Does a Maryland bill of sale need to be notarized?

When the price matters for tax, yes. Under Transportation §13-809, if a used vehicle less than 7 years old is sold privately for $500 or more below its retail value in the adopted national guide, the price is accepted only if a notarized bill of sale verifies it. Otherwise the guide’s value is used.

What is the Maryland excise tax on a used car?

6.5% of the fair market value, per Transportation §13-809(c). For a private sale of a vehicle 7 years old or older, fair market value is the purchase price or $640, whichever is greater.

How long does a Maryland buyer have to title a car?

The buyer mails or delivers the title and application promptly after delivery; if the Administration does not receive them within 30 days, it may charge an additional service fee under §13-112(c).

Is a family car transfer taxed in Maryland?

Not if no money or other valuable consideration is involved and the vehicle goes to a spouse, child, grandchild, parent, sibling, grandparent or certain in-laws. §13-810(c) exempts those transfers of Maryland-titled vehicles from the excise tax.

What does a Maryland seller have to do?

At the time the vehicle is delivered, execute an assignment and warranty of title to the buyer, listing each lien or other encumbrance, and deliver the certificate of title, as §13-112 requires.

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.

Maryland Bill of Sale — Free Template & Generator

Maryland’s excise tax is 6.5% of fair market value, and on a newer used car sold privately the statute decides what “value” is. If the price is $500 or more below the retail value in the national used-car guide, Maryland Transportation Article §13-809 accepts the price only “if verified to the satisfaction of the Administration by a notarized bill of sale.” Otherwise the guide’s value is taxed. On a car 7 years old or older, the tax is on the price, with a $640 floor.

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How it works

01
Maryland 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 Maryland’s paperwork
Word & PDF on your device; the state steps and forms are listed below, each cited to the source.

What Maryland actually requires

Maryland rules for a private sale

Last verified September 30, 2026

Excise tax 6.5% of fair market value

The tax “is: (i) Except as provided in item (ii) of this paragraph, 6.5% of the fair market value of the vehicle; or (ii) For a rental vehicle, 3.5% of the fair market value of the vehicle.”

Md. Code, Transportation §13-809(c) (Maryland General Assembly)
Fair market value on a private sale Notarized bill of sale for a price $500+ below book

For a used vehicle sold by someone other than a licensed dealer that is less than 7 years old, fair market value is the total purchase price if it is less than $500 below the retail value in the adopted national guide. If it is $500 or more below, it is the price “if verified to the satisfaction of the Administration by a notarized bill of sale,” or the guide’s valuation “if the Administration finds that the documentation … fails to verify the total purchase price.” For a vehicle 7 years old or older, it is “the greater of: 1. The total purchase price; or 2. $640.”

Md. Code, Transportation §13-809(a)(2) (Maryland General Assembly)
Seller’s duties Assign and deliver the title with the vehicle

When an owner transfers their interest, “the owner shall, at the time of the delivery of the vehicle, execute an assignment and warranty of title to the transferee, with a statement of each security interest, lien, or other encumbrance on the vehicle,” and “deliver the certificate of title to the transferee.”

Md. Code, Transportation §13-112(a)–(b) (Maryland General Assembly)
Buyer’s deadline 30 days, or an extra service fee

Promptly after delivery, the transferee mails or delivers the certificate and application to the Administration. “If the Administration does not receive the certificate and application within 30 days after delivery of the vehicle to the transferee, the Administration, in its discretion, may assess the applicant with an additional service fee.”

Md. Code, Transportation §13-112(c) (Maryland General Assembly)
Family transfers Exempt when no money changes hands

A Maryland-titled vehicle is exempt from the excise tax when transferred to “a spouse, son, daughter, grandchild, parent, sister, brother, grandparent, father–in–law, mother–in–law, son–in–law, or daughter–in–law of the transferor, and no money or other valuable consideration is involved in the transfer.”

Md. Code, Transportation §13-810(c)(1) (Maryland General Assembly)

How this document fits Maryland’s paperwork

Official form: The MVA website was not reachable from our host, so this page cites only the Maryland Code. The Transportation Article transfers ownership through the certificate of title (§13-112) and makes a notarized bill of sale the evidence that verifies a below-book price for excise tax (§13-809). A bill of sale records that price, the date and the terms.

Check the price against the used-car guide before you sign. For a vehicle under 7 years old sold $500 or more below its retail value, the buyer pays tax on the guide value unless a notarized bill of sale verifies the lower price. Sign the generated bill of sale in front of a notary in that case. The seller assigns and delivers the title, listing any liens, when the vehicle changes hands, and the buyer files within 30 days. We could not reach the MVA’s own pages, so confirm its current procedure too.

FAQ

Maryland bill of sale questions

Does a Maryland bill of sale need to be notarized?: When the price matters for tax, yes. Under Transportation §13-809, if a used vehicle less than 7 years old is sold privately for $500 or more below its retail value in the adopted national guide, the price is accepted only if a notarized bill of sale verifies it. Otherwise the guide’s value is used.
What is the Maryland excise tax on a used car?: 6.5% of the fair market value, per Transportation §13-809(c). For a private sale of a vehicle 7 years old or older, fair market value is the purchase price or $640, whichever is greater.
How long does a Maryland buyer have to title a car?: The buyer mails or delivers the title and application promptly after delivery; if the Administration does not receive them within 30 days, it may charge an additional service fee under §13-112(c).
Is a family car transfer taxed in Maryland?: Not if no money or other valuable consideration is involved and the vehicle goes to a spouse, child, grandchild, parent, sibling, grandparent or certain in-laws. §13-810(c) exempts those transfers of Maryland-titled vehicles from the excise tax.
What does a Maryland seller have to do?: At the time the vehicle is delivered, execute an assignment and warranty of title to the buyer, listing each lien or other encumbrance, and deliver the certificate of title, as §13-112 requires.
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.