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 records the price the MVA starts from when it calculates your 6.5% titling tax. The MVA asks for a bill of sale "if applicable" rather than for every sale. The Maryland twist is the $500 line: for a used vehicle less than 7 years old, a price $500 or more below book value is taxed on book value unless the buyer documents the lower price (for example, a bill of sale plus a canceled check or bank statement). Until September 30, 2026, a notarized MVA bill of sale let the buyer be taxed on the lower price in that case; that route was repealed effective October 1, 2026.
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Maryland Vehicle Bill of Sale — What You Need to Know
Sales Tax Details
Maryland charges a 6.5% titling tax, paid at the MVA when titling. For a used vehicle less than 7 years old bought privately, the tax is on the purchase price if it is less than $500 below book value, and on book value if the price is $500 or more below it. Until September 30, 2026, a notarized MVA bill of sale could get the lower price accepted in that case; that route was repealed effective October 1, 2026.
Exemption: Some family gifts may be exempt from the 6.5% titling tax — confirm eligibility and the gift paperwork the MVA requires.
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
- Complete a bill of sale with full name and address of buyer and seller, sale date, and purchase price
- List year, make, model, body style, and 17-character VIN exactly as shown on the title
- Record the odometer reading and check the appropriate brand (actual, exceeds limits, not actual)
- If the price is $500 or more below book value on a vehicle less than 7 years old, expect tax on book value — the notarized bill-of-sale route for that case was repealed effective October 1, 2026
- Seller signs and assigns the Maryland Certificate of Title to the buyer with matching odometer reading
- Submit the assigned title, bill of sale (if applicable), title application (VR-005), inspection certificate, and 6.5% titling tax to the MVA promptly — within 30 days of delivery to avoid a possible service fee
- Both parties keep a signed copy for their records
Common Pitfalls
- Expecting a low price to set the tax on a vehicle under 7 years old — if it is $500 or more below book value, the MVA taxes book value unless you document the lower price (the notarized bill-of-sale exception was repealed effective October 1, 2026)
- Missing the 30-day mark after delivery, after which the MVA may assess an additional service fee (Transportation §13-112(c))
- 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 6.5% regardless of where the seller lives
- Listing "$1" or "gift" on the bill of sale for a real sale — ask the MVA what paperwork a genuine family gift requires
Pro Tip
Generate your Maryland bill of sale with our builder, then take it, the assigned title, your inspection certificate, and VR-005 to any Maryland MVA branch promptly — within 30 days of delivery to avoid a possible service fee.