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Maryland · Paperwork

Maryland bill of sale — requirements and free generator

Maryland is the state where the bill of sale can literally require a notary. The MVA’s rule, printed on Form VR-181: when the vehicle is less than 7 years old and the sale price is $500 or more below book value, the bill of sale must be notarized — that sworn price is what lets the MVA calculate the excise tax on what you actually paid instead of the book value. The tax got heavier recently: Maryland’s excise tax rose from 6% to 6.5% on July 1, 2025 (HB 352, the Budget Reconciliation and Financing Act), and the title fee doubled from $100 to $200 the same day. Vehicles 7 years old and older are taxed on the greater of the purchase price or a $640 minimum. One more Maryland-only hurdle: a used vehicle sold privately needs a Maryland Safety Inspection certificate — valid for 90 days — before it can be registered. Between the notary rule, the inspection, and the new fees, Maryland private sales reward preparation more than most states.

Not legal advice — general information for Maryland. Last reviewed: July 2026.

Maryland: bill of sale — required in some cases · notarization: in some cases

A notarized bill of sale (Form VR-181) is needed when the vehicle is under 7 years old and sells for $500 or more below book value.

Official state form: VR-181 — for DMV title/registration paperwork, use the official form; keep this generated document as your signed record of the deal.

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MOTOR VEHICLE BILL OF SALE

State of Maryland

1. The Parties. This Bill of Sale is made effective as of ______________________ (the “Sale Date”) by and between ______________________, with a mailing address of ________________________________________ (the “Seller”), and ______________________, with a mailing address of ________________________________________(the “Buyer”).

2. The Property.The Seller agrees to sell, transfer, and deliver to the Buyer the following described property (the “Property”):

  • Year: ________
  • Make: ______________________
  • Model: ______________________
  • Color: ____________
  • Vehicle Identification Number (VIN): ______________________
  • Odometer Reading: ____________ miles

3. Consideration. The Buyer agrees to pay the Seller the total sum of $____________ USD, receipt of which is acknowledged by the Seller as full payment for the Property.

4. Ownership. The Seller certifies that the Seller is the legal owner of the Property, that the Property is sold free and clear of all liens, encumbrances, and claims, and that the Seller has full right and authority to sell and transfer it.

5. Odometer Disclosure Statement

Federal law (49 U.S.C. § 32705) requires that you state the mileage upon transfer of ownership. Failure to complete an odometer statement, or providing a false statement, may result in fines and/or imprisonment. I, ______________________, certify to the best of my knowledge that the odometer reading of ____________ miles:

  • ☑ reflects the ACTUAL mileage of the vehicle;
  • ☐ exceeds the odometer’s mechanical limits;
  • ☐ is NOT the actual mileage — WARNING: ODOMETER DISCREPANCY.

6. Condition. The Buyer accepts the Property in its present condition, “AS-IS, WHERE-IS”, with all faults. The Seller makes no warranties, express or implied, including any implied warranty of merchantability or fitness for a particular purpose, except the warranty of ownership stated above.

Seller’s Signature

Printed Name: ______________________

Date: ____________________

Buyer’s Signature

Printed Name: ______________________

Date: ____________________

Notary Acknowledgment

State of Maryland, County of ____________________.

On this ______ day of ____________________, 20____, before me, the undersigned Notary Public, personally appeared ________________________________________, proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to this instrument, and acknowledged that they executed the same for the purposes stated herein.

Notary Public Signature

Printed Name: ____________________

My commission expires: ____________________

(Seal)

Generated with the free Brixaz bill of sale generator (brixaz.com/tools/bill-of-sale). General information, not legal advice. For vehicles, the certificate of title transfers ownership — this document is supporting proof of the sale.

Maryland requirements for a private sale

  • ✓A notarized bill of sale (Form VR-181) is required when the vehicle is less than 7 years old and the sale price is $500 or more below book value — it is how the MVA taxes the actual price instead of the book value (mva.maryland.gov, Form VR-181).
  • ✓The vehicle excise tax is 6.5% since July 1, 2025, raised from 6% by HB 352, the Budget Reconciliation and Financing Act (MVA industry bulletin, May 2025).
  • ✓Vehicles 7 years old and older are taxed on the greater of the purchase price or the $640 minimum value (MVA, Excise Tax).
  • ✓The title fee is $200 — doubled from $100 on July 1, 2025, under the same law.
  • ✓A used vehicle sold privately must pass a Maryland Safety Inspection before it can be registered; the certificate is valid for 90 days (Maryland State Police Automotive Safety Enforcement Division).
  • ✓The title assignment carries the federal odometer disclosure — required for model year 2011 and newer vehicles.

Notarization: in some cases

Maryland is the marquee example of conditional notarization: the VR-181 bill of sale must be notarized only when the vehicle is under 7 years old and sold for $500 or more below book value. Outside that trigger — older vehicle, or a price near book value — no notary is needed and the title assignment alone carries the sale.

Official form

Maryland’s official bill of sale is Form VR-181, published by the MVA (mva.maryland.gov/Documents/VR-181.pdf). It captures both parties, the vehicle, and the price, with a notary block for the cases that require one. Use the official form when your sale falls under the notarization rule; for a routine sale, a complete signed bill of sale like this generator’s output documents the deal.

Worked example: selling a car in Maryland

Say you buy a 2022 Honda Accord EX (four years old) in Baltimore for $19,000 when the book value is $19,300. The price is only $300 under book, so no notary — the MVA taxes your $19,000 at 6.5%: $1,235, plus the $200 title fee, and the seller hands you a Maryland Safety Inspection certificate dated within 90 days. Now rerun it at $18,500 — that is $800 below book, so the notarized VR-181 becomes mandatory. With it, tax is 6.5% of $18,500 = $1,202.50; without it, the MVA taxes the $19,300 book value instead ($1,254.50). The notary visit is worth $52 — and skipping it does not save the tax, it raises it.

Maryland bill of sale FAQ

When does a Maryland bill of sale need to be notarized?

When both conditions hit: the vehicle is less than 7 years old, and the sale price is $500 or more below its book value. Then the MVA requires the notarized Form VR-181, signed by buyer and seller, to accept the actual price for excise tax. Older vehicles and near-book prices skip the notary entirely.

How much is Maryland’s vehicle excise tax now?

6.5% — it rose from 6% on July 1, 2025, under HB 352 (the Budget Reconciliation and Financing Act), which also doubled the title fee to $200. For private sales of newer vehicles the tax rides on book value unless a notarized VR-181 proves a lower actual price; vehicles 7+ years old pay on the greater of price or $640.

Does a used car need an inspection before a private sale in Maryland?

It needs one before the buyer can register it: the Maryland Safety Inspection, performed at a licensed station, produces a certificate valid for 90 days. Sellers commonly get the inspection before listing — an uninspected car is worth less precisely because the buyer inherits the repair list.

What is the minimum excise tax on an old cheap car in Maryland?

For vehicles 7 years old and older, the 6.5% tax applies to the greater of the purchase price or $640 — so even a $300 beater is taxed as if it cost $640, about $41.60. It is Maryland’s floor against $1 paper prices on old cars.

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