In a Texas private sale, the seller signs the title and Form 130-U, and the buyer files them at a county tax office within 30 days. The buyer pays 6.25% sales tax on the price or the vehicle’s standard presumptive value, whichever is higher, plus a $28 or $33 title fee. TxDMV recommends the seller go to the tax office with the buyer.
What you need
- The Texas title, signed by the seller, with the date of sale and odometer reading
- Form 130-U, Application for Texas Title and/or Registration, signed by seller and buyer, with the sales price clearly shown
- Any supporting documents, such as a release of lien or power of attorney
- Proof of liability insurance in the buyer’s name (or apply for “title only”)
- The latest Vehicle Inspection Report, if the inspection isn’t already in the state database
- Payment for title fee, registration fees and sales tax (accepted payment varies by county)
Seller: step by step
- Sign the title and write the date of sale and the odometer reading.
- Sign Form 130-U with the sales price clearly shown. 130-U is a fillable PDF.
- Go to the county tax office with the buyer if you can. TxDMV says this is the best way to make sure the title is actually transferred.
- Deal with your plates. You can keep them for another vehicle of the same class, transfer them, or deface them so they can’t be misused. The registration sticker doesn’t transfer.
- Submit a Vehicle Transfer Notification within 30 days. Once filed, you can’t be held responsible for parking tickets and tolls run up by the buyer.
- Keep a written record of the buyer’s contact details, the date of sale and the VIN.
Buyer: step by step
- Check the title. The seller’s name and address should match their ID. TxDMV’s Title Check service shows if a title has problems that affect value.
- Get insurance before you register.
- File within 30 days at a county tax office: in the county where you live, where the sale happened, where the lienholder is, or any county willing to accept it.
- Pay the fees: the title application fee ($28 or $33, depending on the county), registration fees if the current registration isn’t valid, a $2.50 fee to transfer current registration, and 6.25% sales tax.
- Wait for the title. Allow at least 20 business days. If there is a lien, the lender gets the title.
How sales tax is worked out
Tax is 6.25% of the sales price or the vehicle’s standard presumptive value (SPV), whichever is higher. Form 130-U explains it is computed on the greater of the sales price or 80% of the SPV on the day you apply. The county tax office can estimate the amount.
Penalties for being late
- Late tax: 5% of the tax if paid 1 to 30 days late, 10% after that (minimum $1).
- Late transfer: a delinquent transfer penalty of up to $250 if you don’t apply within 30 days.
Bought it on a weekend?
If the seller removed the plates and the tax office is closed, download a Vehicle Transit Permit from TxDMV. It is valid for five days to drive the car to the tax office or home.
Family gift?
A gift from a close relative is taxed at a flat $10 instead of 6.25%. See gifting a car to a family member in Texas.