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 form that matters is 130-U (Application for Texas Title and/or Registration); a bill of sale is optional for a titled vehicle. 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 is still taxed on 80% of SPV ($7,200), not $3,000.
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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
Since January 1, 2025, non-commercial vehicles no longer need a safety inspection. Emissions testing is still required before registration in 17 counties in the DFW, Houston, Austin, and El Paso areas, and a $7.50 inspection replacement fee is paid at registration.
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: a written 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 and photo ID, and pass an emissions test first if the vehicle will be registered in one of the 17 emissions counties
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 a separate, 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 emissions test in one of the 17 emissions counties — the vehicle must pass it before registration
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.