Gifting a Car in Texas vs a Houston Cash Sale: TxDMV Checklist

The short answer

A Houston cash sale and a Texas gift transfer are different paperwork paths. TxDMV’s Buying or Selling a Vehicle page describes gifting a vehicle to a relative or qualifying 501(c)(3): you still need a signed negotiable title and a completed Application for Texas Title and/or Registration (Form 130-U), plus the Texas Comptroller’s Affidavit of Motor Vehicle Gift Transfer (Form 14-317). Both donor and recipient must sign the affidavit and title application, and either the donor or recipient must submit everything in person at the county tax office. A $10 gift tax applies when the recipient is a spouse, parent or stepparent, grandparent or grandchild, child or stepchild, sibling, guardian, a decedent’s estate, or a non-profit 501(c)(3). If the car is going to a buyer for money instead, treat it as a sale—not a gift.

What TxDMV lists for gift transfers (opened for this article)

From the opened TxDMV buying-or-selling guidance under Gifting a Vehicle:

• Provide the signed negotiable title and completed Form 130-U.
• Attach Comptroller Form 14-317 (Affidavit of Motor Vehicle Gift Transfer).
• Donor and recipient both sign the affidavit and the title application.
• Either donor or recipient must appear in person at the county tax office with the package.
• The $10 gift tax applies only to the qualifying relationships / 501(c)(3) list above.

For ordinary sales, the same TxDMV page still expects the seller to give the buyer a properly signed title (date of sale and odometer) and a signed 130-U with the sales price shown, and it recommends sellers keep written records (buyer contact info, date, VIN). Vehicles should be titled in the buyer’s name within 30 days of the sale date.

Cash sale vs gift: pick the path that matches reality

Sell Me Your Car Houston buys cars for cash in greater Houston—running or not—and can help with paperwork and pickup. Offers are no-obligation. A gift affidavit is the wrong tool if money is changing hands between unrelated parties. Use the gift path only when the transfer truly fits TxDMV’s gift rules.

Practical split:

• Selling to a cash buyer / dealer / us: sale documents + payment—not Form 14-317.
• Transferring to a qualifying relative / 501(c)(3) with no sale price: gift package (title + 130-U + 14-317) + $10 gift tax as TxDMV describes.
• Still owe a lien: clear the lien / payoff first—gift or sale both stall without it.

If you already started a weekend plate-removal sale, remember transit-permit rules from our weekend Vehicle Transit Permit post. Title and odometer basics are in our 130-U checklist.

A short Houston checklist

1. Decide honestly: gift or sale. Do not label a paid transfer as a gift.
2. For gifts, download current 14-317 and 130-U forms before you go to the tax office.
3. Bring photo ID and plan an in-person filing (donor or recipient).
4. For cash sales, get the offer in writing, confirm payoff if you owe, and keep buyer/VIN records.
5. After any transfer, follow TxDMV guidance on liability protection (including Vehicle Transfer Notification when it applies).

What this post is not promising

• We do not prepare gift affidavits as a law firm or guarantee county acceptance of a package.
• Gift tax rules and eligible relationships come from TxDMV’s published guidance—confirm at the tax office if your fact pattern is unusual.
• A cash offer is no-obligation and not a guaranteed price before inspection/appraisal of the vehicle’s condition.
• This is educational TxDMV process context, not tax advice.

Bottom line

TxDMV’s gift transfer is a specific affidavit-and-in-person path with a $10 gift tax for qualifying recipients. A Houston cash sale is a different transaction—use sale paperwork when money changes hands, and only use the gift forms when the transfer truly qualifies.

Want a no-obligation cash offer conversation? Start here.