How to Gift a Car in New Mexico in 2026
A motor vehicle gift in New Mexico constitutes a transfer of ownership from one person to another without consideration. The donor executes the assignment of title, and the recipient applies for a new certificate of title at a New Mexico Motor Vehicle Division (MVD) field office.
How Does Gifting a Car in New Mexico Work?
In New Mexico, the transfer of a motor vehicle as a gift follows the same procedural channels as a vehicle purchase, but with the critical distinction that no Motor Vehicle Excise Tax (MVET) applies if the transfer is legitimately established as a gift. The process requires the recipient to visit an MVD field office in person to apply for a new title. The donor signs the assignment section on the title, and the recipient completes an application for a new certificate of title using MVD Form 10002.
The recipient must apply for the title within 30 days if the vehicle was acquired in New Mexico or within 90 days if acquired outside the state. Failure to meet these deadlines results in a late transfer penalty of $20.00, plus a motor vehicle excise tax penalty equal to 50% of the tax rate (increasing the effective tax rate to 6% even though a gift should carry no tax).
New Mexico Car Gifting Rules You Should Know
Title Status
Most motor vehicles required to be registered in New Mexico must be titled with the Motor Vehicle Division. This includes passenger vehicles, trucks, motorcycles, recreational vehicles, motor homes, buses, manufactured or mobile homes, trailers, and off-highway motor vehicles. A certificate of title serves as proof of ownership, and only one title can exist for the same vehicle at any given time.
If a vehicle has been titled in another state, a VIN inspection may be required. New Mexico residents can obtain VIN inspections at MVD field offices, while those outside the state may obtain inspections from state police officers in their jurisdictions.
License Plates
When a vehicle is transferred by gift, the owner must remove the license plate within 30 days of the transaction. The plate may be destroyed by submitting it to the MVD, or it may be assigned to another vehicle owned by the same person. Plates can be transferred only between vehicles owned by the same individual; they cannot be transferred to a new owner.
Once the recipient registers the vehicle, new plates are issued. New plate issuance carries a $20.00 plate fee, plus applicable registration fees based on the vehicle's weight class and model year.
Taxes and Fees
A vehicle transferred as a legitimate gift is exempt from New Mexico's Motor Vehicle Excise Tax (MVET). The MVET rate is 4% of the purchase price for vehicles acquired on or after July 1, 2019. However, if the transfer is challenged or if the affidavit of gift is not properly submitted, the tax applies retroactively.
A notarized Affidavit of Gift of Motor Vehicle or Boat (MVD-10018) must be signed by both donor and recipient under penalty of perjury to establish that the transfer is a bona fide gift with no consideration. If this affidavit is not provided, the MVD presumes that a sale has occurred and assesses tax based on the declared price or the N.A.D.A. average trade-in value (whichever is higher).
Title fees and registration fees are separate from excise tax. The title application itself does not carry a separate state fee beyond registration. Registration fees for passenger vehicles range from $27.00 to $62.00 for a one-year registration, depending on vehicle weight and model year. Two-year registration options are available at fees ranging from $54.00 to $124.00. Effective July 1, 2026, passenger vehicle registration fees will increase by 25% in accordance with the state budget.
A late transfer penalty of $20.00 is imposed if the title is not applied for within 30 days in-state or 90 days out-of-state. Additionally, if the MVET penalty is incurred, a 50% surcharge on the excise tax applies, effectively doubling the tax rate to 6%.
Step-By-Step Process To Gift a Car in New Mexico
Step 1: Prepare the Affidavit of Gift.
Obtain a notarized Affidavit of Gift of Motor Vehicle or Boat (MVD-10018). Both the donor and recipient must sign the affidavit in the presence of a notary public. Both signatures must be notarized. The affidavit requires the donor to affirm that the vehicle is being transferred as a gift without consideration and the recipient to affirm that the vehicle was received as a gift.
Step 2: Remove and handle the license plate.
The donor removes the vehicle's license plate. Within 30 days, the donor takes the plate to an MVD field office to have it destroyed or applies to have the plate assigned to another vehicle owned by the donor.
Step 3: Complete the odometer disclosure.
If the vehicle is less than 10 years old, complete an Odometer Disclosure Statement (MVD-10187). Both the donor and recipient sign this document, certifying the actual odometer reading at the time of transfer. Acceptable odometer codes include "AM" (actual mileage), "EL" (excess of limits), "NM" (not actual mileage), or "EX" (exempt).
