Free Michigan Vehicle Bill of Sale
A Michigan vehicle bill of sale documents the transfer of a car, truck, or motorcycle between private parties. While the signed title is the legal proof of ownership transfer, the bill of sale (Form TR-12 or equivalent) records the price, date, and odometer reading the SOS branch needs to assess 6% use tax and issue a new title under your name within the 15-day window.
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Michigan Vehicle Bill of Sale — What You Need to Know
Sales Tax Details
Michigan charges a flat 6% state sales tax (use tax) on the purchase price at titling. Michigan has no local vehicle sales tax add-ons, so the rate is the same statewide.
Exemption: Transfers between spouses, parents, children, siblings, stepchildren, grandparents, and grandchildren are exempt from the 6% use tax with proper documentation submitted at the SOS branch.
Inspection Requirements
Michigan does not require any state safety inspection or emissions test for vehicle transfer or registration. Even Detroit and the metro area have no emissions program, making MI unusual among populous states. A VIN verification may be required only on out-of-state vehicles or rebuilt-salvage titles.
Registration
Registration for this vehicle type is handled by Michigan Secretary of State (Michigan SOS) — not the same agency that handles cars in Michigan. Plan for separate filings.
Michigan Vehicle Sale — Step-by-Step Checklist
- Complete Form TR-12 (Michigan Bill of Sale) with full names and addresses of buyer and seller
- Record VIN, year, make, model, body style, and odometer reading on the date of sale
- List the actual purchase price — the SOS will compute 6% use tax from this figure
- Have the seller sign the title assignment on the back of the Michigan title
- Buyer takes title, bill of sale, ID, and proof of insurance to any SOS branch within 15 days
- Complete Form TR-11L (Application for Title and Registration) at the branch
- Pay 6% use tax, title fee, registration (plate) fee, and any transfer fees
Common Pitfalls
- Missing the 15-day deadline — late title transfers incur late fees and complicate registration
- Underreporting the purchase price — SOS may compare to market value and reassess use tax
- Forgetting the odometer disclosure on title and bill of sale (federally required for vehicles under 20 years old)
- Buyer driving without insurance — Michigan requires no-fault insurance before plates issue
- Assuming family transfers are automatically exempt — you must show relationship at the SOS counter or tax will be charged
Pro Tip
A Michigan bill of sale plus a properly assigned title gets you to the SOS counter ready to pay 6% use tax and walk out with plates the same day — provided you do it within 15 days of the sale.