Do you pay Tax on car gift in Ohio?

In the state of Ohio, receiving a gift of a motor vehicle is generally not subject to state income tax. Gifts, including vehicles, are typically exempt from income taxation at the federal and state levels. However, there might be other taxes or fees associated with transferring ownership or registering the vehicle.

When you receive a gifted vehicle in Ohio, you will need to go through the process of transferring the title and registering the vehicle with the Bureau of Motor Vehicles (BMV). There are certain documents and forms that you must complete and submit to the BMV, along with any applicable fees.

The BMV will typically charge a title transfer fee, a registration fee, and a sales tax. The sales tax is based on the purchase price of the vehicle, and in some cases, the donor's purchase price may be used to determine the sales tax liability. However, there may be exemptions or reduced rates for certain situations, such as gifts between immediate family members.

It's essential to note that county sales tax rates may vary in Ohio, and you might also be responsible for any local taxes or fees related to the vehicle title transfer or registration. For accurate and up-to-date information on taxes and fees, it's recommended to consult the Ohio BMV website or contact your local BMV office. They will be able to provide you with specific details about the taxes and fees applicable to your situation when transferring ownership and registering a gifted vehicle.