Free Maryland Bill of Sale Template & Generator

Maryland Bill of Sale Requirements

Additional Forms Required in Maryland

• Form VR-005 (Application for Certificate of Title)
• Notarized MVA bill of sale — below-book-value tax route, repealed effective October 1, 2026

Maryland taxes vehicles through a 6.5% titling excise tax — a rate that rose from 6% on July 1, 2025 under Md. Transportation §13-809, a change many online guides still haven't caught. The tax base depends on the vehicle's age. For a used vehicle less than 7 years old bought from a private seller, the MVA taxes the purchase price if it is less than $500 below book value, and the book value if the price is $500 or more below it; for a vehicle 7 years and older, the greater of the price or $640.

That $500 line is where Maryland's old conditional notary rule lived. Until September 30, 2026, a buyer of a vehicle under 7 years old at $500 or more below book value could have the tax figured on the actual price by submitting the MVA's own notarized bill of sale. That route was repealed effective October 1, 2026 (2026 Md. Laws Ch. 118/119): from that date no notary is needed, and the MVA taxes the book value in that situation unless the buyer documents the lower price. Its list of acceptable evidence includes a bill of sale, payment records such as a canceled check or bank statement, and the ad showing the price. A routine sale needs no notary, and the title assignment itself carries no notary requirement. And a bill of sale should not be confused with VR-005, the Application for Certificate of Title that the buyer files to get the title itself.

The cost of titling rose too: the Maryland title fee is now $200, up from $100 effective September 1, 2025. That is on top of the excise tax and registration fees paid at the MVA.

Maryland is a safety-inspection state, and the timing matters for a sale. A used vehicle must pass inspection at one of roughly 1,600 licensed stations before the MVA issues full registration. If the vehicle has not been inspected yet, the buyer can get a 30-day temporary registration to drive it to a station — so a seller who provides a recent passing inspection certificate makes the transaction noticeably smoother.

Between the $500-below-book tax rule, the repeal of the notarized bill-of-sale route effective October 1, 2026, and the inspection gate, Maryland rewards getting the paperwork exactly right. Document the true price, keep the vehicle's age in mind when estimating tax, and settle who handles the safety inspection before agreeing on a number.