Massachusetts Vehicle Bill of Sale
Massachusetts taxes a private car sale at 6.25% of the greater of price or NADA book value, so a low price won't cut tax.
Introduction
Massachusetts does not publish an official Registry of Motor Vehicles (RMV) bill-of-sale form for automobiles. The RMV forms list includes sample bill-of-sale forms only for boats and off-highway vehicles, so for a car you supply a generic bill of sale. The detail that sets Massachusetts apart is how a private sale is taxed: when a vehicle is casually sold (not by a dealer or lessor), the use tax is 6.25% of the GREATER of the actual sales price or the vehicle's clean trade-in (NADA book) value, adjusted for mileage, under 830 CMR 64H.25.1. That book-value floor means writing a low price on the bill of sale does not lower the tax. A bill of sale showing the sales price must be submitted when the previous title has no space for a sales price, and it is also used to register age-exempt (pre-title) vehicles; otherwise it is supplementary. Federal and Massachusetts law require the seller to state the mileage at transfer of ownership. You title and register at the MassDOT RMV, and the tax is administered by the Department of Revenue. A Massachusetts vehicle bill of sale does not appear to require notarization. DocDraft drafts a Massachusetts vehicle bill of sale from your facts, with attorney review available.
Key Things to Know
- 1
Private-sale tax is 6.25% of the GREATER of price or NADA book value. When a vehicle is casually sold (not by a dealer or lessor), Massachusetts use tax is 6.25% of the greater of the actual sales price or the vehicle's clean trade-in (NADA book) value, adjusted for mileage, under 830 CMR 64H.25.1. Writing a low price on the bill of sale does not reduce the tax, because the book value sets a floor. Trailers are an exception and are taxed on the actual sales price only.
- 2
No official RMV automobile bill-of-sale form. Massachusetts does not publish an official RMV bill-of-sale form for cars. The RMV forms and applications list contains sample bill-of-sale forms only for boats and for off-highway vehicles and snowmobiles. For an automobile, the buyer supplies a generic bill of sale.
- 3
A bill of sale does not appear to need notarization. The RMV individual-purchase registration and title guide does not state a notarization requirement for the bill of sale or the title transfer. (Based on the absence of a notarization requirement in the RMV guide rather than an affirmative statement that no notary is needed; confirm with the RMV if your situation is unusual.)
- 4
Odometer disclosure is required at transfer. Federal and Massachusetts law require the seller to state the mileage upon transfer of ownership. Record the odometer reading on the title where there is space for it, and on the bill of sale as well, so the buyer's and seller's records match.
- 5
A bill of sale is required when the title has no sales-price space. If the previous title does not have a space for a sales price, a bill of sale showing the sales price must be submitted to the RMV. A bill of sale is also used to register age-exempt (pre-title) vehicles. In other cases it is supplementary, but it remains the buyer's and seller's record of the price, the as-is terms, and the date of sale.
- 6
Title and register at the MassDOT RMV. You title and register the vehicle at the MassDOT Registry of Motor Vehicles, and the use tax is administered by the Massachusetts Department of Revenue. (The RMV registration and title deadline was not confirmed in the source, so check the RMV for the current time limit to title and register after a purchase.)
- 7
The book-value floor changes what a low price means. In states that tax the stated price, lowering the bill-of-sale price lowers the tax. Massachusetts is different: because the casual-sale tax is 6.25% of the greater of price or NADA clean trade-in value adjusted for mileage, an unusually low price does not cut the tax. Record the true sale price; the book value will govern if it is higher.
Key decisions before you file
Before you file a Bill of Sale in Massachusetts, a few decisions shape the document: which option to choose and what each one means. The Bill of Sale guide walks through them.
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Massachusetts Requirements for Bill of Sale
Massachusetts does not publish an official RMV bill-of-sale form for cars. The RMV forms list includes sample bill-of-sale forms only for boats and for off-highway vehicles and snowmobiles. For an automobile, the buyer supplies a generic bill of sale.
The RMV individual-purchase registration and title guide does not state a notarization requirement for the bill of sale or the title transfer, so notarization does not appear to be required. (Based on the absence of a requirement in the RMV guide rather than an affirmative statement; confirm with the RMV if unusual.)
Identify the vehicle by VIN, year, make, model, body type, and color so the bill of sale matches the title and the RMV title and registration application.
Federal and Massachusetts law require the seller to state the mileage upon transfer of ownership. Record the odometer reading on the title where there is space, and on the bill of sale, so the buyer's and seller's records match.
Record the actual purchase price (and any trade-in) and the date of sale. The price matters for the use tax, but note that the casual-sale tax is based on the greater of this price or the NADA book value, so state the true price.
For a casual (private) sale, Massachusetts use tax is 6.25% of the greater of the actual sales price or the vehicle's clean trade-in (NADA book) value, adjusted for mileage, under 830 CMR 64H.25.1. A low stated price does not lower the tax because the book value sets a floor. Trailers are taxed on the actual sales price only. The Department of Revenue administers the tax.
If the previous title does not have a space for a sales price, a bill of sale showing the sales price must be submitted to the RMV. A bill of sale is also used to register age-exempt (pre-title) vehicles. You title and register at the MassDOT RMV. (The registration and title deadline was not confirmed in the source; check the RMV for the current time limit.)
Both the buyer and seller should sign and date the bill of sale and keep a copy. Notarization does not appear to be required for a Massachusetts private sale.
Frequently Asked Questions
A bill of sale is required in specific cases: if the previous title has no space for a sales price, a bill of sale showing the sales price must be submitted to the RMV, and a bill of sale is used to register age-exempt vehicles that were never titled. In other private sales it is supplementary rather than the document that transfers ownership, but it remains the buyer's and seller's record of the price, the as-is terms, and the date of sale.
The RMV individual-purchase registration and title guide does not state a notarization requirement for a vehicle bill of sale or the title transfer, so a Massachusetts bill of sale does not appear to need to be notarized. This is based on the absence of a notarization requirement in the RMV guide rather than an affirmative statement that no notary is needed. Both the buyer and seller should still sign and date the bill of sale and keep a copy.
No. Massachusetts does not publish an official RMV bill-of-sale form for automobiles. The RMV forms and applications list contains sample bill-of-sale forms only for boats and for off-highway vehicles and snowmobiles. For a car, the buyer supplies a generic bill of sale that records the parties, the vehicle, the price, the odometer reading, and the date of sale.
When a vehicle is casually sold (not by a dealer or lessor), the Massachusetts use tax is 6.25% of the greater of the actual sales price or the vehicle's clean trade-in (NADA book) value, adjusted for mileage, under 830 CMR 64H.25.1. Because the book value sets a floor, writing a low price on the bill of sale does not reduce the tax. Trailers are taxed on the actual sales price only. The tax is administered by the Department of Revenue.
You title and register the vehicle at the MassDOT Registry of Motor Vehicles (RMV), and the use tax is administered by the Massachusetts Department of Revenue. The RMV registration and title deadline after a purchase was not confirmed here, so check the RMV for the current time limit. If the previous title has no space for a sales price, bring a bill of sale showing the price.
Include the seller and buyer names and addresses, the vehicle description (VIN, year, make, model, body type, color), the odometer reading and disclosure, the sale price, the date of sale, an as-is statement if the vehicle is sold without a warranty, and both signatures. Massachusetts requires the seller to state the mileage at transfer, and a bill of sale showing the sales price must be submitted when the previous title has no space for a price.