$BillOfSale.app

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).

Texas Requirements: Transfer title within 30 days. 6.25% sales tax.

Seller Information

Buyer Information

Vehicle Details

Sale Information

Condition & Warranty

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Texas Vehicle Bill of Sale — What You Need to Know

Primary Form
Texas Bill of Sale
Agency
Texas Department of Motor Vehicles
Primary ID Field
VIN
Sales Tax
6.25%
Title Required
Yes
Seller signs the Texas title on the back; buyer files Form 130-U (Application for Texas Title and/or Registration) at the county tax assessor-collector office within 30 days. Late transfers carry a $25 fine plus penalties.
Inspection
Required

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

  1. Complete Form 130-U (Application for Texas Title and/or Registration) — the central title form
  2. Optional but recommended: Form VTR-901-A (Texas Bill of Sale) signed by both parties
  3. Seller signs the assignment on the back of the Texas title; record exact odometer reading
  4. Buyer files within 30 days at the county tax assessor-collector office (not TxDMV directly)
  5. Pay 6.25% motor vehicle sales tax on the higher of sale price or 80% of SPV
  6. Family gift? File Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) for $10 flat gift tax
  7. 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.

Texas Vehicle Bill of Sale — FAQs

Where do I actually go to transfer a Texas title?
Your county tax assessor-collector office, not TxDMV. Although TxDMV is the titling agency, every county tax assessor-collector acts as TxDMV's agent for vehicle titling and registration. Bring Form 130-U, the signed title, your VTR-901-A bill of sale, proof of insurance, ID, current inspection, and payment for tax and fees. TxDMV regional service centers handle dealer issues, salvage, and bonded titles — not routine private-party transfers. Walking into a TxDMV office for a normal title transfer wastes a trip.
What is Standard Presumptive Value and why does my bill of sale not control the tax?
Texas uses Standard Presumptive Value (SPV) — TxDMV looks up your vehicle's market value in a state database and taxes you on the higher of your sale price or 80% of SPV. So if you bought a truck for $4,000 cash but SPV says it is worth $10,000, you pay 6.25% tax on $8,000 (80% of SPV), not on $4,000. SPV is meant to stop curbstoners from writing $1 bills of sale. The only way to beat SPV is a certified appraisal (Form 14-128) showing the vehicle is worth less due to damage.
My parent is gifting me their car — how do we avoid the 6.25% tax?
File Form 14-317 (Affidavit of Motor Vehicle Gift Transfer) along with Form 130-U at the county tax assessor-collector. Eligible relationships are spouse, parent/stepparent, child/stepchild, grandparent, grandchild, sibling, guardian, or decedent's estate. The transfer is taxed at a flat $10 gift tax instead of 6.25% sales tax. Both donor and recipient must sign Form 14-317, and it must be notarized or signed in the presence of a county tax assessor-collector employee. Skip Form 14-317 and the county will assess full SPV-based sales tax.
What happens if I miss the 30-day Texas title transfer deadline?
A $25 late transfer fine kicks in immediately at day 31, and penalty interest on unpaid sales tax begins accumulating: 5% if 1-30 days late, 10% if more than 30 days late, plus monthly interest. The seller's name remains on the title — meaning toll violations, parking tickets, and even crimes committed in the vehicle still trace back to them. Sellers should file a Vehicle Transfer Notification (VTR-346) within 30 days to release liability if the buyer drags their feet. File at vtr.txdmv.gov.