Free Texas Used Car Bill of Sale
Used-car private-party purchases in Texas live or die by Standard Presumptive Value. You can hand-write a $2,500 bill of sale on a Tahoe, but when the buyer files Form 130-U at the county tax assessor-collector, TxDMV's SPV database flashes "$11,400" and the 6.25% tax is calculated on 80% of that ($9,120), not on what you actually paid. That is the single most common surprise in Texas used-car transfers. The fix — if the vehicle truly is worth less due to mechanical issues or body damage — is a certified appraisal on Form 14-128 from a licensed dealer or insurance adjuster.
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Texas Used Car Bill of Sale — What You Need to Know
Sales Tax Details
6.25% motor vehicle sales/use tax assessed on the higher of sale price or 80% of Standard Presumptive Value (SPV). The SPV check is the headline issue on used cars — TxDMV pulls market value automatically when you file 130-U.
Exemption: Even-trade transfers (vehicle-for-vehicle of equal value) pay only $5 even-trade tax. Family gifts via Form 14-317 pay $10. Otherwise, no exemption — the 6.25% applies on SPV-adjusted basis.
Inspection Requirements
Annual Texas safety inspection required before registration; emissions testing added in 17 metro counties (DFW, Houston, Austin, El Paso). The buyer must have a current passing inspection before the county will issue registration under the Two Steps One Sticker program.
Registration
Registration for this vehicle type is handled by County Tax Assessor-Collector (acting as TxDMV agent) — not the same agency that handles cars in Texas. Plan for separate filings.
Texas Used Car Sale — Step-by-Step Checklist
- Get the Texas title with seller's assignment, odometer disclosure, and printed names
- Complete Form 130-U at the county tax assessor-collector within 30 days
- Look up SPV at txdmv.gov before negotiating — know the tax floor
- If sale price is well below SPV due to condition, get Form 14-128 certified appraisal
- Sign a written bill of sale (VTR-901-A or private form) with VIN, date, mileage, both signatures
- Buyer pays 6.25% tax on higher of sale price or 80% SPV; bring funds to the tax office
- Pass safety/emissions inspection before registration under Two Steps One Sticker
Common Pitfalls
- Believing a low bill of sale beats SPV without a Form 14-128 appraisal — it doesn't
- Buying a car with a "title-loan" or "open" title (signed but not titled in seller's name) — Texas treats this as title jumping, a Class B misdemeanor
- Missing the 30-day window: $25 late fee plus 5-10% sales tax penalty plus monthly interest
- Trusting a verbal odometer statement — federal law requires written disclosure on the title for vehicles under 20 model years old
- Buyer drives the car home without filing — the seller is still on the hook for tolls, tickets, and red-light cameras until the title transfers
- Sellers forgetting to submit Vehicle Transfer Notification (VTR-346) within 30 days to release liability
Pro Tip
Used-car rule of thumb: look up SPV before you negotiate, file Form 130-U within 30 days at the county tax office, and the seller files VTR-346 the same day to dump liability.