Car gift, no sales/use tax?

I am planning to get a used car which will be gifted to me by my friend. Will I have to pay any use/sales tax? Car KBB value is $7000. Will my friend have to pay any tax as he is gifting it to me?





If I buy the car instead from a third-party seller, how much will be the use/sales tax?





I did not anticipate these expenses and want to avoid/minimize the tax i pay, please suggest what is the best way to approach this|||It depends what state you live in.





In Indiana where I'm from there's a small gift tax of 30 or 40 dollars,


but here in Texas if you receive a vehicle as a gift you still have to pay sales tax for the MARKET VALUE of the vehicle which is KBB value. Our sales tax is 8.25%.





But as I said every state is different, what state are you in??|||It really depends on the state and their tax laws.





In some states you pay tax on the value of the car regardless of how much you paid for it. Some charge tax based on the sale price. In some states, like here in GA where I live you pay zero taxes on a used car that you buy from a private individual.





Check with the DMV and they will advise you. But let me warn you, if you try to lie and pay less taxes than are due you will get questioned and you could face penalties and fines if the state determines you were trying to pull a scam. They take tax fraud cases serious.|||There's no tax on a vehicle transferred as a gift in CA.





The DMV has a statement you have to fill out and present at the time you register.