How to Transfer a Car to a Family Member in California
Parents, children, spouses, grandparents and grandchildren can transfer a car with no use tax and no smog check — if you file the one form that claims it. Here’s the whole process, the two deadlines, and the sibling rule that trips families up.
TL;DR
- One form runs everything: REG 256 (Statement of Facts) claims both the use-tax exemption and the smog exemption.
- Use tax is $0 between a parent, child, grandparent, grandchild, spouse or domestic partner — even if money changes hands. Adult siblings are NOT exempt (both-minors only).
- No smog check for transfers between a parent, grandparent, child, grandchild, sibling, spouse or domestic partner — unless the car’s biennial smog is due.
- A genuine gift from anyone skips use tax, but only listed family skips the smog check.
- Two deadlines: the giver files the REG 138 release within 5 days; the recipient files the transfer within 10 days.
- Total cost for most families: the $15 transfer fee — plus an $8 smog transfer fee on cars 4 or fewer model years old.
Last verified against dmv.ca.gov: October 20, 2026
Who Counts as “Family”? The Two Lists Are Different
Here is the fact that decides what your transfer costs — and the one families get wrong most often. California uses two different definitions of “family” for the same transfer. The use-tax exemption (REG 256, Section A) covers one list of relatives; the smog exemption (REG 256, Section B) covers a slightly wider list. Everything else on this page follows from this table:
| Relationship | No use tax? | No smog check? |
|---|---|---|
| Parent / child | Exempt | Exempt |
| Grandparent / grandchild | Exempt | Exempt |
| Spouse | Exempt | Exempt |
| Registered domestic partner | Exempt | Exempt |
| Brother / sister (both minors) | Exempt | Exempt |
| Brother / sister (adults) | Tax due | Exempt |
| Step-parent / stepchild | Tax due | Smog required |
| In-laws, aunts, uncles, cousins | Tax due | Smog required |
| Anyone — genuine gift | Exempt (gift) | Smog required |
The tax exemption also covers sales, not just gifts — REG 256 Section A literally reads “family transfer sold between” the listed relatives, so a son who pays his mother for her car still owes no use tax. Two limits apply: the seller can’t be in the business of selling that type of vehicle (a dealer selling to his own child gets no exemption), and you may need documents proving the relationship, such as a birth certificate, marriage license or adoption paperwork. Step-relations don’t qualify on their own, though a purchase made jointly by a natural parent and a step-parent, registered to both, can be exempt through the natural parent.
What It Costs
For a qualifying family transfer, the DMV bill is small. The expensive line only appears when the transfer doesn’t qualify for the tax exemption:
| Item | Cost |
|---|---|
| Title transfer fee | $15 |
| Smog transfer fee (cars 4 or fewer model years old — exempt from the test by age) | $8 |
| Use tax — qualifying family transfer or genuine gift | $0 |
| Use tax — non-qualifying transfer | Local rate (7.25%+) on the price or fair market value |
| Registration renewal (only if due or expired at transfer time) | Normal renewal fees, plus any late penalties |
A worked example: a $15,000 car transferred from a parent to an adult child costs $15 total at the DMV. The same car sold by one adult brother to another costs $15 plus use tax on $15,000 — about $1,088 at the 7.25% minimum rate, and more in districts with higher rates. Before you file, run your plate or VIN through DMV’s free online fee calculator for the exact figure, and see our full breakdown of California DMV fees.
Step by Step: The Family Transfer
How to Fill Out REG 256
REG 256 (Statement of Facts) is a single form that does three jobs on this page. Fill it out in this order:
Header. The vehicle’s license plate number, VIN, year and make, plus the registered owner’s name — copied exactly from the title.
Section A — use tax. Check the family-transfer box and write the relationship (“mother to son,” “spouses”), or check the gift box if the car is a genuine gift from anyone. Family sales go in this section too — the exemption is not limited to gifts.
Section B — smog. Check the family-transfer line if the relationship is on the smog list (parent, grandparent, child, grandchild, brother, sister, spouse or domestic partner). Note the form’s own footnote: the exemption doesn’t waive a biennial smog that is separately due.
Market value. State the car’s value where asked — for non-exempt transfers the use tax is figured from it, so don’t understate it.
