Texas Form 14-317: Affidavit of Motor Vehicle Gift Transfer

When someone dies in Texas and leaves behind a vehicle, the heir who receives it often wants to pass it along to another family member—a child, parent, or sibling. Without the right paperwork, that second transfer triggers the full Texas motor vehicle sales tax of 6.25% on the vehicle's Standard Presumptive Value (SPV). On a $30,000 truck, that's $1,875 in tax. Texas Form 14-317 is how you avoid it.

Form 14-317 is the Affidavit of Motor Vehicle Gift Transfer, issued by the Texas Comptroller of Public Accounts. It designates a vehicle transfer as a gift rather than a sale, reducing the tax to a flat $10 fee—regardless of the vehicle's value.

When Form 14-317 Applies to Inherited Vehicles

The form applies in a specific two-step scenario common after a death:

Step 1: An heir inherits a vehicle from a decedent's estate—either through probate (with letters testamentary), through an Affidavit of Heirship for a Motor Vehicle (Form VTR-262), or through a Transfer on Death designation.

Step 2: That heir wants to give the vehicle to another person. If the recipient qualifies as an eligible family member under Texas law, the transfer is a gift subject to a $10 flat tax rather than the 6.25% sales tax.

As of September 1, 2025, the initial transfer of a vehicle from a decedent's estate to a qualified distributee is completely exempt from motor vehicle tax—the heir receives the vehicle with no tax at all. Form 14-317 governs the subsequent gift from that heir to another person.

Who Qualifies as an Eligible Gift Recipient

Texas law defines the eligible recipients for a $10 gift tax transfer. The donor (the person giving the vehicle) must be transferring it to one of the following:

• Spouse
• Parent or stepparent
• Child or stepchild
• Grandparent or grandchild
• Sibling (full or half)
• Guardian
• Recipient of a Deceased Qualified First Responder's Vehicle (a specific statutory provision)

Transfers to anyone outside this list—cousins, friends, domestic partners not married, business partners, LLCs—do not qualify for the gift tax treatment. If you transfer a vehicle without consideration to an ineligible person, Texas classifies it as a sale and taxes it at 6.25% of 80% of the vehicle's SPV, even if no money changed hands.

What the $10 Gift Tax Covers

The $10 gift tax under Form 14-317 replaces the standard motor vehicle sales and use tax for qualified transfers. It does not replace:

• The title transfer fee (varies by county: $28 in non-emissions counties, $33 in emissions-compliant counties like Tarrant and Collin)
• The registration transfer fee ($2.50 if the registration is current)
• Any local county road and bridge fees appended to registration

The full cost to process a gift transfer is typically $40–$50, not $10 total. The $10 is specifically the tax component.

How to Complete and File Form 14-317

Both the donor (the person giving the vehicle) and the recipient must sign the form. Key requirements:

Donor section: Identifies the donor, describes the vehicle (year, make, model, VIN, odometer reading), and confirms the relationship to the recipient. The donor certifies that no money, goods, services, or other consideration is being exchanged. If any payment is involved—even a partial reimbursement—the transfer is no longer a gift.

Recipient section: Identifies the recipient, confirms the relationship to the donor, and provides their Texas address.

Notarization: Both signatures must be notarized. You cannot file an un-notarized Form 14-317.

Odometer disclosure: If the vehicle is less than ten model years old, the donor must complete the odometer disclosure statement on the title or a separate disclosure form. Providing a false odometer reading is a third-degree felony under Texas law.

Where to Submit Form 14-317

You must file the form in person at your county tax assessor-collector's office. You cannot mail it or submit it online. Bring:

• Completed and notarized Form 14-317
• The vehicle's title (signed over by the donor)
• Form 130-U (Application for Texas Title and/or Registration), completed by the recipient
• Proof of Texas liability insurance in the recipient's name
• Payment for the $10 gift tax plus title and registration fees

If the vehicle has an active lienholder on the title, the lien must be released or the lienholder must consent before the title can be transferred. Contact the lender to get a lien release letter if the loan has been paid off.

The 30-Day Deadline

Texas imposes financial penalties for late title transfers. The clock starts on the date the vehicle transfer takes place. If the Application for Texas Title is not filed within 30 days:

• A $25 penalty applies for days 31–60
• An additional $25 for each subsequent 30-day period
• The penalty caps at $250

For inherited vehicles, the 30-day clock typically starts when the heir takes possession of the vehicle, not when the decedent died. But don't delay—if you're giving the vehicle to a family member, process both transfers promptly.

Using Form 14-317 Alongside Form VTR-262

These two forms often come up together in estate contexts and serve different purposes:

• Form VTR-262 (Affidavit of Heirship for a Motor Vehicle) is used when an heir needs to establish their legal right to a vehicle from a decedent's estate without going through probate. It transfers the vehicle from the deceased owner to the heirs directly.

• Form 14-317 is used when an heir who already received the vehicle (via Form VTR-262, letters testamentary, or any other method) now wants to pass it along to a family member as a gift.

You would not use both forms for the same transfer. Form VTR-262 handles the decedent-to-heir transfer; Form 14-317 handles the heir-to-family-member gift.

For more on how vehicle transfers fit into the broader Texas estate administration process, including the interaction with probate and federal step-up in basis rules, see the Texas Final Tax & Estate Tax Guide at bereavementstartguide.com/us/texas/estate-tax/.

When the Gift Tax Does Not Apply

Several scenarios disqualify a transfer from Form 14-317's $10 treatment:

Ineligible relationship: Transferring to a cousin, aunt, uncle, in-law, or anyone not on the qualifying list means 6.25% applies.

Consideration exchanged: Even agreeing to pay off the vehicle's remaining loan balance in exchange for the title converts the transaction to a sale.

Transferring to an entity: Giving a vehicle to an LLC, trust, or other business entity—even one you own—is taxed at the full rate.

Vehicle received from a non-exempt source: The $10 tax applies to gift transfers. It does not apply to estate transfers that weren't initially exempt. Confirm the initial transfer from the decedent's estate was documented correctly before using Form 14-317 for the secondary transfer.

If you're unsure whether a transfer qualifies, contact the Texas Comptroller's office or the county tax assessor-collector before filing. The penalties for incorrectly claiming the $10 gift rate include back taxes plus penalties and interest.

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