the official application for a Colorado Certificate of Title and, optionally, registration. The form captures:

• Vehicle identification information (VIN, year, make, weight)
• New owner's name, address, and identification details
• Lienholder information, if applicable
• Joint tenancy designation, if more than one owner is taking title

Step 5 — Submit the application package to the county motor vehicle office. The new owner must bring the complete application to the county motor vehicle office in the county where the vehicle will be registered.

Step 6 — Receive the new title by mail and complete registration. After the county office processes the application and forwards it to the state system, the new Colorado Certificate of Title is mailed to the registered owner (or lienholder, if applicable). Allow four to six weeks for delivery. The new owner must also complete vehicle registration and obtain Colorado license plates; first-time registrations may be completed at the county office or initiated through myDMV.

How To Transfer a Car Title as a Sale to a Family Member in Colorado

When a family member purchases a vehicle at a stated price, the transfer is treated as a private party sale, and sales and use tax applies at the time of registration. The process is as follows:

Step 1 — Agree on a purchase price and endorse the certificate of title. The seller must complete all required fields on the reverse of the Colorado Certificate of Title:

• The buyer's full legal name and Colorado mailing address
• The agreed purchase price (the county motor vehicle office will collect sales and use tax on this amount)
• The date of sale
• The current odometer reading (required for vehicles under 20 model years old)
• The seller's dated signature in the seller's signature area

Step 2 — Prepare a Bill of Sale. A written bill of sale is required for all private-party vehicle sales in Colorado. The DR 2173 — Motor Vehicle Bill of Sale (a secure DMV form) may be used, or a separate written document meeting the following requirements is acceptable:

• Vehicle year, make, model, and VIN
• Full legal names and addresses of both buyer and seller
• Agreed purchase price
• Date of sale
• Signatures of both parties

Step 3 — Release any existing lien, if applicable. If a lienholder is recorded on the certificate of title, that lien must be fully released before or concurrent with the title transfer.

• The lienholder must provide a written lien release letter, or the title must bear evidence of lien satisfaction.
• A completed DR 2539A may be submitted to the county office to facilitate obtaining a title without the recorded lien.
• Lien filing fees apply if a new lien is to be recorded in the buyer's name (e.g., if the purchase is financed).

Step 4 — Complete the Application for Title and/or Registration (DR 2395) The purchasing family member must complete the DR 2395 form with the vehicle and ownership details, including the new owner's information and any lienholder to be recorded.

Step 5 — Submit the application package to the county motor vehicle office and pay all fees and taxes. The buyer must present the complete package to the county motor vehicle office in the county of registration.

Step 6 — Register the vehicle and obtain Colorado license plates. The buyer must complete vehicle registration in the new owner's name and, if no plates are being transferred, obtain new Colorado license plates. Registration must be completed within 60 days of the purchase date to avoid late fees of $25 per month (not to exceed $100), per C.R.S. § 42-3-103.

What Documents Are Needed To Transfer a Car Title to a Family Member in Colorado

The following documents are required for a title transfer between family members in Colorado, per Colorado DMV titling requirements and C.R.S. § 42-6-116.

Required for all transfers:

• Colorado Certificate of Title — The existing title, properly endorsed on the reverse by the seller, with all required fields completed. If the title is unavailable or has been lost, a DR 2539A — Duplicate Title/Lien Request and Receipt must be submitted to obtain a replacement before the transfer can proceed.
• Application for Title and/or Registration (DR 2395) — Completed by the new owner. Captures vehicle identification, ownership details, lienholder information (if applicable), and joint tenancy designation (if multiple owners are taking title).
• Secure and Verifiable Identification (SVID) — Government-issued photo identification meeting the requirements set out in DR 2841 is required for the new owner presenting the application.
• Odometer Disclosure — Required for vehicles under 20 model years old, per federal odometer disclosure rules administered by the National Highway Traffic Safety Administration (NHTSA). The odometer reading must be entered on the certificate of title or on the DR 2395.
• Proof of Insurance — Required when the vehicle is being registered concurrently with the title transfer.

Required for sale transfers only:

• Bill of Sale — A signed and dated bill of sale documenting the agreed purchase price, VIN, vehicle year and make, and full names and addresses of both buyer and seller. The DR 2173 — Motor Vehicle Bill of Sale (a secure DMV form) is available for this purpose. The bill of sale is required for sales tax assessment at the county motor vehicle office.

