Selling a car in Texas means signing over the title, filing a Vehicle Transfer Notification within 30 days, and removing your license plates before handing over the keys. Miss these steps and you could end up paying fines or getting blamed for tickets you didn’t earn. This guide walks you through every part of the process, based on current Texas Department of Motor Vehicles (TxDMV) rules for 2026.
Texas Car Selling Requirements
Texas keeps the paperwork fairly light, but a few things are non-negotiable. You need the signed Certificate of Title, a completed Form 130-U, and a filed Vehicle Transfer Notification.
Required Documents
You’ll need your original Texas title (or a certified copy if it’s lost), a valid photo ID, and a lien release letter if you still owe money on the car. Buyers fill out Form 130-U, and you sign the sales price section.
Title Transfer Deadline
The buyer has 30 calendar days from the sale date to apply for title transfer at their county tax office. Miss it, and penalties start at $25, climbing by $25 every 30 days after, up to $250. Military members get 60 days instead of 30.
Vehicle Transfer Notification (VTR-346)
This is the form that protects you. Filing it tells TxDMV you’re no longer the owner, so you’re not on the hook for parking tickets, toll violations, or worse if the buyer misuses the car before titling it.
Step-by-Step: How to Sell a Car in Texas
Here’s the process from start to finish, in order.
- Prepare your vehicle — clean it, fix small issues, and take clear photos of the exterior, interior, odometer, and VIN.
- Gather your documents — title, ID, lien release if needed, and a bill of sale if you want one.
- Find a buyer — list it online, screen callers, and verify identity before meeting anyone.
- Complete the sale — sign the title, fill out the sales price section of Form 130-U, and collect payment.
- Remove your license plates — plates stay with you, not the car.
- File the Vehicle Transfer Notification — do this online at TxDMV.gov/VTN right after the sale.
Doing these steps together, ideally at the county tax office, is the safest way to close the deal.
Texas Title Transfer Process
How to Sign the Title
Sign your name exactly as it’s printed on the front of the title — no nicknames, no shortcuts. A mismatched signature is one of the most common reasons a buyer’s title application gets rejected.
Form 130-U: Buyer’s Application
This is the Application for Texas Title and/or Registration. The buyer fills out most of it, but you complete the sales price portion. It’s available at any county tax office or on TxDMV.gov.
Where to Transfer Title
Buyers apply for the new title at their county tax assessor-collector office, not at TxDMV directly. TxDMV handles statewide policy; the county office handles the actual paperwork.
Do You Need a Bill of Sale in Texas?
No, Texas does not require a bill of sale for a private car sale. The signed title and Form 130-U are legally enough to complete the transfer.
That said, most experienced sellers create one anyway. It’s a simple record that protects both sides if a dispute comes up later.
What to Include in a Bill of Sale
- Seller’s and buyer’s full names and addresses
- Vehicle year, make, model, and VIN
- Odometer reading and sale date
- Sale price and an “as-is” statement if applicable
- Signatures from both parties
Notarizing it isn’t required, but keeping a signed copy for your own records is a smart habit.
License Plates When Selling a Car in Texas
You must remove your license plates before the buyer drives off — this hasn’t changed for private sellers.
Who Removes the Plates?
The seller does. Texas plates belong to the person, not the vehicle. A newer rule effective July 1, 2025, now requires licensed dealers to remove plates during trade-ins and sales too, but private-party transactions work the same way they always have.
What to Do With Your Plates
You have three options: transfer them to another vehicle you own in the same class, hold onto them for a future vehicle, or destroy them by defacing them with permanent black ink. Never leave plates on a car you no longer own.
Registration Sticker Removal
Take the registration sticker off the windshield too. It can’t be transferred, and the buyer will need a new one when they register the car in their name.