Section H — signature. The recipient signs and dates. The full form is on dmv.ca.gov (PDF).
Gift vs. Selling It to Them for $1
Families often ask whether they should “sell” the car for $1 or call it a gift. If the relationship is on the use-tax list, it doesn’t matter: a real sale between a parent and child is already exempt, so there’s no reason to dress it up as a gift.
If the relationship is not on the list, the wording matters a lot. A genuine gift — nothing given in return — is use-tax exempt from anyone. A “$1 sale” is not a gift: paying anything, trading a vehicle or property, providing services, or taking over the giver’s loan payments all count as payment, and a price that’s understated gets taxed on the car’s fair market value instead. Write “GIFT” on the title only when it truly is one.
When the Transfer Gets Stuck
There’s still a loan on the car. A gifted vehicle cannot have an outstanding loan — the lienholder is the legal owner and holds the title until the loan is satisfied. Pay the loan off and get the lien released (Lien Satisfied, REG 166, or the lienholder’s signature on the title), then transfer — or have the recipient refinance through the lender in their own name.
Unpaid parking or toll tickets. This one surprises everyone: a family transfer cannot be completed while unpaid parking or toll violations are on the vehicle’s record (DMV Registration Procedures Manual §11.130). The tickets must be cleared by the issuing agency or paid to DMV first. In an ordinary sale to a stranger the old tickets are wiped from the record at transfer — family and trust transfers are the exception.
The title isn’t in the giver’s name. If Dad bought the car intending to hand it over but never titled it in his own name first, the family smog exemption does not apply and a smog inspection is required — and the ownership chain is broken. The giver should complete their own transfer into their name first.
The title is lost. The registered owner applies for a replacement with REG 227 before the transfer can proceed — see our California duplicate title guide.
The registration is expired, or a biennial smog is due. The transfer doesn’t erase either one: renewal fees and late penalties are collected to complete the transfer, and a due biennial smog still has to be passed. Our title transfer guide covers the general process for every kind of transfer.
Giving a Car to Your Teen
A licensed 16- or 17-year-old can hold a California car title — there’s no rule against a minor owning the car itself. The limit is Vehicle Code §15500: it is unlawful for a minor who does not hold a valid California driver license to buy, lease, accept or otherwise obtain a vehicle that requires registration. So a teen with only an instruction permit can’t take the car — the title stays in a parent’s name until they’re licensed, then transfers with both exemptions (parent and child are on both lists). One practical note: insurers generally won’t sell a standalone policy to a minor, so the car usually goes on the parents’ policy.
After Someone Passes Away
Transfers after a death follow a different track: REG 256 also has Court Order and Inheritance categories, and heirs commonly use REG 5 (Affidavit for Transfer Without Probate) to move a vehicle out of a deceased owner’s name. The process, documents and timelines differ from a living family transfer, so treat it as its own procedure rather than a variation of this one.
For the full death-transfer procedure — TOD beneficiary claims with REG 256 (not REG 5), the 40-day affidavit wait, the three clocks, and why Letters transfers owe use tax or a CDTFA 111 — see Transferring a Car Title After Death in California. Note in particular that no single dollar estate ceiling is printed there, because the ceiling is set by the date of death: check the current REG 5 form and the Judicial Council list before you file.
Plates, Insurance and After the Transfer
Regular license plates stay with the vehicle in a transfer. Special-interest and personalized plates are different: they belong to the plate owner, who can keep them, reassign them to another vehicle, or release them — see our guide to California personalized plates. For spouses, plates may remain with the vehicle when the relationship is declared on REG 256.
Keep copies of everything: the signed title, the REG 256, and any documents proving the relationship (birth or marriage certificate, adoption paperwork). The tax authorities can ask for the relationship documentation behind an exemption, so file the packet somewhere safe. Once the recipient’s insurance is on file and the new title arrives by mail, the transfer is complete.
Frequently Asked Questions
Who counts as a family member for a California DMV family transfer?
It depends on the exemption. For use tax: a parent, child, grandparent, grandchild, spouse or registered domestic partner — siblings only if both are minors related by blood or adoption. For the smog exemption, adult brothers and sisters count too. Step-parents, stepchildren, in-laws, aunts, uncles and cousins are on neither list.
My dad is selling me his car (I’m paying him). Do I still owe use tax?
