Maryland Vehicle Bill of Sale

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

A bill of sale is not always required in Maryland, but it is strongly recommended and is required in specific situations. If the vehicle is less than 7 years old and the sale price is below the vehicle's book value, the buyer must submit a notarized MVA Bill of Sale (Form VR-181) signed by both parties. If the sale price is within $500 of the vehicle's retail value as listed in the National Publication of Used Car Values, the MVA will accept the price recorded on the title without a separate bill of sale. For vehicles older than 7 years, the price recorded on the title is generally sufficient.

Does a Maryland bill of sale need to be notarized?

Yes — when it is required. If the buyer submits an MVA Bill of Sale (Form VR-181), it must be notarized. The notary must witness the signatures of both the buyer and the seller. This requirement applies specifically when the buyer wants to base the excise tax on the sale price rather than the book value, or when the vehicle is less than 7 years old and selling below book value. If the sale price is recorded directly on the title and a separate bill of sale is not submitted, no notarization is needed.

What is the Maryland excise tax?

Maryland charges a 6% excise tax on the purchase of a vehicle, with a minimum tax of $38.40 (based on a minimum vehicle value of $640). For vehicles less than 7 years old, the tax is calculated on either the purchase price stated on a notarized bill of sale or the vehicle's book value, whichever is greater. For older vehicles, the tax is based on the purchase price. The excise tax is collected by the MVA at the time of title transfer.

The title fee in Maryland is $200 — one of the highest in the country. Combined with the excise tax, registration fees, and any applicable lien recording fees ($40), the total cost of titling a vehicle in Maryland can be substantial.

Is a safety inspection required?

Yes. Maryland requires a Maryland Safety Inspection Certificate for all used vehicles before they can be titled and registered. The inspection must be performed at a licensed Maryland inspection station and is valid for 90 days. This is a buyer-side requirement — the buyer must have the vehicle inspected and present the certificate when applying for the title at the MVA. Some sellers provide a current inspection certificate as part of the sale, but it is not legally required of the seller.

What should the seller do after the sale?

The seller must remove their license plates from the vehicle before delivery and return them to the MVA. Maryland plates belong to the owner, not the vehicle. Returning the plates stops insurance and registration requirements and protects the seller from future liability. The seller should keep the plate return receipt and copies of the signed title and any bill of sale as proof of the transfer. The MVA does not require a separate seller notification form — the transfer is recorded when the buyer submits the title application.

What if the vehicle has multiple owners?

If the vehicle is titled to more than one person, all owners on the title must sign the bill of sale. Use the "Add a co-seller" option on the form to add the second seller's name and address. Both sellers' names and signature lines will appear on the document. For electronic signing, each co-owner can sign on the same device in sequence, or the document can be passed from one device to another via QR code or shared link. Both buyers can likewise be named on the bill of sale using the "Add a co-buyer" option.