Massachusetts Vehicle Bill of Sale

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

Massachusetts does not require a separate bill of sale form for a private-party vehicle transfer, but one is strongly recommended to document the transaction. The primary transfer documents are the properly assigned certificate of title and a completed Registration and Title Application (Form RMV-1). A bill of sale establishes the purchase price for the 6.25% sales tax calculation and serves as both parties' record of the transaction.

Massachusetts has an unusual pre-registration requirement: the buyer must obtain a Massachusetts automobile insurance policy and have the RMV-1 stamped by a licensed Massachusetts insurance agent before visiting an RMV service center. The buyer must register the vehicle within 7 days of the sale to be able to drive it legally.

Does a Massachusetts bill of sale need to be notarized?

No. Massachusetts does not require notarization of a vehicle bill of sale or the title assignment for a standard private-party sale. The signed title and bill of sale, along with the insurance-stamped RMV-1, are sufficient to complete the transfer at an RMV service center.

What information does a Massachusetts vehicle bill of sale need to include?

A complete Massachusetts vehicle bill of sale should include the full legal names and addresses of both the buyer and seller, the date of sale, the agreed purchase price, and the vehicle's year, make, model, body style, color, and Vehicle Identification Number (VIN). The odometer reading must be disclosed — Massachusetts requires odometer disclosure on the back of the title consistent with federal requirements (49 CFR §580.5) for vehicles less than 20 model years old. The as-is nature of the sale should also be stated in the bill of sale.

Why must the buyer get insurance before registering?

Massachusetts is one of the few states where the buyer must have a registered insurance policy before visiting the Registry of Motor Vehicles — insurance comes before registration, not after. The buyer must choose a carrier, purchase a policy, and have a licensed Massachusetts insurance agent stamp and sign the RMV-1 form to confirm the policy is in place. Only then can the buyer visit an RMV service center to complete the title transfer and registration.

This requirement exists because Massachusetts mandates minimum liability coverage for all registered vehicles and has tightly coupled its registration system with insurance verification. Bringing an unstamped RMV-1 to the RMV will result in the transaction being rejected.

What taxes and fees does the buyer owe?

Massachusetts imposes a 6.25% sales tax on private-party vehicle purchases (M.G.L. c. 64H). The tax is calculated on the purchase price and paid to the RMV at the time of registration. If the stated purchase price is below the vehicle's book value, the RMV may assess tax based on the NADA wholesale value instead. Gift transfers between immediate family members — spouse, parent, child, sibling, grandparent, or grandchild — are exempt from sales tax but require a completed affidavit documenting the relationship.

The title transfer fee and registration fees are separate from sales tax.

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.