Texas Car Sales Tax and Fees
Texas charges a flat state sales tax with no county add-ons, which keeps the math simple.
| Fee Type | Amount | Required? |
| Motor Vehicle Sales Tax | 6.25% of price or SPV | Yes |
| Title Application Fee | $28–$33 (varies by county) | Yes |
| Registration Transfer Fee | $2.50 | Yes (if applicable) |
| Late Title Transfer Penalty | $25 + $25 per 30 days (max $250) | If late |
| Late Sales Tax Penalty | 5% (31–60 days), 10% (61+ days) | If late |
Standard Presumptive Value (SPV)
If you sell below 80% of the car’s Standard Presumptive Value, the buyer’s tax gets calculated on 80% of SPV instead of the actual sale price. It’s worth checking TxDMV’s SPV calculator before you settle on a price, so there are no surprises at the tax office.
Selling a Car with Special Circumstances
Not every sale is a clean, straightforward one — here’s how a few common situations play out.
How to Sell a Car with a Lien
Contact your lender for the payoff amount, pay it off, and get a written lien release before signing over the title. Some sellers coordinate payoff with the buyer at closing, but that requires trust and careful documentation.
Selling a Car with a Bonded Title
Yes, you can sell it — but you must disclose the bonded status to the buyer. The surety bond stays tied to you for three years from the original issue date, so any ownership claim during that window could still involve you.
Selling Without a Title
If your title is lost, apply for a certified copy using Form VTR-34. It costs $2 by mail or $5.45 in person, and all owners on record must sign.
Out-of-State Buyers
The process barely changes. The buyer titles the car in their home state instead of Texas, and they may need a 5-day temporary permit to legally drive it out of state.
How to Avoid Scams When Selling a Car
Private sales carry real risk, and Bexar County alone reported buyers losing between $1,000 and $42,000 in fraud cases between late 2025 and April 2026.
Common Texas Car Selling Scams
Watch for fake cashier’s checks from out-of-state banks, overpayment tricks, buyer-initiated escrow services, and title jumping, where the “seller” never actually titled the car in their own name.
Safe Payment Methods
Cash counted at a bank branch is the safest option. Certified checks are fine if you verify them directly with the issuing bank using a number you look up yourself, not one printed on the check.
Test Drive Safety Tips
Always ride along on test drives. Check the buyer’s driver’s license first, and never hand over keys for an unsupervised drive.
Red Flags to Watch For
- Buyer refuses to meet in public or at the tax office
- Pressure to close the deal immediately
- Out-of-state checks or wire transfer requests
- A story that keeps changing
What Happens After the Sale?
Filing your paperwork isn’t the finish line — a few things still need your attention.
When to Cancel Insurance
Wait until you’ve filed the Vehicle Transfer Notification and confirmed the buyer has taken possession. Canceling too early leaves a gap if something happens before the deal is fully closed.
What If Buyer Doesn’t Title?
Since you already filed VTR-346, you’re protected from liability either way. If the buyer stalls, you can follow up directly, and if you suspect fraud, report it to TxDMV or file a police report.
How to Check Title Status
Keep your VTR-346 confirmation number. It’s proof you filed on time, and it can clear up any confusion in minutes if a ticket or toll notice shows up with your name on it.
FAQs
Is a bill of sale required in Texas? No. The signed title and Form 130-U are legally sufficient, though a bill of sale is recommended for extra protection.
How long do I have to transfer title in Texas? The buyer has 30 calendar days from the sale date. Military personnel get 60 days.
Who removes license plates in Texas? The seller does, always, for private-party sales. Plates belong to the owner, not the vehicle.
What is Form VTR-346? It’s the Vehicle Transfer Notification. Filing it within 30 days of the sale protects you from liability for tickets, tolls, or crimes committed with the car after you sold it.
How much is the title transfer fee in Texas? Between $28 and $33, depending on the county, plus 6.25% state sales tax on the sale price or Standard Presumptive Value.
Can I sell a car with a lien? Yes, but the lien must be paid off and released before you sign over the title.
What if I lost my title? Apply for a certified copy using Form VTR-34 — $2 by mail or $5.45 in person.
Do I need a vehicle inspection to sell a car? No. The buyer needs a current inspection to register the car, but you don’t need one to sell it.
What are the penalties for late title transfer? $25 starting on day 31, plus $25 for every additional 30-day period, up to a maximum of $250, along with possible sales tax penalties.