Do I need a bill of sale to sell a car in Arkansas?

For the seller who wants the sales-tax credit on a replacement vehicle, yes: the DFA says both seller and buyer must sign the bill of sale for the seller to receive the credit, and without a bill of sale signed by all parties showing the total consideration, tax is due on the full price of the new vehicle. For the buyer, a bill of sale is the record of the price the tax is charged on.

How does the Arkansas used-car sales tax credit work?

If you buy a vehicle and, within 60 days before or after that purchase, sell a used vehicle that is titled in your name, the sale price is credited against the taxable price of the one you bought, the same way a trade-in is. Take a copy of the bill of sale to the Revenue Office when you register the new vehicle; if you already registered and paid, you can claim a refund with the bill of sale. Insurance settlements do not count.

How long do I have to register a car in Arkansas after buying it?

60 days from the date of purchase. After that the DFA adds a 10% penalty on the total sales tax due and a late-registration penalty of $3.00 for each 10 days the vehicle is not registered.

Is there sales tax on a cheap used car in Arkansas?

Not below $4,000. The DFA’s FAQ says a used vehicle priced at $3,999 and below owes no sales tax, and one priced from $4,000 through $9,999 is taxed at 3.5%. The FAQ lists new vehicles at 6.5% and does not state a separate rate for used vehicles at $10,000 or more, so confirm that with a State Revenue Office.

Am I liable if the buyer crashes the car after I sell it?

Ark. Code §27-14-911, quoted on the DFA’s Notice of Transfer of Ownership form, says an owner who has made a bona fide sale and delivered possession to the buyer is not liable for damages from the buyer’s negligent driving afterwards. File the notice and keep a dated bill of sale showing when possession changed hands.

Is this legal advice?

No. Free Contract Generator provides self-help templates and general information, not legal advice, and no attorney-client relationship is created. Vehicle-transfer rules are set by each state and change; confirm the current rule with the agency cited and consult a licensed attorney for advice about your situation.

Arkansas Bill of Sale — Free Template & Generator

In Arkansas a bill of sale can cut the tax on your next car. The Department of Finance and Administration’s own Bill of Sale is “for a vehicle claimed as a tax credit toward the purchase of a replacement vehicle”: sell your old vehicle privately within 60 days before or after buying another, and the sale is credited like a trade-in. The DFA is blunt about the paperwork: if no bill of sale signed by all parties shows the total consideration, “tax shall be due on the total consideration paid for the new or used vehicle.”

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How it works

01
Arkansas is already selected
The governing-law clause names the state; change it only if the sale happens elsewhere.
02
Enter the item and the parties
Vehicle, boat or general item — VIN and odometer, or HIN — plus price, payment method, seller and buyer.
03
Review clause by clause
The as-is terms, the seller’s title warranty and, for vehicles, the federal odometer statement.
04
Download, then file Arkansas’s paperwork
Word & PDF on your device; the state steps and forms are listed below, each cited to the source.

What Arkansas actually requires

Arkansas rules for a private sale

Last verified September 30, 2026

Credit for selling your old car Within 60 days before or after the new purchase

Per the form’s instructions, “Pursuant to Act 1232 of 1997, as amended by Act 277 of 2021, both the seller and buyer must sign their names to the bill of sale … in order for the seller to receive a credit.” The credit applies to vehicles purchased on or after July 28, 2021, “if within 60 days either before or after the date of purchase, the consumer sells a used motor vehicle,” and is calculated like a trade-in. Only a consumer whose name is on the title of the vehicle sold can take it, and “A settlement payment received from an insurance company does not qualify as a sale for this credit.”

Arkansas DFA Revenue Division — Bill of Sale, Instructions: Credit for Sale of Used Vehicle
Deadline 60 days to register

The DFA’s motor vehicle FAQ: “You have 60 days from the date of purchase to register your vehicle.” Miss it and “There will be a 10% sales tax penalty of the total sales tax due,” and the “Penalty for late registration is $3.00 each 10 days the motor vehicle is not registered.”