Required for gift transfers:

• Bill of Sale stating "Gift" — A bill of sale is required even for gift transfers, with the word "Gift" entered as the purchase price. For vehicles that are ten model years old or newer, the bill of sale must be notarized. Both the title and the bill of sale must state "Gift" — entries such as "$0," "$1," or "free" are not acceptable for gift treatment under Colorado's sales and use tax rules.

Additional documents that may be required:

• DR 2539A — Duplicate Title/Lien Request and Receipt — Required to obtain a replacement title when the original has been lost or when requesting removal of a satisfied lien from the title record.
• Lien Release Documentation — A written lien release letter from the lienholder, or a title bearing evidence of lien satisfaction, is required if a lien was previously recorded. Filing a new lien requires submission of the original security agreement at the county office; lien filing fees apply.
• Power of Attorney for a Motor Vehicle Only (DR 2175) — Required when an authorized representative signs on behalf of a titled owner. This form must be notarized to be accepted at the county motor vehicle office.
• Verification of Vehicle Identification Number (DR 2698) — Required for all vehicles being titled in Colorado for the first time with an out-of-state title. The VIN verification must be completed by a Colorado law enforcement agency, a licensed Colorado motor vehicle dealer, or a licensed Colorado emissions testing station.

How To Transfer a Car Title to a Family Member Online in Colorado

A standard title transfer between family members — involving an actual change of registered ownership — cannot be completed entirely online in Colorado. Per the Division of Motor Vehicles, county motor vehicle offices handle the in-person processing of all private-party title transfers. The new owner must appear in person at the county motor vehicle office in the county of registration to:

• Present the original endorsed Colorado Certificate of Title and all required original documents
• Submit the completed DR 2395 Application for Title and/or Registration
• Provide the bill of sale (notarized, if applicable) and Secure and Verifiable Identification
• Pay all applicable title fees, registration fees, Specific Ownership Tax, and sales and use tax
• Complete vehicle registration and, if needed, obtain new license plates

While drop boxes and mail-in submission options are available at certain county offices for specific transactions, the new owner's signature, identification, and payment obligations for an ownership-change title transfer generally require direct engagement with the county motor vehicle office.

What's the Cost To Transfer a Car Title to a Family Member in Colorado?

All title and registration fee schedules in Colorado are maintained by the Colorado Department of Revenue — Division of Motor Vehicles, with title fees collected at the county level.

Title Fees:

Registration Fee Components:

FASTER Surcharges (Road Safety and Bridge Safety, per C.R.S. §§ 43-4-804 and 43-4-805, established by Senate Bill 09-108):

Specific Ownership Tax (SOT): The SOT is assessed on all registered motor vehicles in Colorado in lieu of personal property tax, pursuant to C.R.S. § 42-3-107. It is calculated based on the vehicle's original taxable value (typically the original MSRP, established when the vehicle was new and fixed for the life of the vehicle) and the vehicle's year of service. The applicable rates are:

Sales and Use Tax (for sale transfers only):

When a vehicle is transferred through a private party sale, Colorado sales and use tax is assessed on the stated purchase price at the time of registration. All sales and use taxes on private party vehicle sales are collected by the county motor vehicle office at the time of registration — no portion is paid to the seller. The statewide base rate is 2.9%, per the Colorado Department of Revenue. County, city, and regional transportation district taxes are added to the state rate and vary by the buyer's registration address, bringing the combined total in many jurisdictions to between 4% and 9% or higher. The applicable rate is determined by the county of registration at the time of the transaction.

For gift transfers between qualifying family members in which the vehicle is conveyed without any monetary consideration and the recipient assumes no lien, no sales or use tax is due at registration. Both the certificate of title and the bill of sale must state the word "Gift" as the purchase price for this exemption to be recognized. If the recipient assumes an outstanding lien, the assumed debt constitutes consideration, and sales and use tax is assessed on the amount of the debt.

Contact Information

Colorado Department of Revenue — Division of Motor Vehicles
1351 5th St., Suite 100, Denver, CO 80204
Phone: (303) 205-5608
Official Website: Colorado Department of Revenue — Division of Motor Vehicles