Free North Dakota Vehicle Bill of Sale

North Dakota Vehicle Bill of Sale — What You Need to Know

Sales Tax Details

North Dakota does NOT charge general sales tax on vehicles. Instead, a 5% Motor Vehicle Excise Tax (MVET) is collected by NDDOT MVD at title transfer, calculated — under the statute — on the purchase price (less trade-in if from a dealer), though NDDOT's 2026 private-party bill of sale form (SFN 62502) says the tax is based on fair market value. MVET applies to both dealer and private-party sales — there is no private-party loophole.

Exemption: MVET does not apply to a gift between spouses, parent and child, siblings, or grandparent and grandchild. Ask NDDOT how to document the gift, and about any other exemption before relying on it.

Inspection Requirements

North Dakota is one of the no-inspection states — there is no statewide safety or emissions inspection for passenger vehicles. The trade-off is that buyers carry 100% of the mechanical risk: NDDOT will happily title a truck with no brakes. Pay for an independent pre-purchase inspection on anything older or higher-mileage; rural ND winters are unforgiving on cooling systems, batteries, and undercarriages.

Registration

Registration for this vehicle type is handled by North Dakota Department of Transportation, Motor Vehicle Division (NDDOT MVD) — not the same agency that handles cars in North Dakota. Plan for separate filings.

North Dakota Vehicle Sale — Step-by-Step Checklist

1. Use NDDOT's Private Party Vehicle Bill of Sale (SFN 62502) or include all the same fields: full names and addresses of both parties, year/make/model, VIN, odometer reading, sale price, and date.
2. Confirm the VIN on the title matches the dash plate AND the door-jamb sticker before signing or paying.
3. Have the seller sign the title assignment on the back and complete the odometer disclosure (federal requirement on vehicles of model year 2011 or newer).
4. If the vehicle is a gift between spouses, parent and child, siblings, or grandparent and grandchild, ask NDDOT how to claim the gift exemption.
5. Submit SFN 2872 with the assigned title, the $5 transfer fee, and the tax within 30 days of receiving the endorsed title.
6. Plan one trip — not two — to the motor vehicle office; ND offices are spread out, so check the hours before you go.

Common Pitfalls

• Writing "$1" or "gift" on a non-family sale: NDDOT's private-party form says the 5% MVET is based on fair market value, so a token price is not a reliable way to cut the tax — and only qualifying family gifts are exempt.
• Skipping the odometer disclosure on a vehicle of model year 2011 or newer — federal law (and ND) requires it, and an incomplete title will not transfer.
• Assuming "no inspection" means "no problems." A salvage or rebuilt vehicle may need an inspection before titling — ND requires a certificate of inspection from a registered repair business and a VIN check before it retitles a reconstructed salvage vehicle.
• Paying 5% MVET unnecessarily on a qualifying family gift (spouse, parent and child, siblings, grandparent and grandchild) because the exemption was never claimed.
• Buying a vehicle with a prior out-of-state lien still showing — until the lien release is in hand, NDDOT will not issue a clean ND title.

Pro Tip

Get the price right, get the signatures right, and budget for one round-trip to your motor vehicle office with all your paperwork in a folder. ND vehicle transfers are simple when the bill of sale is clean.

North Dakota Vehicle Bill of Sale — FAQs