Arkansas DFA — DSMV FAQs
Sales tax on a used car None to $3,999 · 3.5% for $4,000–$9,999

The same FAQ gives the rates as: “New Vehicle – 6.5%”, “Used Vehicle – $4,000 through $9,999 will be 3.5%” and “Used Vehicle – $3,999 and below no sales tax due.” The page does not list a separate rate for used vehicles priced at $10,000 or more; confirm that at a State Revenue Office. Because the rate depends on the price, the price on the bill of sale is the number that matters.

Arkansas DFA — DSMV FAQs
Seller’s protection Notice of Transfer of Ownership

The DFA’s Notice of Transfer of Ownership form quotes Ark. Code §27-14-911: the owner “who has made a bona fide sale or transfer of his title or interest and has delivered possession of the motor vehicle to the purchaser, is not liable for any damages thereafter resulting from the negligent operation of the motor vehicle by another.” On the notice the seller certifies they have transferred their right, title and interest and have properly endorsed and delivered the certificate of title.

Arkansas DFA — Notice of Transfer of Ownership of a Motor Vehicle

How this document fits Arkansas’s paperwork

Official form: DFA Bill of Sale — Bill of Sale — for a vehicle claimed as a tax credit toward the purchase of a replacement vehicle. Revenue Division form: purchaser, seller, year, make and model, VIN, odometer reading, date sold and sale price. Buyer and seller each swear the information is true and acknowledge that any attempt to evade tax by a false statement is a felony under Arkansas law.

Use the generated bill of sale as the full record of the deal — price, odometer, date, as-is terms — and have both of you sign it. If the seller plans to claim the sales-tax credit on a replacement vehicle, fill in the DFA’s own Bill of Sale too, signed by both parties, since the credit depends on it. The seller then files the Notice of Transfer of Ownership. The buyer has 60 days to register, and pays tax on the price according to the DFA’s used-vehicle tiers.

FAQ

Arkansas bill of sale questions

Do I need a bill of sale to sell a car in Arkansas?: For the seller who wants the sales-tax credit on a replacement vehicle, yes: the DFA says both seller and buyer must sign the bill of sale for the seller to receive the credit, and without a bill of sale signed by all parties showing the total consideration, tax is due on the full price of the new vehicle. For the buyer, a bill of sale is the record of the price the tax is charged on.
How does the Arkansas used-car sales tax credit work?: If you buy a vehicle and, within 60 days before or after that purchase, sell a used vehicle that is titled in your name, the sale price is credited against the taxable price of the one you bought, the same way a trade-in is. Take a copy of the bill of sale to the Revenue Office when you register the new vehicle; if you already registered and paid, you can claim a refund with the bill of sale. Insurance settlements do not count.
How long do I have to register a car in Arkansas after buying it?: 60 days from the date of purchase. After that the DFA adds a 10% penalty on the total sales tax due and a late-registration penalty of $3.00 for each 10 days the vehicle is not registered.
Is there sales tax on a cheap used car in Arkansas?: Not below $4,000. The DFA’s FAQ says a used vehicle priced at $3,999 and below owes no sales tax, and one priced from $4,000 through $9,999 is taxed at 3.5%. The FAQ lists new vehicles at 6.5% and does not state a separate rate for used vehicles at $10,000 or more, so confirm that with a State Revenue Office.
Am I liable if the buyer crashes the car after I sell it?: Ark. Code §27-14-911, quoted on the DFA’s Notice of Transfer of Ownership form, says an owner who has made a bona fide sale and delivered possession to the buyer is not liable for damages from the buyer’s negligent driving afterwards. File the notice and keep a dated bill of sale showing when possession changed hands.
Is this legal advice?: No. Free Contract Generator provides self-help templates and general information, not legal advice, and no attorney-client relationship is created. Vehicle-transfer rules are set by each state and change; confirm the current rule with the agency cited and consult a licensed attorney for advice about your situation.