Rhode Island Vehicle Bill of Sale
Rhode Island taxes a private car 7 years or newer at 7% of the greater of NADA Clean Retail value or price, so a low price won't cut tax.
Introduction
Rhode Island publishes an official RI DMV 'BILL OF SALE' form (PDF, revised 11-3-2023, no distinct form number) with an integrated ODOMETER DISCLOSURE section, listed on the registration-forms page as a sample bill of sale. A bill of sale is required documentation to register a private-party vehicle, and it is filed with the companion Form TR-1 (Application for Registration and Title). The detail that sets Rhode Island apart is how a private sale is taxed. For a private-party sale of a vehicle 7 years old or less, the 7% sales tax is charged on the GREATER of the vehicle's NADA Clean Retail book value or the stated sale price, whichever is greater. That book-value floor means writing a low price on the bill of sale does not lower the tax. Vehicles 8 to 29 years old are taxed at 7% of the sale price; vehicles 30 years and older are taxed on the greater of NADA Clean Retail, CPI book value, or purchase price. The RI DMV Bill of Sale form contains no notary block, so notarization is not required. You title and register at the Rhode Island Division of Motor Vehicles (DMV); an out-of-state used vehicle requires a VIN inspection before registration. DocDraft drafts a Rhode Island vehicle bill of sale from your facts, with attorney review available.
Key Things to Know
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Official RI DMV Bill of Sale form with integrated odometer disclosure. Rhode Island publishes an official RI DMV 'BILL OF SALE' form (PDF, revised 11-3-2023, no distinct form number) that includes an integrated ODOMETER DISCLOSURE section. It is listed on the DMV registration-forms page as a sample bill of sale, provided as a template rather than a mandated layout. A bill of sale is filed with the companion Form TR-1 (Application for Registration and Title).
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Notarization is not required. Neither the bill of sale nor the title-transfer assignment must be notarized in Rhode Island. The official RI DMV Bill of Sale form contains no notary block. Both the buyer and seller should still sign and date the form and keep a copy.
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Odometer disclosure is built into the state form. The official RI DMV Bill of Sale form integrates the odometer disclosure, tracking the federal 49 CFR 580 baseline. It requires the current odometer reading in miles and lets the seller indicate whether the mileage reflects actual vehicle mileage or whether one of two exceptions applies (the mechanical limit has been exceeded, or a discrepancy exists). No separate odometer statement is needed when this section is completed.
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Private-sale tax is 7% of the GREATER of NADA Clean Retail value or price (vehicles 7 years or newer). For a private-party sale of a vehicle 7 years old or less, Rhode Island's 7% sales tax is charged on the greater of the vehicle's NADA Clean Retail book value or the sale price, whichever is greater. Because the book value sets a floor, writing a low price on the bill of sale does not reduce the tax. Vehicles 8 to 29 years old are taxed at 7% of the sale price; vehicles 30 years and older are taxed on the greater of NADA Clean Retail, CPI book value, or purchase price.
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Title and register at the RI Division of Motor Vehicles. You title and register the vehicle at the Rhode Island Division of Motor Vehicles (DMV), and the bill of sale drives the sales-tax assessment. An out-of-state used vehicle requires a VIN inspection before registration. (DMV guidance indicates new residents must title and register within 30 days, but that deadline was not confirmed on the new-registration page itself, so check the RI DMV for the current time limit.)
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A bill of sale is required to register a private-party vehicle. The RI DMV new-registration page lists 'Bill of Sale' as required documentation for both Dealer Sale and Private Party Sale, with sample forms provided. For a private sale it is more than a record: it documents the price that drives the sales-tax assessment and is filed alongside Form TR-1 to register the vehicle.
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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. Rhode Island is different for vehicles 7 years old or less: because the 7% tax is charged on the greater of the NADA Clean Retail book value or the sale price, 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 Rhode Island, 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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Rhode Island Requirements for Bill of Sale
The RI DMV publishes an official 'BILL OF SALE' form (PDF, rev 11-3-2023, no distinct form number) with an integrated odometer disclosure, listed on the registration-forms page as a sample bill of sale. It is required documentation to register a private-party vehicle and is filed with the companion Form TR-1 (Application for Registration and Title).
