$BillOfSale.app

Free Maryland Vehicle Bill of Sale

A Maryland vehicle bill of sale is the receipt that documents what you paid, who sold the vehicle, and the VIN — and in Maryland it doubles as the document the MVA uses to calculate your 6% titling tax. The state-published form is VR-181, and there is a unique Maryland twist: if the sale price is below the book value and the vehicle is less than 7 years old, the bill of sale must be NOTARIZED for the MVA to accept the lower sale price for tax purposes. Get this wrong and you will pay tax on book value instead of what you actually paid.

Maryland Requirements: Transfer title within 60 days. 6% sales tax.

Seller Information

Buyer Information

Vehicle Details

Sale Information

Condition & Warranty

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Maryland Vehicle Bill of Sale — What You Need to Know

Primary Form
Bill of Sale
Agency
Maryland Motor Vehicle Administration
Primary ID Field
VIN
Sales Tax
0.06%
Title Required
Yes
Seller signs and dates the Maryland Certificate of Title in the assignment section, including the odometer disclosure. Buyer completes the title application (VR-005) and submits with the assigned title within 60 days of sale to avoid late title penalties.
Inspection
Required

Sales Tax Details

Maryland charges a 6% titling tax on the purchase price (or book value if higher). Paid at the MVA when titling. If the sale price is less than the published book value AND the vehicle is less than 7 years old, a NOTARIZED bill of sale (VR-181) is required to use the actual sale price — otherwise tax is calculated on book value.

Exemption: Family transfers between spouse, parent, child, sibling, grandparent, or grandchild are exempt from the 6% titling tax with a completed gift certification (form VR-103) and proof of relationship.

Inspection Requirements

Maryland requires a one-time safety inspection at a state-certified inspection station before titling any used vehicle. The inspection certificate is valid for 90 days. Most counties also require Vehicle Emissions Inspection Program (VEIP) testing every two years after registration.

Registration

Registration for this vehicle type is handled by Maryland Motor Vehicle Administration (MVA) — not the same agency that handles cars in Maryland. Plan for separate filings.

Maryland Vehicle Sale — Step-by-Step Checklist

  1. Complete VR-181 with full name and address of buyer and seller, sale date, and purchase price
  2. List year, make, model, body style, and 17-character VIN exactly as shown on the title
  3. Record the odometer reading and check the appropriate brand (actual, exceeds limits, not actual)
  4. If price is below book value AND vehicle is less than 7 years old, sign VR-181 in front of a notary
  5. Seller signs and assigns the Maryland Certificate of Title to the buyer with matching odometer reading
  6. Submit the assigned title, bill of sale, title application (VR-005), inspection certificate, and 6% titling tax to the MVA within 60 days
  7. Both parties keep a signed copy for their records

Common Pitfalls

  • Failing to notarize VR-181 when sale price is below book value on a vehicle under 7 years old — MVA will tax you on book value
  • Missing the 60-day title transfer deadline, which triggers a $20 late title fee plus possible additional penalties
  • Skipping the one-time Maryland safety inspection — MVA will not title a used vehicle without a valid certificate
  • Odometer reading on the bill of sale not matching the title assignment, causing MVA rejection
  • Out-of-state buyers assuming Maryland tax does not apply — Maryland residents owe the 6% regardless of where the seller lives
  • Listing "$1" or "gift" on the bill of sale without filing a proper VR-103 gift certification, which the MVA will flag

Pro Tip

Generate your Maryland VR-181 bill of sale with our builder, then take it (notarized if required), the assigned title, your inspection certificate, and VR-005 to any Maryland MVA branch within 60 days of purchase.

Maryland Vehicle Bill of Sale — FAQs

When does my Maryland bill of sale have to be notarized?
Maryland requires a notarized bill of sale (VR-181) only when the sale price you report is less than the vehicle's book value AND the vehicle is less than 7 years old. In that situation, both buyer and seller must sign in front of a notary so the MVA will accept the lower sale price as the basis for the 6% titling tax. If the price is at or above book value, or the vehicle is 7 years old or older, notarization is not required — though many sellers still notarize as a fraud precaution.
How is the 6% Maryland titling tax calculated?
The 6% titling tax is applied to the purchase price OR the published book value of the vehicle, whichever is greater. The MVA references the National Automobile Dealers Association (NADA) clean retail value. If you paid less than book value and the vehicle is under 7 years old, you must submit a notarized VR-181 to have the lower price honored — otherwise the tax is computed on book value. The minimum titling tax in Maryland is $38.40 regardless of price.
Do I need a Maryland safety inspection before transferring title?
Yes. Maryland requires a one-time safety inspection of any used vehicle being titled in the state, performed at an MSP-licensed inspection station. The certificate is valid for 90 days from issuance and must be presented at the MVA when applying for the title. This is separate from VEIP emissions testing, which is required every two years after registration in most Maryland counties. New vehicles purchased from a Maryland dealer are exempt from the initial safety inspection.
Can I gift a vehicle to a family member without paying the 6% tax?
Yes, Maryland exempts transfers between immediate family members — spouse, parent, child, stepparent, stepchild, sibling, grandparent, or grandchild — from the 6% titling tax. You must complete form VR-103 (Application for Maryland Gift Certification), have it notarized, and submit it with the title transfer. Both parties certify the relationship and that no money or other consideration changed hands. Without VR-103 the MVA will treat it as a regular sale and assess tax on book value.