How to Gift a Car in North Dakota in 2026
Transferring motor vehicle ownership as a gift in North Dakota follows the same procedures used for standard title and registration transfers. The donor and recipient must complete a title assignment, submit required documentation, and pay applicable fees. Upon acquisition, the recipient has 75 days to complete the title transfer and registration to operate the vehicle lawfully on state highways.
How Does Gifting a Car in North Dakota Work?
A motor vehicle gifted in North Dakota transfers upon completion of the back of the certificate of title by both the donor and the recipient, followed by the application for a new North Dakota certificate of title and registration. The Assignment and Warranty of Title (SFN 2877) form documents the transfer, and the recipient submits an Application for Certificate of Title and Registration (SFN 2872) to a local Motor Vehicle Division office. The form must be completed within 30 days of the transfer date, as required by the state.
Following the acquisition, the recipient may obtain a temporary registration permit valid for 75 days to operate the vehicle while the permanent title and registration are being processed. Once the new title is issued, the recipient receives vehicle registration plates and a registration card.
North Dakota Car Gifting Rules You Should Know
Title Status
Motor vehicles intended for operation on North Dakota public highways must be titled and registered under GS 39-04-02. The state issues a certificate of title as evidence of ownership. Most vehicles subject to registration include passenger cars, trucks, motorcycles, motor homes, travel trailers, and other motorized vehicles. Certain categories of vehicles are exempt from title and registration requirements, including farm equipment operated for agricultural purposes, vehicles owned by federal or state government agencies, and specific special-use vehicles as defined in the administrative code.
License Plates
When ownership transfers, the donor's existing license plates remain the property of the state and revert to the Motor Vehicle Division. The recipient must apply for new license plates, which will be issued upon completion of the title transfer and registration process. If the donor wishes to retain the license plate for use on another vehicle, the plate may be transferred to a different vehicle registered by the donor at the Motor Vehicle Division upon payment of applicable fees.
Taxes and Fees
North Dakota imposes a 5% motor vehicle excise tax on the taxable purchase price of all vehicles registered for operation on public roads. The tax is collected by the Motor Vehicle Division and deposited into the state highway fund. The taxable purchase price includes the vehicle's selling price and any charges for accessories, dealer preparation, freight, and delivery, less qualified discounts such as manufacturer rebates or trade-in allowances.
Gifts between spouses, parents and children, grandparents and grandchildren, or siblings are exempt from the motor vehicle excise tax if properly documented. Vehicles transferred by inheritance, bequest, or trust are also exempt from the excise tax. The Motor Vehicle Division requires proper documentation to claim the exemption.
Beyond the excise tax, the recipient must pay a certificate of title fee of $5, an abandoned motor vehicle disposal fee of $1.50 upon initial title application, and applicable registration fees based on vehicle type and gross weight. For vehicles weighing 20,000 pounds or less, registration fees are determined by the passenger fee schedule and vary by the year the vehicle was first registered.
Step-By-Step Process To Gift a Car in North Dakota
Step 1: Obtain and complete the Assignment and Warranty of Title form.
The donor should obtain the Assignment and Warranty of Title (SFN 2877) form from the Motor Vehicle Division or its website. Both the donor and recipient must complete the required fields, including vehicle details, buyer information, seller information, and the transfer date. The donor must also indicate the selling price. The form must be delivered to the recipient within 30 days of the sale date.
Step 2: Verify liability insurance coverage.
Before applying for title and registration, the recipient must obtain liability insurance coverage from an authorized insurance company. North Dakota requires all registered motor vehicles to be covered by liability insurance with minimum coverage limits. The insurance policy must be in force before registration can be completed.
Step 3: Complete the Application for Certificate of Title and Registration.
The recipient must complete the Application for Certificate of Title and Registration of a Vehicle (SFN 2872) form using a legal name matching the recipient's driver's license or state identification card. For vehicles less than 10 years old, the current odometer reading must be provided. The application must be signed by the recipient and submitted within 30 days of the transfer.
Step 4: Gather and submit required documentation.
Compile the signed certificate of title, the completed SFN 2877 form, the completed SFN 2872 application, proof of liability insurance, a valid driver's license or state identification, and any other documents required by the Motor Vehicle Division. If the recipient will claim a tax exemption, such as for a family gift, supporting documentation verifying the relationship must be included.
Step 5: Submit application to the Motor Vehicle Division.
Visit a local Motor Vehicle Division office in person or mail the completed application along with the signed title, supporting documentation, and applicable fees to the central Motor Vehicle Division office in Bismarck. Applicants may schedule an appointment by calling toll-free 1-855-633-6835 or using the online appointment scheduler.
Step 6: Pay applicable fees and taxes.
The Motor Vehicle Division will calculate and collect the $5 certificate of title fee, the $1.50 abandoned motor vehicle disposal fee, the 5% motor vehicle excise tax (unless exempt), and the applicable registration fees based on vehicle type and weight. Payment may be made by cash, check, or credit/debit card. Online payments are also accepted.
Step 7: Receive the new title and registration.
Once all documents are received and fees are paid, the Motor Vehicle Division will issue a new North Dakota certificate of title in the recipient's name, vehicle registration plates, a registration card, and an annual decal or sticker. The recipient should retain the registration card and proof of insurance when operating the vehicle on public highways.
Documents Needed for Gifting a Car in North Dakota
- Original or certified copy of the current certificate of title
- Assignment and Warranty of Title (SFN 2877), signed by both donor and recipient
- Application for Certificate of Title and Registration of a Vehicle (SFN 2872), completed and signed by the recipient
- Valid driver's license or state-issued identification card for the recipient
- Proof of liability insurance from an authorized insurance company
- Odometer reading (for vehicles less than 10 years old)
- Damage/Salvage Disclosure Statement (SFN 18609) if the vehicle is less than nine model years old and has prior damage exceeding $10,000 or 25% of retail value
- If claiming tax exemption for a family gift, documentation establishing the relationship (spouses, parents and children, grandparents and grandchildren, or siblings)
Out-of-state titles are accepted, and the Motor Vehicle Division will recognize the notarization or other requirements of the issuing state. If the previous title has been lost or cannot be located, a duplicate title may be obtained by submitting the application along with other proof of ownership.
Applicable Fees and Taxes When Gifting a Car in North Dakota
| Fee or Tax | Amount | Details |
|---|---|---|
| Certificate of Title Fee | $5 | Collected upon initial application |
| Abandoned Motor Vehicle Disposal Fee | $1.50 | Collected upon initial application |
| Motor Vehicle Excise Tax | 5% of taxable purchase price | Waived for family gifts (spouses, parents-children, grandparents-grandchildren, siblings); waived for inheritance or bequest; calculated on vehicle's fair market value |
| Registration Fee (Passenger Vehicle) | Varies by year first registered | See current passenger fee schedule; annual renewal required |
| Electric Vehicle Road Use Fee | $120 annually | Additional fee for electric vehicles only |
| Plug-in Hybrid Vehicle Road Use Fee | $50 annually | Additional fee for plug-in hybrid vehicles only |
The taxable purchase price for excise tax calculation includes all charges for accessories, dealer preparation, freight, and delivery, less any qualified discounts such as manufacturer rebates. Title, registration, license, and document fees are not part of the taxable purchase price. Payment must be made in full before the Motor Vehicle Division completes the title and registration process.
Contact Information
North Dakota Department of Transportation, Motor Vehicle Division
608 East Boulevard Avenue, Bismarck, ND 58505-0700
Phone: (701) 328-2725
Official Website: North Dakota Motor Vehicle Services
