How to Gift a Car in Illinois in 2026

Gifting a vehicle in Illinois constitutes a transfer of ownership from one person to another without consideration. The gift process follows the same title and registration requirements as other ownership transfers, utilizing Illinois' electronic and mail-based application systems administered by the Secretary of State. Under 625 ILCS 5/3-101, most motor vehicles in Illinois must be issued a certificate of title before ownership transfer and registration can be completed.

How Does Gifting a Car in Illinois Work?

In Illinois, a vehicle gift is processed through the state's centralized title and registration system. The donor and recipient work together to transfer ownership by submitting a completed Application for Vehicle Transaction(s) (VSD 190) along with the existing title, required tax documentation, and applicable fees. The application can be submitted by mail or in person at any Secretary of State Vehicle Services facility.

Illinois law mandates that the recipient obtain liability insurance meeting state minimum requirements and complete registration within specific timeframes before the vehicle can be legally driven. The process culminates when the Secretary of State issues a new certificate of title in the recipient's name, and plates are issued or transferred.

Illinois Car Gifting Rules You Should Know

A vehicle gift begins with determining whether the vehicle is subject to Illinois title law. Most vehicles in the state must be titled; however, certain categories of vehicles may be handled differently or may be exempt from titling requirements altogether.

Title Status

Under 625 ILCS 5/3-101, every owner of a vehicle in Illinois for which no Illinois certificate of title has been issued must apply to the Secretary of State for a title. This requirement applies to cars, vans, motorcycles purchased after January 1, 1980, all-terrain vehicles purchased after January 1, 1998, and low-speed vehicles manufactured after January 1, 2010.

The donor's name on the title must match exactly with the name on the current certificate of title. Any discrepancy between the title face and the application can delay processing. Similarly, the recipient's name on the title assignment must be entered consistently on all transfer and application documents.

When multiple owners appear on a title joined by "or," either owner may sign the title assignment. If joined by "and," both owners must sign the assignment, and both may need to sign related documents.

License Plates

Illinois license plates belong to the owner, not the vehicle. When ownership changes, the donor must remove the existing plates. If the recipient intends to transfer the existing plates to another vehicle owned by the recipient, a transfer fee of $25 applies, plus any additional commission and local fees assessed by the Secretary of State facility processing the transfer.

If the recipient does not transfer existing plates, new plates will be issued along with the new registration. The Application for Vehicle Transaction(s) (VSD 190) must clearly indicate whether the transaction involves a transfer of existing plates or the issuance of new plates.

Taxes and Fees

A true gift is not treated as a taxable sale under Illinois tax law; however, several state and local fees, taxes, and charges may still apply when the recipient places the vehicle into service and applies for title and registration.

The state title application fee for a motor vehicle is $165. An additional registration fee of $151 applies to standard passenger vehicles. These represent state charges only; additional local fees may apply depending on the recipient's location.

For vehicles subject to the Private Party Vehicle Use Tax, the tax amount depends on the vehicle's age if the fair market value is below $15,000, or on the fair market value if it is $15,000 or more. For most gifts, the vehicle is assigned a fair market value. Certain family transfers—those between spouses, parents, children (including adopted children), siblings, or civil union parties—qualify for a reduced use tax rate of $15, provided the vehicle is 14 years old or newer. Some municipalities and counties, including Chicago and Cook County, impose additional local use taxes based on vehicle age.

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

Step 1: Obtain the Current Title

The donor must provide the existing certificate of title to the recipient. If the title has been lost, a duplicate title must be obtained from the Secretary of State by filing an Application for Vehicle Transaction(s) (VSD 190) and paying the appropriate fee before the gift transfer can proceed.

Step 2: Complete the Odometer Disclosure Statement If Required

For vehicles subject to odometer disclosure requirements, the donor must certify the odometer reading on the back of the title or on a separate Odometer Disclosure Statement (VSD 333). Under 625 ILCS 5/3-112.1, vehicles model year 2011 or newer are subject to odometer disclosure for 20 years from the model year. The donor must indicate whether the mileage represents actual mileage, exceeds mechanical limits, or constitutes a discrepancy. Both the donor and recipient must sign the odometer certification area of the title.

Step 3: Assign the Title to the Recipient

The donor must sign the title exactly as it appears on the front of the certificate. The donor then writes the recipient's name and address in the assignment section of the back of the title. The donor's signature must match the name on the face of the title. If multiple owners appear on the title, follow the signing requirements for co-ownership: if joined by "or," only one owner needs to sign; if joined by "and," both must sign.

Step 4: Complete Tax Form RUT-50

The recipient must complete Form RUT-50 (Private Party Vehicle Use Tax Transaction) and determine the applicable use tax based on the vehicle's age or fair market value. If the gift qualifies for a family exception (transfer between spouses, parents, children, siblings, or civil union parties), the use tax is $15 for vehicles 14 years old or newer. Otherwise, tax is calculated using the state's use tax tables. The form must be submitted with a separate check payable to the Illinois Department of Revenue. Form RUT-50 is due within 30 days of the date the recipient acquires the vehicle if acquired in Illinois, or within 30 days of bringing the vehicle into Illinois if acquired outside the state.

