Free Texas Vehicle Bill of Sale
Texas runs vehicle titling through the Texas Department of Motor Vehicles (TxDMV), but you do not actually go to TxDMV — you go to your county tax assessor-collector, who acts as TxDMV's agent. The two forms that matter are 130-U (Application for Texas Title and/or Registration) and the optional state-published VTR-901-A bill of sale. Texas's Standard Presumptive Value (SPV) system is the trap most buyers walk into: the state looks up your vehicle's market value and taxes you on the higher of SPV or sale price, so a $3,000 bill of sale on a $9,000 SPV pickup still gets taxed at $9,000 (or 80% of SPV minimum).
Free PDF includes a small watermark at the bottom. Remove it for $4.99.
Texas Vehicle Bill of Sale — What You Need to Know
Sales Tax Details
Texas charges a flat 6.25% motor vehicle sales/use tax. Counties do NOT add to vehicle sales tax (unlike most goods). Tax is calculated on the sale price OR the Standard Presumptive Value (SPV), whichever is higher — with an 80% SPV minimum floor.
Exemption: Family gift transfers (parent, child, sibling, spouse, grandparent, grandchild) pay a flat $10 gift tax instead of 6.25% sales tax — file Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) alongside Form 130-U.
Inspection Requirements
Annual safety inspection required statewide (DPS-administered) plus emissions testing in DFW, Houston, Austin, and El Paso metro counties. Texas runs the "Two Steps, One Sticker" program — pass inspection, then registration sticker on the windshield serves as proof of both.
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 Vehicle Sale — Step-by-Step Checklist
- Complete Form 130-U (Application for Texas Title and/or Registration) — the central title form
- Optional but recommended: Form VTR-901-A (Texas Bill of Sale) signed by both parties
- Seller signs the assignment on the back of the Texas title; record exact odometer reading
- Buyer files within 30 days at the county tax assessor-collector office (not TxDMV directly)
- Pay 6.25% motor vehicle sales tax on the higher of sale price or 80% of SPV
- Family gift? File Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) for $10 flat gift tax
- Bring proof of insurance, photo ID, and pass current Texas safety inspection
Common Pitfalls
- Writing a low sale price expecting low tax — TxDMV uses Standard Presumptive Value lookup; you pay tax on the higher of price or 80% SPV regardless of bill of sale
- Missing the 30-day transfer deadline: $25 fine plus penalty interest, accumulating monthly
- Calling Form 130-U a "bill of sale" — it is the title application; the bill of sale is VTR-901-A or a private document
- Going to a TxDMV regional service center for routine titling — they don't process it; the county tax assessor-collector does
- Claiming "gift" without filing Form 14-317 — TxDMV will assess full 6.25% sales tax on SPV
- Skipping the safety inspection before registration — under Two Steps One Sticker you must pass inspection first
Pro Tip
Bottom line: file Form 130-U at your county tax assessor-collector within 30 days, expect tax on Standard Presumptive Value not your bill of sale, and use Form 14-317 for family gifts to drop tax to $10.