No. The family exemption covers transfers sold between qualifying relatives, not only gifts — that’s the wording on REG 256 Section A itself. File the REG 256 showing the relationship and the $15 transfer fee is the main cost. One exception: if your dad is in the business of selling cars, the exemption can’t be claimed.
My brother is giving me his car. Are we exempt?
From the smog check, yes — siblings are on the smog list. For use tax it depends on how the transfer happens: if he sells it to you, the family exemption doesn’t cover adult siblings (both-minors only), so use tax is due on the car’s fair market value. If it’s a genuine gift — nothing paid, traded or owed in return — the gift exemption covers the use tax instead.
A friend is giving me a car for free. Do I pay tax or need a smog check?
Use tax: no — a genuine gift is exempt whoever gives it, as long as nothing is given in return (no cash, trade, services, or taking over their loan payments). Claim it as a “Gift” on REG 256 and write GIFT on the title. Smog: yes, a smog certificate is required, because the smog exemption only covers the listed family relationships.
Do I need a smog check to transfer a car to my son or daughter?
No — parent/child transfers are exempt from the transfer smog certification; claim it in REG 256 Section B. Two exceptions: if the car’s regular biennial smog is due, that still has to be done, and if you bought the car for them but never titled it in your own name first, the exemption doesn’t apply and a smog inspection is required.
How much does a family title transfer cost in California?
For most families: the $15 transfer fee — plus an $8 smog transfer fee if the car is four model years old or newer (it’s exempt from the test by age). Use tax is $0 when the transfer qualifies. If registration renewal is due at the same time, those fees (and any late penalties) are added. DMV’s online fee calculator gives your exact figure.
How long do we have to complete the transfer?
Two clocks: the person receiving the car must file the transfer with DMV within 10 days, and the person giving it must file the Notice of Transfer and Release of Liability (REG 138) within 5 days — that release is what stops the giver being billed for the car’s tickets. The REG 138 can be filed online; the transfer itself goes to a DMV office or by mail.
Can I transfer a car to a family member if it still has a loan on it?
Not directly. A gifted vehicle cannot have an outstanding loan: the lienholder holds the title until the loan is satisfied. Pay the loan off and get the lien released (Lien Satisfied, REG 166, or the lienholder’s signature on the title), then transfer — or have the recipient refinance through the lender. Quietly “taking over the payments” also means the transfer no longer counts as a gift for use tax.
Can I put a car in my 16-year-old’s name?
Yes — if they hold a valid California driver license. Vehicle Code §15500 makes it unlawful for an unlicensed minor to buy, lease, accept, or otherwise obtain a vehicle that requires registration, so a teen with only an instruction permit can’t take title; the car stays in a parent’s name until they’re licensed. Parent-to-child transfers qualify for both exemptions either way. Practical note: the car will normally need to sit on a parent’s insurance policy.
The car’s registration is expired and it has an old parking ticket. Can we still transfer it within the family?
The back fees have to be settled: expired registration means renewal fees and penalties are due to complete the transfer, and DMV procedures state a family transfer cannot be completed while unpaid parking or toll violations are on the vehicle’s record — they must be cleared with the issuing agency or paid to DMV first.
Is there a gift tax on giving a car to my child in California?
California has no state gift tax. Federally, the IRS treats the car as a gift at its fair market value: for 2026, gifts up to $19,000 per recipient fall under the annual exclusion; above that, the giver files Form 709 to report it — filing is reporting, and the excess counts against the lifetime exemption ($15 million in 2026), so tax is almost never actually owed on a family car.
What if the title is lost, or my name isn’t on it?
If the Certificate of Title is lost, the registered owner uses REG 227 (Application for Replacement or Transfer of Title) — that’s covered in our duplicate title guide. If the car was never titled in the giver’s name, they should complete that transfer first: handing over a car that isn’t titled to you breaks the family smog exemption and leaves a broken ownership chain.
Related Guides
Ready to Transfer the Title?
Most family transfers are finished at a DMV office or by mail. If you need an office visit, book it on the official DMV website — or call the automated line any time at 1-800-777-0133.
Book on dmv.ca.gov →Last verified against dmv.ca.gov: October 20, 2026. Requirements change — confirm current rules with the DMV before your visit.