Maryland Bill of Sale for a Car: What the MVA Says (2026)

The Maryland Motor Vehicle Administration (MVA) says a bill of sale is not always required for a private car sale, but it strongly recommends one. On its selling page it adds that some buyers may need the document to title the vehicle, and its title checklist asks for proof of purchase price “and a bill of sale if applicable”.

Quick answer

Selling in another state? See the bill of sale guides for Nevada and Arizona.

What the bill of sale should include

What the buyer submits to title the vehicle

For a car bought from a private seller, the MVA lists:

The MVA says not to change or alter official documents, and that errors or missing information can delay processing. Before applying, confirm that the seller gave you the original title properly assigned to you, that all required sections are completed correctly, and that any liens on the title have been released.

What the seller does

1. Have a valid Maryland title in your name. If it is lost or damaged, request a duplicate before selling. Any lien must be released before the sale.
2. Check that the VIN, owner names and address on the title are correct.
3. On the back of the title, add the buyer’s name and address, the sale price, the odometer reading (required by federal law), the owner’s signature and the date of sale. If several owners are listed, all must sign unless the title shows “OR”.
4. Consider providing a bill of sale.
5. Remove your license plates before the buyer takes the vehicle. Plates stay with the seller, and you should not let the buyer use them.
6. Return the plates to the MVA and keep your plate return receipt.
7. Keep proof of the sale, meaning copies of the completed title (front and back) and the bill of sale.

What the buyer does

1. Check the title before you pay. It should match the VIN, show the seller as owner and be free of liens unless the lien will be released at the sale.
2. Make sure the seller filled in the buyer, price and odometer sections, signed and dated the title.
3. Get insurance. You need Maryland auto insurance before you register the vehicle.
4. Get a Maryland Safety Inspection. The MVA says most used vehicles must pass it before they can be titled and registered.
5. Title and register the vehicle. In many cases you can do both at the same time.

The MVA warns about curbstoners, meaning unlicensed sellers who pose as private sellers. Red flags it lists: the seller’s name is not on the title, the seller refuses to meet at home, the price seems too low, and the seller has several vehicles for sale.

After you apply

Your Maryland Certificate of Title is mailed to you after your application is approved. Processing times vary with application volume and accuracy, and you can check your order status online.

Do you need a bill of sale in Maryland?

• Private sale: not always required, but the MVA strongly recommends one to protect buyer and seller, and it can be needed to title the car. If you want the price you paid to set the excise tax, use the notarized VR-181.
• The buyer is titling the car: the buyer, not the seller, submits the paperwork, in person at a branch or by mail, with the assigned title and proof of price.
• You want to protect yourself as the seller: keep copies of the completed title and the bill of sale.
• The title has a mistake: ask the MVA before you submit; the seller’s error on the title needs correcting.

Why the bill of sale matters for the tax: form VR-181

The MVA’s own form is the Bill of Sale, VR-181. It says that if the form is used to establish the purchase price of your vehicle, a notary is required, and it includes a place for a second notarization for a party who is not present at the first. The form also has the seller and buyer certify the price under penalty of perjury and states that a false statement is a misdemeanor with a fine up to $500, imprisonment up to 2 months, or both.

The reason the price matters is the excise tax. The MVA says you pay excise tax to title and register a vehicle in Maryland, and for a recently purchased vehicle the 6.5% tax is based on the greater of two amounts: the total purchase price verified by a notarized Bill of Sale (VR-181) signed by the buyer and seller, or $640. In other cases the MVA uses the purchase price or the valuation in a national publication of used car values, with an addition or subtraction for high or low mileage. On vehicles seven years old and older, the tax is based on the greater of the purchase price or the minimum book value of $640.

So the “seven years” that people mention online is about the tax basis. It is not a rule that a bill of sale is unnecessary for older cars. The MVA pages we read say a bill of sale is not always required but is strongly recommended.

Common mistakes

• Paying before checking the title.
• Accepting an incomplete or altered title.
• Buying from someone who is not listed on the title.
• Skipping the safety inspection.
• Delaying titling and registration.
• As a seller, leaving sections of the title blank, forgetting to remove plates or not keeping copies.

Frequently asked questions

Do I need a bill of sale in Maryland?

The MVA says not always, but it strongly recommends one and lists it as “if applicable” in its title checklist.

Can I drive the car before it is titled?

The MVA says you must meet Maryland registration and insurance requirements before driving.

What if the seller made a mistake on the title?

The MVA says incorrect titles may need correction before it can process your application.

This guide is general information compiled from the MVA pages listed under Sources. Rules change, and this site is not part of any government agency. Confirm the current requirements with the Maryland MVA before you sign or pay.