Step 5: Complete the Application for Vehicle Transaction(s) (VSD 190)

The recipient completes the Application for Vehicle Transaction(s) (VSD 190), available online through the Electronic Registration and Title (ERT) System or by requesting it from a Secretary of State facility. The application must include vehicle identification details, the recipient's name and address (matching the title assignment), an indication of whether plates are being transferred or new plates are being issued, and any additional transaction details.

Step 6: Gather Insurance Documentation and Submit Application

Before registration can be completed, the recipient must provide proof of liability insurance meeting Illinois minimum requirements of $25,000 per person and $50,000 per accident for bodily injury liability, and $20,000 for property damage liability (as mandated by 625 ILCS 5/7-601). The recipient then submits the application, existing title, Form RUT-50 with tax payment, and the title fee of $165 to the Secretary of State by mail or at a Vehicle Services facility. A registration fee of $151 for standard passenger vehicles must be submitted at the same time with a separate check payable to the Illinois Secretary of State.

If submitting by mail, documents should be sent to:

Secretary of State Vehicle Services Department 501 S. 2nd. St., Room 014 Springfield, IL 62756

Applications received before noon on a business day will be processed and shipped the same day; applications received after noon will be processed and shipped the next business day. An additional $30 fee applies for expedited service.

Step 7: Receive New Title and Plates

Once the Secretary of State processes the application, a new certificate of title will be issued in the recipient's name, and registration plates will be mailed to the recipient's address on file. The recipient may not operate the vehicle on public roads until the plates are received and displayed.

Documents Needed for Gifting a Car in Illinois

The documents required to complete a vehicle gift transfer in Illinois typically include the following:

• The current certificate of title properly assigned from the donor to the recipient
• The Application for Vehicle Transaction(s) (VSD 190), completed and signed by the recipient
• Form RUT-50 (Private Party Vehicle Use Tax Transaction) completed with the calculated use tax amount, or proof of a determination that no tax is owed
• A separate check or money order payable to the Illinois Department of Revenue for any use tax owed under Form RUT-50
• A separate check or money order payable to the Illinois Secretary of State for the title fee ($165) and registration fee (varies by vehicle type, typically $151 for passenger vehicles)
• Odometer Disclosure Statement (VSD 333) or odometer certification on the back of the title if the vehicle is subject to odometer disclosure requirements (generally vehicles model year 2011 or newer)
• Proof of liability insurance covering the vehicle for the recipient, meeting Illinois minimum requirements ($25,000 per person / $50,000 per accident bodily injury; $20,000 property damage)
• Copy of the recipient's driver's license or identification
• If a family relationship exists that qualifies for reduced use tax, supporting documentation may be requested to verify the relationship

For vehicles purchased from an out-of-state jurisdiction, the recipient may need to provide additional proof of ownership or registration records from that jurisdiction to support the title application.

Applicable Fees and Taxes When Gifting a Car in Illinois

When a recipient registers a gifted vehicle in Illinois, several fees and taxes accrue. The state title application fee is $165 for a motor vehicle. The registration fee depends on the vehicle type; for a standard passenger vehicle, the annual registration fee is $151. If the recipient transfers existing plates owned by the recipient to the gifted vehicle, a $25 plate transfer fee applies.

The recipient must pay Private Party Vehicle Use Tax calculated according to Form RUT-50 instructions. If the vehicle's fair market value is less than $15,000, tax is determined by the vehicle's age, ranging from $465 for vehicles one year old or newer to $100 for vehicles eleven years old or older. If the vehicle's fair market value is $15,000 or more, the tax ranges from $850 to $10,100, depending on the vehicle's stated value.

A family transfer exception allows a reduced use tax of $15 for vehicles transferred between spouses, parents, children (including adopted children), siblings, or civil union parties, provided the vehicle is 14 years old or newer. This exception requires the relationship to be documented on Form RUT-50.

Additional local government taxes may apply based on the recipient's address. Chicago imposes an additional municipal use tax based on vehicle age, and Cook County imposes a county use tax. See RUT-6, Form RUT-50 Reference Guide for current local rates by municipality and county.

Because a true gift does not constitute a sale, no Illinois sales tax applies to the transfer. However, if any consideration is exchanged, the transaction should not be presented as a gift and may be subject to sales tax or different use tax treatment.

When the recipient registers the vehicle and places it into service, insurance costs must also be maintained; Illinois law requires all operating vehicles to carry minimum liability insurance of $25,000 per person and $50,000 per accident for bodily injury liability, and $20,000 for property damage liability.

Contact Information

Illinois Secretary of State - Vehicle Services Department
Springfield, IL 62756
Phone: (800) 252-8980
Official Website: Illinois Secretary of State - Titles and Registration