Step 4: Ensure the title is properly assigned.
The donor signs the assignment of title section on the reverse side of the certificate of title. The donor's signature must match the name on the face of the title exactly. The recipient's name must be entered exactly as it appears on identification documents.
Step 5: Schedule an appointment at an MVD field office.
The recipient schedules an appointment at the nearest MVD field office. Appointments must be scheduled in advance through the online appointment system.
Step 6: Present documents to the MVD.
At the appointment, the recipient presents the signed title, the notarized Affidavit of Gift, the completed Odometer Disclosure Statement, Application for Vehicle Title and Registration (MVD-10002), proof of liability insurance, proof of New Mexico residency (two documents required), and proof of identity. The recipient must be present in person.
Step 7: Pay applicable fees and taxes.
The recipient pays the registration fee for the vehicle's weight class and model year (ranging from $27.00 to $62.00 for one-year registration), a $20.00 plate fee, and any other applicable MVD fees. No MVET applies if the gift transfer is properly documented. If the vehicle has a lien, the lien must be released or properly transferred.
Step 8: Receive the new title and registration.
The MVD processes the application and issues a new certificate of title in the recipient's name, along with registration plates and a registration certificate. The vehicle may not be operated on public roads until this process is complete.
Step 9: Maintain proof of insurance.
Before the vehicle can be registered, the recipient must provide proof of liability insurance meeting New Mexico's minimum requirements: $25,000 for bodily injury or death to one person, $50,000 for bodily injury or death of two or more persons, and $10,000 for property damage.
Documents Needed for Gifting a Car in New Mexico
The documents required to complete a motor vehicle gift transfer in New Mexico include:
- The original certificate of title with the assignment section completed and signed by the donor
- A notarized Affidavit of Gift of Motor Vehicle or Boat (MVD-10018) signed by both donor and recipient with both signatures notarized
- A completed Odometer Disclosure Statement (MVD-10187) signed by both donor and recipient if the vehicle is less than 10 years old
- A completed Application for Vehicle Title and Registration (MVD-10002)
- Proof of liability insurance showing coverage meeting New Mexico's minimum liability requirements
- Two documents proving New Mexico residency, such as a utility bill, lease agreement, bank statement, or insurance bill
- Proof of identity, such as a driver's license or state ID
- If the vehicle has a lien, documentation releasing the lien or confirming the lien will be transferred to the recipient
- If the vehicle was acquired from out-of-state, a VIN inspection report
For title-exempt vehicles or vehicles from non-title states, a bill of sale (MVD-10009) is accepted in lieu of a title, along with the notarized Affidavit of Gift and other supporting documentation as required by the MVD.
Applicable Fees and Taxes When Gifting a Car in New Mexico
| Fee or Tax | Amount | Notes |
|---|---|---|
| Motor Vehicle Excise Tax (MVET) | $0 (Gift) | No tax on bona fide gifts with proper affidavit; 4% applies to sales |
| Registration Fee (Passenger Vehicle, 1-Year) | $27.00–$62.00 | Based on vehicle weight and model year |
| Registration Fee (Passenger Vehicle, 2-Year) | $54.00–$124.00 | Based on vehicle weight and model year |
| Plate Fee (First Issuance) | $20.00 | Charged when new plates are issued |
| Late Transfer Penalty | $20.00 | Applies if title not filed within 30 days (in-state) or 90 days (out-of-state) |
| MVET Penalty (50% surcharge) | Up to 6% effective rate | Applied if title application is delayed beyond 90 days |
| Duplicate Title Fee | Varies | Contact MVD for current fee |
Effective July 1, 2026, New Mexico will increase passenger vehicle registration fees by 25% as part of a state transportation funding initiative. Customers renewing registrations before July 1, 2026 will be charged current fees.
A gift transfer eliminates the MVET but does not eliminate registration and title-related fees. If the vehicle is subject to a lien from a financial institution, additional fees or requirements may apply. To calculate fees accurately for a specific vehicle, applicants can use the MVD online fee calculator.
Contact Information
New Mexico Motor Vehicle Division
Joseph Montoya Building, P.O. Box 1028, Santa Fe, NM 87504-1028
Phone: (888) 683-4636
Official Website: New Mexico Motor Vehicle Division
