Texas Vehicle Bill of Sale
Texas taxes a used-vehicle sale at 6.25% on the greater of price or 80% of Standard Presumptive Value.
Introduction
A Texas vehicle bill of sale records a private-party car sale, the parties, the vehicle, the price, the odometer reading, and the as-is terms. Texas does not publish an official general or private-party bill of sale form. The TxDMV only puts out specialty forms, the Bill of Sale for a Junk Motor Vehicle (Form VTR-203) and the Component Part(s) Bill of Sale (Form VTR-63). What actually transfers and titles a standard used vehicle is the Application for Texas Title and/or Registration (Form 130-U) plus the signed title assignment, not a bill of sale. The detail that sets Texas apart is the tax. Under Texas Tax Code Sec. 152.0412, when the price paid is less than 80 percent of the vehicle's Standard Presumptive Value (SPV), the county tax assessor-collector computes the 6.25 percent motor vehicle sales tax on 80 percent of SPV instead of the stated price. A low number on your bill of sale cannot drop the tax below that SPV floor. The bill of sale is not notarized and is not required to title the vehicle, but it is recommended documentation. You title with your county tax assessor-collector within 30 days of the sale. DocDraft drafts a Texas vehicle bill of sale from your facts, with attorney review available.
Key Things to Know
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There is no official Texas bill of sale form for a standard private-party vehicle sale. The TxDMV publishes only specialty forms, the Bill of Sale for a Junk Motor Vehicle (Form VTR-203) and the Component Part(s) Bill of Sale (Form VTR-63).
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A Texas vehicle bill of sale does not need to be notarized. TxDMV has no requirement that a private-party vehicle bill of sale or the title assignment be notarized; the signed title assignment and Form 130-U effect the transfer.
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The seller must disclose the odometer reading at transfer. Texas Transportation Code Sec. 501.072 requires the odometer disclosure in compliance with 49 U.S.C. 32705, except for vehicles exempt under federal rules, and it is captured on the title or Form 130-U. Confirm current exempt-vehicle rules with TxDMV.
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Texas computes used-vehicle sales tax of 6.25 percent on the greater of the actual sales price or 80 percent of the vehicle's Standard Presumptive Value (SPV). If your price is under that 80%-of-SPV figure, the county taxes the SPV-based amount, so a low bill-of-sale price cannot reduce the tax below the floor.
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You title the vehicle with your county tax assessor-collector within 30 days from the date of sale. Titling and registration run through the TxDMV system at the county office.
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A bill of sale is optional in Texas, not a titling prerequisite. The signed title assignment plus Form 130-U transfer the vehicle; a bill of sale is recommended supplementary documentation.
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The standout Texas rule is the SPV floor. Because the 6.25 percent tax is figured on the greater of price or 80 percent of Standard Presumptive Value under Tax Code Sec. 152.0412, understating the price on the bill of sale will not lower what you owe at the county window.
Key decisions before you file
Before you file a Bill of Sale in Texas, 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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Texas Requirements for Bill of Sale
Texas does not publish an official general or private-party vehicle bill of sale form. The TxDMV publishes only the Bill of Sale for a Junk Motor Vehicle (Form VTR-203) and the Component Part(s) Bill of Sale (Form VTR-63). A standard used vehicle is titled with the Application for Texas Title and/or Registration (Form 130-U) plus the signed title assignment.
A Texas private-party vehicle bill of sale does not need to be notarized, and TxDMV does not require the title assignment to be notarized. The transfer is effected through the signed title assignment and Form 130-U, so signatures of the buyer and seller are sufficient.
Identify the vehicle by VIN, year, make, model, body style, and color, and identify the seller and buyer by name and address, with the sale price and the date of sale.
Texas Transportation Code Sec. 501.072 requires the seller to disclose the odometer reading at transfer in compliance with 49 U.S.C. 32705, except for vehicles exempt under federal rules. The disclosure is captured on the title or Form 130-U. Confirm current exempt-vehicle rules with TxDMV.
The motor vehicle sales tax rate is 6.25 percent. Under Texas Tax Code Sec. 152.0412, when the price paid is less than 80 percent of the vehicle's Standard Presumptive Value (SPV), the county tax assessor-collector computes the tax on 80 percent of SPV. A low stated price on the bill of sale cannot reduce the tax below that floor.
The SPV floor means tax is calculated on the greater of the actual sales price or 80 percent of the SPV shown for the day of the transaction. Buyers should expect the county to apply the SPV-based amount when the stated price is low, so the bill-of-sale price alone does not control the tax.
Title and register the vehicle at the county tax assessor-collector's office, which runs through the TxDMV system. Bring the signed title assignment and the completed Application for Texas Title and/or Registration (Form 130-U).
The vehicle must be titled in the buyer's name within 30 days from the date of sale. Keep the bill of sale with the title assignment and Form 130-U as supporting documentation when you title at the county office.
Frequently Asked Questions
A bill of sale is optional in Texas, not a requirement to transfer or title a private-party vehicle. The signed title assignment plus the Application for Texas Title and/or Registration (Form 130-U) effect the transfer. A bill of sale is recommended supplementary documentation that records the price, the odometer reading, and the as-is terms, but it is not a TxDMV titling prerequisite. Vehicles must be titled in the buyer's name within 30 days from the date of sale.
No. A private-party vehicle bill of sale in Texas does not need to be notarized, and TxDMV has no requirement that the title assignment be notarized either. The transfer is effected through the signed title assignment and the Application for Texas Title and/or Registration (Form 130-U). A signed bill of sale that identifies the vehicle, the price, the odometer reading, and both parties is sufficient documentation of the sale.
There is no official Texas form for a standard private-party vehicle bill of sale. The TxDMV publishes only specialty forms, the Bill of Sale for a Junk Motor Vehicle (Form VTR-203) and the Component Part(s) Bill of Sale (Form VTR-63). The document that transfers and titles a standard used vehicle is the Application for Texas Title and/or Registration (Form 130-U) together with the signed title assignment, not a bill of sale.
Texas motor vehicle sales tax is 6.25 percent. For a private-party used-vehicle sale, the county tax assessor-collector computes the tax on the greater of the actual sales price or 80 percent of the vehicle's Standard Presumptive Value (SPV). If the price paid is less than 80 percent of SPV, the tax is figured on that 80%-of-SPV amount, so a low stated price on the bill of sale cannot reduce the tax below the SPV floor.
You title and register a vehicle in Texas at your county tax assessor-collector's office, which runs through the TxDMV system. The vehicle must be titled in the buyer's name within 30 days from the date of sale. You bring the signed title assignment and the completed Application for Texas Title and/or Registration (Form 130-U), and you pay the 6.25 percent motor vehicle sales tax computed under the Standard Presumptive Value rules.
A Texas vehicle bill of sale should identify the seller and buyer, describe the vehicle by VIN, year, make, model, body style, and color, state the sale price, record the odometer reading and disclosure, state that the vehicle is sold as-is unless a warranty is given, and include the date of sale and both signatures. Texas does not require notarization. Keep it with your title assignment and Form 130-U when you title the vehicle within 30 days at the county tax assessor-collector.