How To Sell a Car in Texas

Selling a motor vehicle in Texas requires compliance with state laws governing title transfer, ownership documentation, odometer disclosure, sales tax remittance, and post-sale notification. Both private-party sellers and those transferring vehicles to dealerships must follow specific procedural steps to ensure a valid transfer of ownership. The Texas Department of Motor Vehicles (TxDMV) and county tax assessor-collector offices administer these requirements.

What You Need To Know Before Selling a Car in Texas

Title Law and Ownership Requirements

A Texas certificate of title is the primary document establishing ownership of a motor vehicle. The titled owner must hold clear title free of liens before the vehicle may be sold. The seller's name and any co-owner names must appear on the certificate of title exactly as they will sign during the transfer. If a vehicle is jointly owned and the names are joined by "and," both owners must sign all title documents. If the names are joined by "or," either owner may execute the transfer independently.

Vehicles Exempt From Title Requirements

Farm trailers with a gross weight of 4,000 pounds or less are exempt from title and registration requirements if primarily used as a farm vehicle, per Texas Transportation Code § 502.146. Farm tractors and implements of husbandry are also exempt from title requirements under SB 2705.

Manufactured trailers with a gross weight of 4,000 pounds or less that have never been titled may remain untitled. However, if such a trailer was previously titled, the title requirement applies to all future transfers.

For untitled exempt vehicles, a bill of sale and registration documents serve as proof of ownership upon transfer. Vehicles designed exclusively for off-highway use, golf carts, and racing vehicles are not eligible for title and cannot be titled.

Satisfying an Existing Lien

If an active lien is recorded on the certificate of title, the seller must obtain a lien release from the lienholder before the vehicle can be transferred. The lienholder is responsible for providing a lien release document after final payment is received. The seller must submit the lienholder's written lien release along with the existing certificate of title and Application for Texas Title and/or Registration (Form 130-U) to the county tax assessor-collector's office to obtain a title free of lien notation. The seller should request and retain a copy of the lien release letter for records.

Inspection and Emissions Requirements for Private Sales

Texas does not require a general safety inspection prior to the sale of a non-commercial vehicle. However, a Vehicle Inspection Report (VIR) may be required at the time of the buyer's registration application if a current inspection record is not maintained in the state database. Emissions testing is required only in specific counties: Brazoria, Collin, Dallas, Denton, El Paso, Ellis, Fort Bend, Galveston, Harris, Johnson, Kaufman, Montgomery, Parker, Rockwall, Tarrant, Travis, and Williamson. In these counties, vehicles must have a valid emissions inspection prior to registration. Vehicles 25 model years old or older are not required to undergo emissions inspections. The seller is not responsible for obtaining an inspection as a prerequisite to sale; however, providing a current VIR to the buyer expedites the buyer's registration process.

Odometer Disclosure Requirements

Under federal law, the odometer reading must be disclosed for all vehicles manufactured within the previous 20 model years at the time of transfer. The seller must certify the actual odometer reading on Form 130-U or provide the disclosure in writing. If the odometer reading does not reflect actual mileage or is not available, the seller must indicate this on the application form. Failure to disclose or falsifying the odometer reading may result in federal penalties.

Documents Required To Sell a Car in Texas

Certificate of Title

The existing certificate of title is the foundational document for the transfer. The seller must sign the assignment section on the back of the title, providing the buyer's full legal name and address, the date of sale, and the odometer reading (if applicable). The seller's signature must be signed exactly as the name appears on the front of the certificate. The state does not require the title assignment to be notarized.

Application for Texas Title and/or Registration

Both the seller and buyer must sign the Application for Texas Title and/or Registration (Form 130-U). This form documents the transfer of ownership, captures odometer disclosure, identifies any liens, and calculates motor vehicle sales tax due. The seller completes sections identifying the vehicle, prior ownership, and lien information, then signs the form. The buyer completes applicant information, signs as the new owner, and submits the application and applicable fees to the county tax assessor-collector's office within 30 calendar days of the purchase date.

Bill of Sale

Although not statutorily required for all Texas private-party sales, a bill of sale is strongly recommended and frequently required by county tax assessor-collector offices. A valid bill of sale must contain the following minimum information: the full name and address of the seller, the full name and address of the buyer, the date of sale, a complete vehicle description including the VIN, year, make, model, body type, and color, the purchase price, and the signatures of both parties. Both the seller and buyer should retain a signed copy for their personal records.

Motor Vehicle Transfer Notification

The seller should submit Motor Vehicle Transfer Notification (Form VTR-346) to the Texas Department of Motor Vehicles within 30 calendar days of the sale date to protect against future liability for criminal or civil acts involving the vehicle after transfer. This form notates the transfer on the state motor vehicle record and shields the seller from liability. The form requires the vehicle identification number, Texas license plate number, date of transfer, and names and addresses of both the transferor and new owner.

Submission may be completed online at the TxDMV Vehicle Transfer Notification portal or by mailing the completed form to: TxDMV Vehicle Titles and Registration Division, PO Box 26417, Austin, TX 78755-0417.

How To Transfer a Car Title in Texas

Step 1: Review the Title Before the Sale

The seller must verify that the certificate of title is present, unaltered, and in the seller's legal name. If a lien is recorded on the title, the seller must obtain a written lien release from the lienholder before proceeding. The seller should also verify that the vehicle identification number on the title matches the vehicle's VIN to ensure accuracy. If the original title is lost, destroyed, or mutilated, the seller must obtain a replacement title from the county tax assessor-collector's office by submitting Form 130-U and the applicable application fee before the sale can be completed.

