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Maryland Vehicle Bill of Sale

Maryland's MVA Bill of Sale Form VR-181; notarize it so excise tax uses your sale price, not book value.

Introduction

A Maryland vehicle bill of sale records a private car sale, and the state publishes its own named form for it: the MVA Bill of Sale, Form VR-181 (rev. 05-25). The biggest reason this form matters is tax. The Maryland MDOT MVA charges its vehicle excise tax on the greater of the purchase price or the vehicle's book value, so a private sale below book value is normally taxed on the higher book figure. To have the MVA accept your actual sale price instead, the VR-181 must be notarized: the form carries a built-in notary jurat block, and a notarized VR-181 is what verifies the price for excise-tax purposes. Notarization is therefore not required for an ordinary sale, but it is the step that can lower your tax when you pay less than book value. Form VR-181 also includes the federal odometer disclosure under 49 CFR 580, with the actual-mileage certification and the two exception checkboxes. You title and register at the MDOT MVA, where the bill of sale is provided as proof of purchase price if applicable. The current excise rate and the exact age and below-book thresholds were not fully reconciled in our source, so confirm the rate and the notarization trigger with the MVA before you file. DocDraft drafts a Maryland vehicle bill of sale from your facts, with attorney review available.

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Key Things to Know

  1. 1

    Maryland has an official named form. The state publishes the MVA Bill of Sale, Form VR-181 (rev. 05-25), a state-issued form that doubles as the standard bill of sale and, when notarized, as proof of purchase price for excise tax.

  2. 2

    Notarize the VR-181 to be taxed on your price, not book value. Notarization is not required for an ordinary private sale, but a notarized VR-181 is what lets a below-book sale price set the excise-tax basis. The form has a built-in notary jurat block for this purpose.

  3. 3

    Odometer disclosure is built into the form. Form VR-181 carries the federal 49 CFR 580 actual-mileage certification with the two exception checkboxes (mileage exceeds mechanical limits, or the reading is not the actual mileage), so the disclosure is made on the form itself.

  4. 4

    Excise tax is charged on the greater of price or book value. The MVA bases the vehicle excise tax on the greater of the purchase price or the vehicle's book value, with a minimum book value floor. A notarized VR-181 is how a price below book value gets honored instead.

  5. 5

    You title and register at the MDOT MVA. The Maryland Motor Vehicle Administration handles titling and registration, and a bill of sale is provided as proof of purchase price if applicable alongside the assigned title.

  6. 6

    A bill of sale is conditionally required, not always. For a used vehicle bought from a non-dealer, the bill of sale is provided if applicable, and it becomes functionally necessary, notarized, when you want a below-book sale price honored for tax.

  7. 7

    Notarize-for-tax is the Maryland difference. Unlike states where notarization is never tied to tax, Maryland lets a notarized VR-181 substitute your actual sale price for the book value the MVA would otherwise tax, with a vehicle-age distinction. Confirm the current rate and the exact age and below-book thresholds with the MVA.

Key decisions before you file

Before you file a Bill of Sale in Maryland, a few decisions shape the document: which option to choose and what each one means. The Bill of Sale guide walks through them.

Open the Bill of Sale guide

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MARYLAND VEHICLE BILL OF SALE (MVA Bill of Sale, Form VR-181)

(Maryland publishes an official MVA Bill of Sale, Form VR-181 (rev. 05-25). This template mirrors that form. If you want the Maryland MDOT MVA to base excise tax on your purchase price instead of the vehicle's book value, this bill of sale must be NOTARIZED. Use the notary block below. Confirm the current excise rate and the age and below-book thresholds with the MVA.)

This Bill of Sale is made on [DATE] between:

SELLER: [SELLER NAME], of [SELLER ADDRESS] BUYER: [BUYER NAME], of [BUYER ADDRESS]

VEHICLE DESCRIPTION Year: [YEAR] Make: [MAKE] Model: [MODEL] Body type: [BODY TYPE] Color: [COLOR] VIN: [VEHICLE IDENTIFICATION NUMBER]

SALE PRICE The Seller sells the vehicle described above to the Buyer for the total sum of $[SALE PRICE]. (Maryland excise tax is charged on the greater of this purchase price or the vehicle's book value, subject to a minimum book value floor. A notarized VR-181 is what lets a price below book value set the tax basis. Check the MVA for the current rate and the vehicle-age threshold.)

ODOMETER DISCLOSURE The odometer reads [MILEAGE] miles. To the best of my knowledge the odometer reading is the actual mileage of the vehicle unless one of the following is checked: [ ] The mileage is in excess of its mechanical limits. [ ] The odometer reading is not the actual mileage. WARNING: ODOMETER DISCREPANCY. (Federal odometer disclosure under 49 CFR 580, integrated into Form VR-181.)

AS-IS SALE The vehicle is sold AS-IS, without any warranty of any kind, express or implied, unless otherwise stated in writing here: [ANY WRITTEN WARRANTY TERMS].

