Rhode Island Bill of Sale — Free Template & Generator
Rhode Island taxes private car sales, and it wants the bill of sale to prove the price. The Division of Taxation’s motor vehicle regulation says the buyer files a Use Tax Return–Motor Vehicles and that “A bill of sale or copy thereof substantiating the selling price must also be shown.” The date on it matters too: the tax is due before registration or “by the twentieth (20th) day of the month following the month during which such purchase was made, whichever date comes first.”
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- Rhode Island pre-selected
How it works
- 01 Rhode Island 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 Rhode Island’s paperwork
Word & PDF on your device; the state steps and forms are listed below, each cited to the source.
What Rhode Island actually requires
Rhode Island rules for a private sale
Last verified September 30, 2026- The bill of sale proves the price Use Tax Return T-334-1 + a bill of sale
For a vehicle bought “from any other person for use in this State, the purchaser must make payment of the tax to the Tax Administrator or his/her agent as a condition precedent to obtaining a registration.” “The purchaser shall prepare a Use Tax Return-Motor Vehicles form (T-334-1) for presentation with motor vehicle registration forms,” and “A bill of sale or copy thereof substantiating the selling price must also be shown.”
- When the tax is due Before registering, or by the 20th of next month
The tax on a motor vehicle, “whether purchased from a dealer or on casual sale, must be paid prior to registering the vehicle or by the twentieth (20th) day of the month following the month during which such purchase was made, whichever date comes first.” The DMV’s example: “if your bill of sale is dated July 26, 2020, your sales tax would be due on August 20, 2020” — even if the vehicle is not registered yet.
- How much 7% of the price or the book value, whichever is higher
The Division of Taxation: use tax “is imposed at 7%”, including on “a casual sale of motor vehicle”, and “the tax imposed cannot be less than the product obtained by multiplying the tax rate by the retail dollar value.” The regulation sets the basis as “the actual selling price or the average retail value as shown in the current issue of the nationally recognized used vehicle guide … whichever is higher”, with a redetermination request allowed within thirty days after payment. The DMV breaks it down by age: 7 years old or less, 7% of NADA Clean Retail or the sale price, whichever is greater; 8 to 29 years, 7% of the sale price unless the car is on the Cars of Particular Interest list.
- Family transfers Exempt between spouses, parents, children and siblings
“Casual sales are exempt where the transferee is the spouse, mother, father, brother or sister of the transferor.” The regulation adds that the tax still applies to a casual sale of a motor vehicle “whether or not it is in fact registered or required to be registered by the purchaser.” Claimed exemptions go on the Sales or Use Tax Exemption Certificate — Motor Vehicles, Form T-333-1.
Rhode Island Code of Regulations, 280-RICR-20-70-37 (Casual Sales Generally); 280-RICR-20-70-28
- Trade-ins Only a real trade-in lowers the tax
The trade-in allowance on a private passenger automobile “given in trade toward the purchase of a new or used private passenger automobile is excluded from the measure of the use tax.” But “A separate or independent sale of an automobile to a third (3rd) party … is not a trade-in even if the proceeds from the third (3rd) party sale are immediately applied” to buying another car.
Rhode Island Code of Regulations, 280-RICR-20-70-28, §28.7 Motor Vehicle Trade-In Allowance
How this document fits Rhode Island’s paperwork
Official form: The state regulations cited here require a bill of sale that substantiates the selling price, but do not prescribe a form for it. The DMV’s own site was not reachable from our host; the DMV rules quoted below come from its Internet Archive copy, dated on each fact.
Date the bill of sale on the day the car changes hands: the 7% tax is due by the 20th of the following month, registered or not. Write the actual selling price. Rhode Island taxes the higher of that price and the guide’s retail value, and the Division of Taxation wants the bill of sale to substantiate it alongside Use Tax Return T-334-1. Selling your old car privately does not count as a trade-in. A sale to a spouse, parent or sibling is exempt, claimed on Form T-333-1.
FAQ
Rhode Island bill of sale questions
- Is a bill of sale required in Rhode Island?
- Yes, in practice. The Division of Taxation’s motor vehicle regulation says that when you register a vehicle bought from a private person, you present a Use Tax Return–Motor Vehicles (T-334-1), and a bill of sale or a copy of it substantiating the selling price must also be shown.
- How much sales tax is due on a private car sale in Rhode Island?
- 7%. For a casual sale the tax cannot be less than 7% of the retail value in the recognised used-vehicle guide, so you pay on the higher of the price and that value. The DMV’s breakdown: for a vehicle 7 years old or less, 7% of NADA Clean Retail or the sale price, whichever is greater; for 8 to 29 years, 7% of the sale price unless the car is on the Cars of Particular Interest list.
- When is Rhode Island sales tax due on a used car?
- Before you register the vehicle, or by the 20th of the month after the purchase, whichever comes first — even if the vehicle is not registered yet. A bill of sale dated July 26 means the tax is due by August 20.
- Is a car sold to a family member taxed in Rhode Island?
- Not when the buyer is the seller’s spouse, mother, father, brother or sister: the regulation exempts those casual sales. The exemption is claimed on Form T-333-1 at registration.
- Does selling my old car privately reduce the tax on my new one?
- No. Only a real trade-in toward the purchase counts. The regulation says a separate sale to a third party is not a trade-in, even if you apply the money straight to the new car.
- 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.