Free Delaware Vehicle Bill of Sale
Delaware sells vehicles under one of the country's most misunderstood tax setups: there is NO state sales tax, but the DMV collects a 4.25% Document Fee on the higher of sale price or NADA book value when you title the vehicle. A Delaware vehicle bill of sale (Form MV-213) records the transaction and pairs with Form MV-212 (Application for Title) at the DMV lane. Buyers crossing state lines for Delaware's tax-free reputation often miss the Doc Fee and the Delaware-address requirement for titling. This guide walks Delaware buyers and sellers through MV-213, the 4.25% Doc Fee math, biennial DMV-lane inspection, and the title transfer steps that close the deal cleanly.
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Delaware Vehicle Bill of Sale — What You Need to Know
Sales Tax Details
Delaware has NO state sales tax, but charges a 4.25% Document Fee on vehicle title transfers, calculated on the NADA value or sale price (whichever is higher), with a $5 minimum. The Doc Fee is NOT a sales tax and cannot be deducted as state sales tax on federal returns.
Exemption: Bona fide gifts between immediate family members can avoid the Document Fee using Form MV-213 with the Affidavit of Gift section completed.
Inspection Requirements
Biennial inspection at DMV lanes only (no private shops). New Castle and Kent counties require safety + emissions; Sussex County is safety-only. Inspection is free at the DMV.
Registration
Registration for this vehicle type is handled by Delaware DMV — not the same agency that handles cars in Delaware. Plan for separate filings.
Delaware Vehicle Sale — Step-by-Step Checklist
- Complete Delaware DMV Form MV-213 (Bill of Sale and Affidavit of Gift) with full names, addresses, VIN, sale date, and exact sale price.
- Have the seller sign and date the back of the Delaware title in the assignment section, including the odometer reading for vehicles under 20 years old.
- Calculate the 4.25% Document Fee on the higher of your sale price or NADA value — bring a check or card to cover it at the DMV lane.
- Schedule a DMV inspection lane visit; New Castle and Kent require emissions plus safety, Sussex is safety-only, and all are free.
- Bring proof of Delaware insurance meeting state minimums (25/50/10 liability plus PIP) — the DMV will not title without it.
- Submit MV-212, MV-213, the assigned title, insurance card, and ID at the DMV within 30 days to avoid late penalties.
- Remove your plates before handover — Delaware plates stay with the seller, not the vehicle.
Common Pitfalls
- Assuming "no sales tax" means "no tax at all" — the 4.25% Document Fee on a $20,000 vehicle is $850, not $0, and it surprises nearly every first-time Delaware titler.
- Reporting a sale price below NADA book value: the DMV will assess the Doc Fee on the higher figure anyway, so lowballing the bill of sale saves nothing and can flag fraud.
- Out-of-state buyers crossing into Delaware to "save tax" then discovering they need a Delaware residential address to title — vehicles must be titled in your state of residence.
- Skipping the 30-day titling window triggers a $20 late fee plus potential registration penalties, and the seller remains liable for the vehicle until transfer completes.
Pro Tip
Two numbers matter most in Delaware: 4.25% (the Document Fee) and 30 (days you have to title). Get those right, file MV-213 honestly, and the rest is just a free trip through the DMV inspection lane.