Indiana Vehicle Bill of Sale

Is a bill of sale required to sell a car in Indiana?

Yes. Indiana requires a bill of sale for private-party vehicle sales. The BMV publishes an official Bill of Sale form (State Form 44237) that must be completed and signed by both the buyer and the seller. The bill of sale documents the purchase price, which the BMV uses to calculate the 7% sales tax at the time of title transfer. The purchase price on the bill of sale must match the price recorded on the title assignment — a discrepancy between the two will create processing issues at the BMV branch.

A bill of sale alone does not transfer vehicle ownership. The seller must also properly endorse the certificate of title by completing the assignment section on the back, including the buyer's name and address, the date of sale, the sale price, and the odometer reading. Both the signed title and the bill of sale are required for the buyer to apply for a new title at a BMV branch office.

Does an Indiana bill of sale need to be notarized?

No. Indiana does not require notarization of a vehicle bill of sale or the title assignment for standard private-party transfers. The signatures of both the buyer and seller on the bill of sale and the title are sufficient. A separate Odometer Disclosure Statement (Form 43230) may be required and must be signed by both parties, but it also does not require notarization.

What information does an Indiana vehicle bill of sale need to include?

The BMV's Form 44237 requires the full legal names and addresses of both the buyer and seller, the date of sale, the purchase price, and the vehicle's year, make, model, body style, color, and Vehicle Identification Number (VIN). The odometer reading must be certified either on the title assignment or on a separate Odometer Disclosure Statement (Form 43230). Federal odometer disclosure requirements under 49 CFR Part 580 apply to vehicles less than 20 model years old.

What taxes and fees does the buyer owe?

Indiana charges a flat 7% sales tax on the purchase price of a vehicle, collected at the BMV branch office at the time of title transfer. The title fee is $15. If the buyer fails to complete the title transfer within 31 days of the assignment date, a $30 administrative penalty is assessed on top of the standard fees. After 60 days, the penalty increases further and the buyer may need to provide a notarized affidavit explaining the delay. Transfers between qualifying family members may be exempt from sales tax with proper documentation (Form 48841).

What should the seller do after the sale?

The seller must remove their license plates from the vehicle before delivery. Indiana plates belong to the owner, not the vehicle — the seller can transfer the plates to another vehicle or let them expire. The BMV does not require the seller to file a separate notice of sale, but the seller is required under MCL §9-17-3-3.4 to deliver the endorsed title to the buyer at the time of sale. The BMV strongly recommends that both parties visit a branch office together to complete the transfer on the spot, because the title remains in the seller's name until the buyer submits the transfer application.