Free Texas Car Bill of Sale
Texas vehicle sales revolve around one number: the Standard Presumptive Value (SPV). The TxDMV taxes the buyer on the greater of the sale price or 80% of SPV, so an artificially low bill of sale doesn't reduce taxes unless paired with a licensed appraisal. Form 130-U is the core document, and you have 30 days to transfer after sale.
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Texas Car Bill of Sale — What You Need to Know
Sales Tax Details
Texas charges 6.25% Motor Vehicle Sales Tax (MVST) calculated on the greater of the sale price or 80% of the Standard Presumptive Value (SPV). This is critical — selling under SPV doesn't reduce the buyer's tax bill unless they file a Motor Vehicle Appraisal Form (Form 14-128).
Inspection Requirements
Since January 1, 2025, non-commercial vehicles no longer need a safety inspection. Vehicles registered in 17 counties (Harris, Dallas, Tarrant, Travis, El Paso and others) must still pass an emissions inspection before registration, and every registration includes a $7.50 inspection replacement fee.
Texas Car Sale — Step-by-Step Checklist
- If the buyer will register the car in one of the 17 emissions counties, the car must pass an emissions test before registration; ask the seller for the latest Vehicle Inspection Report (no safety inspection is needed for non-commercial vehicles since 2025).
- Both parties complete a bill of sale with VIN, odometer, sale price, and signatures.
- Seller signs the Texas title over to buyer, completing the odometer disclosure section.
- Buyer completes Form 130-U (Application for Texas Title) — it's the single most important Texas form.
- Seller files Vehicle Transfer Notification online at txdmv.gov within 30 days to release liability.
- Buyer takes the signed title, 130-U, any supporting documents (such as a lien release), valid ID, and proof of TX liability insurance to any county tax office within 30 days — a bill of sale is not required for a titled vehicle.
- Buyer pays 6.25% MVST based on greater of sale price or 80% SPV, plus a $28 or $33 title fee (depending on county) and local registration fees.
- If sale price is <80% SPV and buyer wants to tax on actual price: file Form 14-128 (Motor Vehicle Appraisal) from a licensed dealer or insurance appraiser.
Common Pitfalls
- Ignoring the SPV rule: a $3,000 sale on a $6,000 SPV car still gets taxed on $4,800 (80% of SPV) unless Form 14-128 is filed.
- Skipping Vehicle Transfer Notification: Texas sellers have been billed for toll violations for years after selling without this filing.
- Skipping the emissions test in one of the 17 emissions counties — the car cannot be registered there until it passes.
- Using a Texas title with a missing or incorrect signature — the TxDMV requires the printed name and date to match exactly.
Pro Tip
Three numbers define a Texas car sale: the sale price, 80% of SPV, and the greater of the two. Know your SPV before negotiating, file Vehicle Transfer Notification the day you sell, and the rest is just paperwork at the county tax office.