Do you have to pay taxes on a gifted car in North Carolina?

If your car is a gift from your spouse, parent, or stepparent, you can have the 3% highway use tax—the sales tax that applies to all vehicle purchases—waived. Otherwise, you might still need to pay a few taxes and minor fees.

Is it better to gift a car or sell it for $1 in North Carolina?

Though it’s possible to sell your car for $1, we wouldn’t recommend it: it often takes more work than simply gifting the car and rarely saves you money. On top of that, the contract wouldn’t be based on the fair market value of the car, so it might not be legally valid.