Free Vermont Vehicle Bill of Sale
Vermont treats the bill of sale as the cornerstone of every vehicle transfer — even for the surprising number of older cars that move on no title at all. Because Vermont only titles vehicles 15 model years old or newer, a 1995 pickup or a 2008 hatchback may legitimately change hands with just Form VT-005, the prior Vermont registration, and Form VT-016. The 6% Purchase and Use Tax is calculated by VT DMV at the counter using the higher of your bill-of-sale price or NADA book value, and you have 15 days from the date of sale to file before late penalties attach. A clean VT-005 with VIN, odometer, price, and signatures keeps the transaction defensible if VT DMV ever audits the valuation.
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Vermont Vehicle Bill of Sale — What You Need to Know
Sales Tax Details
Vermont charges a 6% Purchase and Use Tax on motor vehicles, collected by the VT DMV at title transfer. Tax is calculated on the higher of sale price or NADA clean trade-in value, so a low number on the bill of sale will not reduce tax owed.
Exemption: Family transfers between spouses, parents, children, siblings, and grandparents are exempt with a signed family-transfer affidavit filed with VT-016.
Inspection Requirements
Vermont requires an annual safety inspection at a VT-certified inspection station before registration; the sticker goes on the windshield. Vermont does not run an emissions program for most light-duty vehicles.
Vermont Vehicle Sale — Step-by-Step Checklist
- Use Form VT-005 (Vermont Bill of Sale) with full VIN, year, make, model, odometer reading, sale price, and date
- Print and sign both buyer and seller names; Vermont does not require notarization for VT-005
- For titled vehicles (15 years old or newer), have the seller complete the assignment on the back of the Vermont title
- For older vehicles with no title, attach the prior Vermont registration to the bill of sale
- File Form VT-016 with VT DMV within 15 days of the sale to register, title, and pay 6% Purchase and Use Tax
- Schedule a Vermont annual safety inspection at a certified station before driving past the temporary period
Common Pitfalls
- Writing a low "gift" or "favor" price — VT DMV taxes on NADA book value when the bill of sale undercuts it, so you pay 6% either way
- Missing the 15-day filing deadline at VT DMV, which adds late title penalties on top of the Purchase and Use Tax
- Assuming a no-title vehicle is junk — Vermont legitimately moves 15+ year-old cars on bill of sale plus prior registration
- Forgetting the annual Vermont inspection sticker; troopers ticket on expired stickers and registration cannot renew without one
Pro Tip
Vermont’s bill-of-sale process is straightforward but unforgiving on deadlines: 15 days to file, 6% tax on book value, and a current inspection sticker before you drive. Use Form VT-005, file VT-016 promptly, and keep your copies — VT DMV audits valuations years after the fact.