How to Gift a Car in Arkansas in 2026

Gifting a motor vehicle in Arkansas involves a transfer of vehicle title to the recipient without monetary consideration. The donor must sign the title in the designated assignment section, and the recipient must apply for the title and registration within 60 days of receiving the vehicle to comply with state law. This process is administered by the Arkansas Department of Finance and Administration, Office of Motor Vehicle, and requires completion of the same title and registration procedures used for all vehicle ownership transfers.

How Does Gifting a Car in Arkansas Work?

When a motor vehicle is gifted in Arkansas, the donor signs the title to assign ownership to the recipient. The recipient then gathers the signed title, completed registration application, bill of sale or odometer disclosure statement, proof of personal property assessment, proof of property taxes paid, and proof of liability insurance. The recipient submits these documents to any State Revenue Office to apply for a new title and registration in the recipient's name.

Arkansas permits gifts to be documented with a bill of sale that clearly indicates the transfer is a gift. Under Arkansas tax law, a sale does not occur when a vehicle is transferred as a gift, meaning no sales tax applies to the transaction. However, the recipient remains responsible for registration fees, title fees, property assessment requirements, and other applicable state and local taxes when registering the vehicle.

Arkansas Car Gifting Rules You Should Know

Title Status and Assignment

A certificate of title proves ownership of a motor vehicle in Arkansas. When a vehicle is gifted, the current owner must transfer the title by signing the assignment section on the back of the title document or on a bill of sale form designated by the state. The assignment must be completed accurately to ensure the vehicle title transfers to the recipient without delay.

Arkansas requires that the signature on the title match exactly the name as it appears on the front of the title. Variations in spelling, initials, or other identifying information can cause the title application to be rejected during processing. The donor should use blue or black ink when signing the title.

Multiple Owners and Signature Requirements

When a vehicle is jointly owned, the method of ownership connection determines whether both owners must sign or only one owner is required. Joint ownership is indicated by the words "AND" or "OR" appearing between the owner names on the title and related documents.

If owners are joined by "AND," both owners must sign the title and all related documents to release the vehicle. If owners are joined by "OR," either owner may sign alone to transfer the vehicle. All owners must sign the title application when the vehicle is initially registered or titled.

Odometer Disclosure

Federal law requires an odometer disclosure statement-,Odometer%20Statement,-.%20Under%20federal%20guidelines) for vehicles being transferred, unless the vehicle qualifies for an exemption. Vehicles less than 20 years old must have a fully completed odometer disclosure statement, signed by both the donor and the recipient, certifying the vehicle's accurate mileage at the time of transfer.

The odometer disclosure must include the actual mileage reading at the time of transfer, with no estimation or guessing. The form is completed on the back of the title if the title is an Arkansas-issued certificate or on a separate Vehicle Bill of Sale/Odometer Disclosure Statement form if required. Both the donor and the recipient must sign to acknowledge the stated mileage.

License Plates and Registration Transfer

When a gift transfer occurs, the donor may transfer the current license plate to another vehicle owned by the donor or surrender it. A tag transfer fee of $1.00 applies if plates are transferred to another vehicle. The recipient receives new license plates upon completing the title and registration process.

Upon transfer of ownership, the previous registration expires. The recipient must display valid license plates on the vehicle to operate it lawfully on public roads until a new registration is issued.

Personal Property Assessment and Tax Requirements

Before a vehicle can be titled and registered in Arkansas, proof must be provided that the vehicle has been assessed with the county assessor and that personal property taxes have been paid. The county assessor is responsible for listing the vehicle for assessment, and personal property must be reported to the assessor between January 1 and May 31 each year to avoid a 10% penalty. Personal property taxes are due by October 15 of each year. Proof of assessment and proof that personal property taxes due by the previous October 15th have been paid are required at the time of registration.

The recipient should visit the county assessor's office in the recipient's county of residence to list the vehicle for assessment before registering it with the state. The assessment establishes the vehicle's taxable value for annual property tax purposes.

Sales Tax and Registration Fees

A gift transfer is not treated as a sale for Arkansas sales tax purposes; therefore, sales tax does not apply to gift transfers. The state sales tax rate of 6.5% applies only to purchase transactions where consideration is exchanged. Texarkana residents are subject to a 7% rate, and local taxes may apply depending on residence location.

The recipient must pay applicable registration and title fees based on the vehicle type and weight. A $10.00 title fee is charged for title issuance. Registration fees vary by vehicle class and are detailed in the state fee schedule. Local taxes may be assessed and do not exceed $25.00 per 1% of the tax rate.

