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Buying a car from a private seller: title, tax and registration

Buying a car from a private seller can save money, but there is no dealer to handle the paperwork or collect the tax. That becomes your job, and the order you do it in matters.

Maintained by State Fee Calculator, an independent reference site. Figures checked against each state's own published fee schedule on . How we check

Before you pay a private seller

  • Check the title against the seller. The name on it should match the seller's ID. If it does not, you may be buying from someone who cannot legally sell the car.
  • Check the VIN. The vehicle identification number on the title should match the one on the dashboard and the driver's door frame.
  • Look for a lender. If the title shows a lienholder, the loan has to be paid off and released, or you cannot get a clean title in your name.
  • Make sure there is a title. A seller who cannot hand one over leaves you facing a bonded title or a court order, which takes weeks and costs money of its own.
  • Look at the title brand. Words such as salvage, rebuilt or flood on the title change the car's value and, in some states, what it takes to register it.

At the handover

  • The title, signed by the seller in the right place, with the odometer reading if your state records it there.
  • A bill of sale with the price, the date, the VIN and both signatures. Even where it is not required, it is your proof of what you paid.
  • A lien release, if the car was ever financed.
  • The plates question. In some states the plates stay with the seller, in others they go with the car. Settle it before you drive away; license plate transfer by state has each state's rule.

The tax you owe

With no dealer involved, the sales or use tax is collected when you title the car, usually on the price you paid. Some states will not take the price on trust. Texas can tax a private sale on its Standard Presumptive Value, and Massachusetts on the clean trade-in value, when that is higher than the price. Montana and New Hampshire charge no sales tax on cars at all. The tax is usually far bigger than the title fee, so it is the number to budget for. The car sales tax by state page has every state's rate.

Getting the car from a parent or spouse for nothing? That is a gift, not a private sale, and most states tax it far less. Gifting a car to a family member has the rule for each state.

The deadline to put it in your name

Every state gives you a limited time to transfer the title after the sale. Among the 35 states that publish a deadline, it runs from 10 days in Alaska to 60 days in Arkansas and Colorado and Delaware and District of Columbia and Kansas and New Hampshire and Vermont. The most common window is 30 days. Go past it and many states add a penalty, so do not let the paperwork sit. Every state's deadline is in the title transfer guide by state.

At the counter

Bring the signed title, the bill of sale, your ID, proof of insurance, and any inspection your state requires. You pay the tax, the title fee and the registration, and in most states you leave with plates or a temporary permit. If the car came from another state, expect a VIN check as well. The registration checklist covers what to bring in more detail.

Questions people ask

Do you pay sales tax on a private car sale?
In most states, yes. There is no dealer to collect it, so you pay it when you title and register the car. Montana and New Hampshire charge no sales tax on cars, so there is none to pay there. A state without a sales tax can still charge something similar under another name: Delaware, for one, charges a 5.25% document fee when you title the car. Some states also check the price against a book value and tax you on the higher figure if they think the price was too low.
How long do you have to register a car after buying it from a private seller?
It depends on the state. Among the 35 states that publish a deadline, it runs from 10 days in Alaska to 60 days in Arkansas and Colorado and Delaware and District of Columbia and Kansas and New Hampshire and Vermont, and 30 days is the most common. Miss it and many states add a penalty.
What paperwork do I need when buying a car privately?
The title signed over by the seller, a bill of sale showing the price and date, an odometer reading on the title or a separate statement, and a lien release if the car was ever financed. Some states also want their own application form or a bill of sale on a specific form.