Step 2: Complete and Sign the Certificate of Title

The seller completes the assignment section on the reverse of the existing certificate of title. The buyer's full legal name and complete address must be entered exactly as they appear on the buyer's government-issued photo identification. The seller enters the date of sale (month, day, and year) and the odometer reading in whole numbers with no decimal places. The seller's signature must match the signature on the front of the title and be signed exactly as the name appears there. The title document must not be altered; any correction fluid, erasures, or modifications will result in rejection by the tax assessor-collector's office.

Step 3: Prepare the Bill of Sale and Disclosure Paperwork

The seller and buyer together prepare a bill of sale containing the required minimum information: both parties' full names and addresses, the sale date, a complete vehicle description (VIN, year, make, model, body type, and color), the sale price, and both parties' signatures. The seller completes Form 130-U with the vehicle and lien information, records the odometer reading, and signs in the designated sections as the prior owner. The form must be signed by both the seller and buyer.

Step 4: Deliver Documents to the Buyer

The seller delivers the following documents to the buyer at the time of sale: the original certificate of title with the seller's assignment signature, a signed copy of the bill of sale, and a signed copy of Form 130-U. If applicable, the seller provides a copy of the lien release document or any Vehicle Inspection Report if one has been obtained. The buyer assumes full responsibility for submitting the complete application package to a county tax assessor-collector's office.

Step 5: Buyer Applies for Title Through County Tax Assessor-Collector

The buyer must apply for a new certificate of title through a county tax assessor-collector's office within 30 calendar days of the purchase date. Failure to apply within this period may result in a delinquent transfer penalty of up to $250. The buyer submits the signed original certificate of title, the completed Form 130-U, proof of Texas liability insurance, a valid government-issued photo identification, and payment of applicable title application fees and motor vehicle sales tax. If the vehicle is registered in one of the 17 emissions-testing counties, the buyer must provide a current Vehicle Inspection Report (VIR) or undergo an emissions test prior to registration. The county tax assessor-collector's office processes the application and issues a new certificate of title in the buyer's name.

Title Transfer Fee Schedule in Texas

The Application for Texas Title and/or Registration (Form 130-U) title application fee varies by county of residence. Applicants in emissions-compliant counties pay $28.00, while applicants in non-emissions-compliant counties pay $33.00.

In addition to the state application fee, a $2.50 transfer fee is charged when transferring current registration to the new owner. If a new registration is also obtained at the time of title application, the full annual registration fee for that vehicle class applies plus applicable local county fees. County tax assessor-collector offices may collect additional local fees. Trailers registered under farm classification are subject to their own fee structure. No separate title transfer fee is charged by the state; the application fee covers the title issuance.

Sales Tax on Private Vehicle Sales

Buyers of motor vehicles in Texas owe a 6.25% sales tax on the purchase price minus any trade-in allowance. For private-party sales, the taxable value is calculated on the greater of the actual sales price or 80% of the standard presumptive value (SPV).

The buyer is responsible for remitting the tax to the county tax assessor-collector within 30 calendar days of purchase by submitting Form 130-U with the appropriate tax payment. Under the Texas Comptroller guidance on private-party sales and standard presumptive values, the tax is computed at the time of title application. If tax payment is made 1 to 30 calendar days after the due date, a 5% penalty is assessed. If payment is made more than 30 calendar days late, a 10% penalty applies, with a minimum penalty of $1.00.

What To Do After Selling Your Car in Texas

After the sale is finalized, the seller has several post-sale responsibilities to manage potential liability and wind down ownership of the vehicle.

Remove License Plates

Under Texas law, the seller may remove the license plates and registration sticker from the vehicle at the time of sale. If the plates are removed on a Saturday or Sunday when the county tax assessor-collector's office is closed, the seller must obtain a Vehicle Transit Permit to legally drive the vehicle. The permit is valid for five calendar days, and only one permit may be issued per vehicle sale. If the seller does not remove the plates, the seller should provide them to the buyer for the buyer to surrender if desired. The seller may retain the plates for transfer to another Texas-titled vehicle if desired.

Submit Vehicle Transfer Notification

The seller must submit Motor Vehicle Transfer Notification (Form VTR-346) to the Texas Department of Motor Vehicles within 30 calendar days of the date of sale to protect against post-transfer liability. Submission may be made online at the TxDMV Vehicle Transfer Notification portal or by mailing the completed form to: TxDMV Vehicle Titles and Registration Division, PO Box 26417, Austin, TX 78755-0417.

Cancel Insurance Coverage

The seller should contact the automobile insurance provider to cancel liability insurance coverage on the sold vehicle or transfer the policy to a replacement vehicle immediately after the sale. Maintaining insurance on a vehicle no longer owned is unnecessary and may result in avoidable premium charges.

Retain Sale Documents

The seller should retain copies of the executed certificate of title assignment, bill of sale, Form 130-U, and Form VTR-346 (or confirmation of online submission) for personal records. These documents may be needed to resolve future liability disputes or to document proof of sale.

Contact Information

Texas Department of Motor Vehicles
4000 Jackson Avenue, Austin, TX 78731
Phone: (512) 465-3000
Official Website: Texas Department of Motor Vehicles