Insurance Requirements

Proof of liability insurance coverage must be provided when registering a vehicle in Arkansas. The recipient is required to maintain liability insurance on the vehicle being registered and titled. Arkansas requires minimum liability coverage of $25,000 for bodily injury to one person, $50,000 for bodily injury to multiple persons, and $25,000 for property damage, or the equivalent coverage as required by the Safety Responsibility Law.

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

Step 1: Have the Donor Sign the Title Assignment

The donor must sign the back of the title in the designated assignment section or on a bill of sale form. The signature must match exactly the name as it appears on the front of the title using blue or black ink. If the vehicle is jointly owned with "AND" connecting the names, all owners must sign. If "OR" connects the names, either owner may sign alone.

Step 2: Complete the Odometer Disclosure Statement

For vehicles less than 20 years old, the donor must record the current odometer reading on the back of the title or on a separate Vehicle Bill of Sale/Odometer Disclosure Statement form. The recipient must acknowledge and sign the odometer statement confirming the mileage disclosed.

Step 3: Obtain County Assessment and Tax Documentation

The recipient must visit the county assessor's office in the recipient's county of residence to list the vehicle for assessment. The assessor will provide documentation showing the vehicle has been assessed for the current year. The recipient must also provide proof that personal property assessment requirements have been met or obtain certification that the vehicle has been listed for assessment.

Step 4: Secure Proof of Liability Insurance

The recipient must obtain proof of liability insurance coverage in the recipient's name for the vehicle being registered. The insurance policy must be issued by a company authorized to do business in Arkansas and must meet the minimum liability requirements established by the Safety Responsibility Law.

Step 5: Complete the Vehicle Registration Application

The recipient must complete the Vehicle Registration Application with the recipient's name, address, vehicle information, and other required details. The application must be signed by the recipient.

Step 6: Submit Documents at a State Revenue Office

The recipient may submit all completed documents in person at any State Revenue Office to apply for title and registration. Documents may also be submitted by mail to:

Office of Motor Vehicle
P O Box 3153
Little Rock, AR 72203-3153

Documents required include the signed title, completed registration application, bill of sale with odometer disclosure, proof of county assessment, proof of property assessment and taxes, and proof of liability insurance.

Step 7: Complete Title and Registration Transfer

Upon receipt of all required documents and payment of applicable fees, the Arkansas Department of Finance and Administration will issue a new title in the recipient's name and issue registration and license plates. Processing typically takes several weeks.

Documents Needed for Gifting a Car in Arkansas

The documents required to complete a gift transfer of a motor vehicle in Arkansas include the following:

• Current vehicle title with assignment section completed and signed by all applicable owners
• Completed Vehicle Registration Application
• Vehicle Bill of Sale/Odometer Disclosure Statement or completed bill of sale documenting the gift transfer, signed by both donor and recipient
• Odometer disclosure statement signed by both donor and recipient (for vehicles less than 20 years old)
• Proof from the county assessor that the vehicle has been assessed or listed for assessment for the current year
• Proof that personal property assessment requirements have been completed, or certification of assessment status
• Proof of liability insurance coverage from an Arkansas-authorized insurance company
• Payment for applicable title fee, registration fee, and any local taxes

If the title is a prior Arkansas title with a control number less than 3003001, or if an out-of-state title is being surrendered, a separate bill of sale and conforming odometer statement must accompany the title. If the control number on an Arkansas title is 3003001 or greater, the bill of sale and odometer statement on the back of the title are sufficient if completed properly.

Applicable Fees and Taxes When Gifting a Car in Arkansas

The title fee of $10.00 is charged when a new title is issued in the recipient's name. A tag transfer fee of $1.00 applies if the donor chooses to transfer the current license plates to another vehicle owned by the donor.

Registration fees vary based on vehicle type, weight, and engine displacement. The recipient should consult the Motor Vehicle Registration Fee Schedule to determine the exact registration fee applicable to the specific vehicle being registered. For passenger vehicles, trucks, motor homes, motorcycles, all-terrain vehicles, trailers, and other vehicle classes, different fee schedules apply.

Because a gift transfer is not treated as a sale, state sales tax does not apply. The state's standard sales tax rate of 6.5% (or 7% for Texarkana residents) applies only to purchase transactions where monetary consideration is exchanged. Local taxes imposed by some counties do not exceed $25.00 for each 1% of tax due.

Contact Information

Arkansas Department of Finance and Administration, Office of Motor Vehicle
Ragland Building, 1900 W 7th Street, Suite 1010, Little Rock, Arkansas 72201
Phone: (501) 682-4692
Official Website: Arkansas Department of Finance and Administration Motor Vehicle Division