SIGNATURES The Seller certifies the above information is true and that the Seller is the lawful owner with the right to sell the vehicle.

Date: [DATE]

[SELLER NAME], Seller

Date: [DATE]

[BUYER NAME], Buyer

NOTARY JURAT (Required when this VR-181 is used to establish the purchase price for Maryland excise tax. Not required for an ordinary private sale.)

State of Maryland County of [COUNTY]

Subscribed and sworn to before me this [DAY] day of [MONTH], year [YEAR], by [SELLER NAME].

Notary Public Printed name: [NOTARY NAME] My commission expires: [DATE] [NOTARY SEAL]

Maryland Requirements for Bill of Sale

Official MVA Bill of Sale, Form VR-181

Maryland publishes a state-issued named form, the MVA Bill of Sale, Form VR-181 (rev. 05-25). It functions as the standard bill of sale and, when notarized, as proof of purchase price for excise tax. Use this form for a Maryland private vehicle sale.

Notarize to Use Your Sale Price for Tax

Notarization is not required for an ordinary sale, but the VR-181 must be notarized when you want a sale price below the vehicle's book value honored for excise tax. The form carries a built-in notary jurat block. A vehicle-age distinction applies; confirm the exact age and below-book thresholds with the MVA.

Vehicle Description and VIN

Identify the vehicle by year, make, model, body type, color, and the full vehicle identification number (VIN), along with the sale price and date, so the VR-181 matches the title being assigned.

Odometer Disclosure on the Form

Form VR-181 includes the federal odometer disclosure under 49 CFR 580: the actual-mileage certification with the two exception checkboxes for mileage that exceeds mechanical limits or that is not the actual mileage. The disclosure is made on the form itself.

Excise Tax on the Greater of Price or Book Value

The Maryland MVA bases vehicle excise tax on the greater of the purchase price or the vehicle's book value, subject to a minimum book value floor. A notarized VR-181 lets a below-book sale price set the basis instead. The current rate was not fully reconciled in our source; check the MVA for the current excise rate.

Vehicle-Age Distinction on the Tax Basis

Maryland applies a vehicle-age distinction to how the excise tax basis is set for older vehicles, alongside the minimum book value floor. The exact age threshold was not fully reconciled in our source, so confirm the age threshold and the floor with the MVA before relying on them.

Title and Register at the MDOT MVA

The Maryland MDOT Motor Vehicle Administration (MVA) handles titling and registration. Submit the assigned title with the MVA Bill of Sale Form VR-181 as proof of purchase price if applicable, and bring a notarized VR-181 to have a below-book price honored for tax.

Bill of Sale Is Conditionally Required

For a used vehicle bought from a non-dealer, the bill of sale is provided as proof of purchase price if applicable, and it is functionally required, notarized, when you want a below-book sale price honored for excise tax. Otherwise it is supplementary alongside the assigned title.

Frequently Asked Questions

Maryland publishes the MVA Bill of Sale, Form VR-181, and a bill of sale is provided as proof of purchase price if applicable when titling a used vehicle bought from a non-dealer. It becomes practically necessary when you want a sale price below the vehicle's book value honored for excise tax, because the MVA verifies that price through a notarized VR-181. For an ordinary sale it documents the parties, vehicle, price, and date.

Not for an ordinary private sale. Notarization matters in one specific case: when you want the MVA to base excise tax on a sale price below the vehicle's book value, the VR-181 must be notarized to verify that price. The form includes a built-in notary jurat block for this. A vehicle-age distinction applies, so confirm the exact age and below-book thresholds with the MVA before relying on them.

Yes. The Maryland MDOT MVA publishes the MVA Bill of Sale, Form VR-181 (rev. 05-25), a state-issued named form. It functions as the standard bill of sale and, when notarized, as proof of purchase price for excise tax. The form includes the federal odometer disclosure with the actual-mileage certification and a notary jurat block. It is available from the Maryland Motor Vehicle Administration.

Maryland charges its vehicle excise tax on the greater of the purchase price or the vehicle's book value, subject to a minimum book value floor. A notarized VR-181 lets a sale price below book value set the tax basis instead, and a vehicle-age distinction applies to how older vehicles are taxed. The exact current rate was not fully reconciled in our source, so check the MVA for the current excise rate and thresholds.

Title and registration are handled by the Maryland MDOT Motor Vehicle Administration (MVA). You submit the assigned title and, if applicable, the MVA Bill of Sale Form VR-181 as proof of purchase price. To have a below-book sale price honored for excise tax, bring a notarized VR-181. Confirm current titling requirements, fees, and any deadline with the MVA before you file.

Use the MVA Bill of Sale, Form VR-181. It names the seller and buyer, describes the vehicle by year, make, model, and VIN, states the sale price and date, and carries the federal odometer disclosure with its exception checkboxes. Because a notarized VR-181 is what lets a below-book price set the excise-tax basis, the form includes a notary jurat block. Complete and notarize it when you want your actual sale price taxed.