Maryland Bill of Sale — and Form VR-005 Explained

About These Forms

Covers: Maryland Bill of Sale — and Form VR-005 Explained

Agency: Maryland Motor Vehicle Administration

Purpose: A bill of sale documents the private sale and the price. VR-005 is the title application filed with the assigned title.

When required: The MVA lists a bill of sale "if applicable". The notarized bill of sale route for the excise tax was repealed effective October 1, 2026: a used vehicle under 7 years old sold $500 or more below book value is taxed on book value. Apply for title promptly — the MVA may add a service fee after 30 days from delivery. The title fee is $200.

What VR-005 asks for

• Applicant and co-applicant: names, Maryland driver license or ID number (or SOUNDEX number), date of birth, street address, county, phone and email.
• Ownership: whether the vehicle is titled to joint tenants or tenants by the entireties. Both give the survivor full ownership; only spouses can choose tenants by the entireties.
• A business or trust gives its FEIN, the type of entity, and proof that it legally exists.
• Vehicle description: new or used, year, make, model, body style and VIN, plus extra details for trucks, buses, motorcycles and trailers.
• Liens: write "NONE" if there is no loan. Each lien needs Form VR-217 and a lien filing fee.
• Purchase information for tax purposes, and the odometer reading with no tenths.
• What you are applying for: new tags, a transfer of your tags, a 30-day inspection plate, or title only, and your insurance company, policy or binder number and agent.

What you certify when you sign

• That you compared the VIN on the application with the one on the vehicle, and they match.
• That the vehicle has only the liens listed on the form.
• If you get new plates or transfer plates: that the vehicle has at least Maryland's minimum insurance, and will stay insured for the whole registration period.

Documents for a used vehicle

• From a title state: an out-of-state title in your name, or a properly assigned title.
• From a non-title state or another country: the registration (or a verification of it, if the seller or you are the owner shown), plus a bill of sale.
• A safety inspection certificate from an authorized Maryland station, unless you ask for a temporary inspection plate.
• Insurance from a company licensed in Maryland, with at least the minimum liability limits.

Tax, fees and timing from October 1, 2026

Maryland charges a 6.5% titling excise tax. A used vehicle under 7 years old sold $500 or more below book value is taxed on book value; a vehicle 7 or more years old is taxed on the greater of the price or $640. The title fee is $200.

Apply promptly: if the MVA does not get the title and application within 30 days after delivery, it may add a service fee. Older printed copies of VR-005 still describe the notarized bill of sale route for below-book sales, which ended on September 30, 2026.

What to Include in a Maryland Bill of Sale

A complete bill of sale usually includes:

• Seller name, address
• Buyer name, address
• Year, make, model
• VIN
• Odometer
• Sale price
• Date of sale
• Both signatures