Free Oregon Car Bill of Sale
Oregon has no sales tax — buying a car privately in Oregon means $0 in sales tax. Title transfer happens at Oregon DMV within 30 days using the seller-signed title. No mandatory bill of sale form, but a written record is strongly advised.
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First time selling a car privately? Our complete guide covers how to verify the buyer, which payment methods are safe, what paperwork the DMV actually needs, and the odometer disclosure mistake that can make a transaction legally void. Read: Car Bill of Sale: Complete Guide →
Oregon Car Bill of Sale — What You Need to Know
Primary Form
735-501
Vehicle Bill of Sale
Primary ID Field
VIN
Sales Tax
Exempt
Title Required
Yes
Oregon title must be transferred within 30 days. The seller signs either the title or a bill of sale; a bill of sale is required when the seller's name is not on the title and strongly recommended otherwise.
Inspection
Not required
Sales Tax Details
Oregon has NO state sales tax, and a private-party vehicle sale is not taxed. Buyers pay $0 in sales tax.
Inspection Requirements
Oregon does not require a state safety inspection or emissions test at time of sale.
Oregon Car Sale — Step-by-Step Checklist
- Prepare a written bill of sale with VIN, year, make, model, odometer, sale price, buyer/seller names and addresses.
- Seller signs the title over to buyer.
- Seller notifies DMV of the sale online through DMV2U within 10 days (records the sale date on the seller's record).
- Buyer takes the title (plus a bill of sale if the seller's name is not on the title) to Oregon DMV within 30 days.
- Buyer pays title fee ($101–$116 by MPG rating; $192 if all-electric) + registration fees — NO sales tax.
Common Pitfalls
- Seller forgetting to notify DMV of sale online — they remain liable for parking tickets and accidents if they don't.
- Thinking there is hidden "use tax" — Oregon genuinely has no sales or use tax on private vehicle sales.
- Missing the 30-day title transfer window.
- Oregon out-of-state buyers: if you buy in OR and bring the car to a sales-tax state, you may owe that state's use tax.
- Fixing a mistake on Form 735-501 with white-out or a line through a name. DMV wants blue or black ink only, so start a clean form instead.
Pro Tip
OR car: no sales tax + seller DMV notification + 30-day title transfer.
Oregon Car Bill of Sale — FAQs
Is there really no sales tax on cars in Oregon?
Correct. Oregon has no state sales tax, and a private-party vehicle sale is not taxed (the 0.5% vehicle privilege tax applies only to certain low-mileage vehicles bought from dealers). Buyers pay $0 in sales tax. Oregon's revenue comes from income tax instead.
What is Oregon's "Notify DMV of Sale"?
Oregon sellers can (and should) report a private sale online at the Oregon DMV website. DMV notes the sale on the seller's record, which helps show that later tickets and tolls belong to the buyer. The seller stays listed as owner until the buyer transfers the title.
Is a bill of sale needed to title a car bought in Oregon?
Only when the person who sold you the car is not named on the title. For example, the seller bought it and never titled it in their own name. In that case, bring the title released by the owners printed on it, plus a bill of sale signed by the person you paid. When the seller is on the title, they can simply sign and date the back of it instead.
Who keeps the original bill of sale after an Oregon car sale?
The buyer, when the bill of sale goes in with the title application. Form 735-501 says DMV will not accept photocopies of original signatures, so the buyer needs the copy signed in ink. The seller should keep a copy for their records along with the DMV2U notice of sale.
How do I sell a car in Oregon that I still have a loan on?
Pay off the loan first. Oregon DMV says you cannot sell, donate, or gift a vehicle while the loan is unpaid. Ask your lender how its payoff works. After payoff, the lender either signs the front of the title or gives you a separate signed statement releasing its interest. Hand that to the buyer with the title.