Neither the bill of sale nor the title-transfer assignment must be notarized in Rhode Island, and the official RI DMV Bill of Sale form contains no notary block. Both the buyer and seller should still sign and date the form and keep a copy.
Identify the vehicle by VIN, year, make, model, body type, and color so the bill of sale matches the title and the Form TR-1 registration and title application.
The official RI DMV Bill of Sale form integrates the odometer disclosure, tracking the federal 49 CFR 580 baseline. Enter the current reading in miles and indicate whether it reflects actual mileage or whether one of two exceptions applies (mechanical limit exceeded or discrepancy exists). No separate odometer statement is needed when this section is completed.
Record the actual purchase price and the date of sale. The price drives the sales-tax assessment, but for a vehicle 7 years old or less the 7% tax is charged on the greater of this price or the NADA Clean Retail book value, so state the true price.
Rhode Island's vehicle sales/use tax is 7%. For a private-party sale of a vehicle 7 years old or less, the tax is charged on the greater of the vehicle's NADA Clean Retail book value or the sale price. Vehicles 8 to 29 years old are taxed at 7% of the sale price; vehicles 30 years and older are taxed on the greater of NADA Clean Retail, CPI book value, or purchase price. The book-value floor means a low stated price does not lower the tax.
A bill of sale is required to register a private-party vehicle and is filed with Form TR-1 (Application for Registration and Title) at the Rhode Island Division of Motor Vehicles. An out-of-state used vehicle requires a VIN inspection before registration. (DMV guidance indicates new residents register within 30 days, but that deadline was not confirmed on the new-registration page; check the RI DMV for the current time limit.)
Both the buyer and seller should sign and date the bill of sale and keep a copy. Notarization is not required for a Rhode Island private-party sale.
Frequently Asked Questions
Yes. The RI DMV lists a bill of sale as required documentation to register a private-party vehicle, and it is filed with Form TR-1 (Application for Registration and Title). The RI DMV publishes an official Bill of Sale form with an integrated odometer disclosure that you can use. The bill of sale also documents the sale price, which drives the 7% sales-tax assessment, so both the buyer and seller should sign and keep a copy.
No. Neither the bill of sale nor the title-transfer assignment must be notarized in Rhode Island, and the official RI DMV Bill of Sale form contains no notary block. The buyer and seller should still both sign and date the form and keep a copy. The completed bill of sale is filed with Form TR-1 when you register the vehicle at the RI DMV.
Yes. The RI DMV publishes an official 'BILL OF SALE' form (PDF, revised 11-3-2023, with no distinct form number) that includes an integrated odometer disclosure section. It is listed on the DMV registration-forms page as a sample bill of sale. It is provided as a template rather than a mandated layout, and it is filed with the companion Form TR-1 (Application for Registration and Title) to register a private-party vehicle.
Rhode Island's vehicle sales/use tax rate is 7%. For a private-party sale of a vehicle 7 years old or less, the tax is 7% of the greater of the vehicle's NADA Clean Retail book value or the sale price, so a low stated price does not lower the tax. Vehicles 8 to 29 years old are taxed at 7% of the sale price. Vehicles 30 years and older are taxed on the greater of NADA Clean Retail, CPI book value, or purchase price.
You title and register the vehicle at the Rhode Island Division of Motor Vehicles (DMV), filing the bill of sale with Form TR-1 (Application for Registration and Title). An out-of-state used vehicle requires a VIN inspection before registration. DMV guidance indicates new residents must register within 30 days, but that deadline was not confirmed on the new-registration page itself, so check the RI DMV for the current time limit.
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. The official RI DMV Bill of Sale form integrates the odometer disclosure. Record the true sale price, because for vehicles 7 years or newer the 7% tax applies to the greater of price or NADA Clean Retail value.