1. Sales Tax: Connecticut imposes a 6.35% sales tax on the fair market value of the gifted vehicle. The recipient is responsible for paying this sales tax. The fair market value is determined based on factors such as the vehicle's make, model, year, mileage, and condition.
2. Title Transfer Fee: When the ownership of a vehicle is transferred, the recipient must pay a title transfer fee. This fee is typically around $35, but it may vary depending on the specific circumstances.
3. Registration Fee: The recipient must also pay a vehicle registration fee. The amount of this fee depends on the type of vehicle and its weight. For a passenger car, the registration fee is typically around $60.
4. Emissions Inspection Fee: If the vehicle is more than four years old, the recipient may need to pay an emissions inspection fee. This fee is typically around $20.
5. Personal Property Tax: Depending on the municipality where the recipient resides, they may be required to pay a personal property tax on the gifted vehicle. The amount of this tax varies depending on the municipality and the value of the vehicle.
6. Gift Tax: Connecticut does not have a gift tax, so there is no tax liability at the state level. However, the federal gift tax may apply if the value of the gifted vehicle exceeds a certain amount. The federal gift tax exclusion amount for 2023 is $17,000 per recipient, per year. If the value of the vehicle exceeds this amount, the donor may be responsible for paying federal gift tax.
It is important to note that these taxes and fees may vary depending on the specific circumstances of the gift. To obtain accurate and up-to-date information, it is advisable to consult with the Connecticut Department of Motor Vehicles (DMV) or a tax professional.
