How to Sell a Car in North Carolina (Private Party)

North Carolina charges a 3% highway use tax (capped at $2,000) instead of sales tax. Sellers sign the title and buyers have 28 days to register the vehicle at the NC DMV.

Required Documents

North Carolina Certificate of Title — signed by the seller on the assignment section with odometer disclosure
Bill of sale — recommended to document the sale price for highway use tax calculation
Valid government-issued ID for both parties
Lien release — required if the title shows a lienholder

Title Transfer Process

Seller signs the assignment of title on the back of the NC title, including the odometer reading
No notarization is required for a private sale in North Carolina
Buyer submits the signed title to the NC Division of Motor Vehicles within 28 days of purchase
Title and registration can be processed at any NC DMV license plate agency

Taxes and Fees

3% highway use tax on the retail price or 75% of the NADA book value, whichever is greater
Highway use tax is capped at $2,000 for most vehicles (NC Gen. Stat. § 105-187.3)
$56 title fee paid by the buyer to NC DMV
No county or city sales tax is added on top of the highway use tax

Timeline

Buyer must register the vehicle within 28 days of purchase
NC DMV imposes a late registration fee if the buyer misses the 28-day window
Processing at a license plate agency is typically same-day

Seller Tips

North Carolina license plates stay with the seller — remove them before handing over the car
Notify NC DMV of the sale using the back of the title or by calling 919-715-7000
Emissions testing may be required in select counties (e.g., Mecklenburg, Wake, Durham) — check with NC DMV
Keep a copy of the signed title and bill of sale for at least two years

How to create a bill of sale

Sign the assignment of title on the back of the NC title, including the odometer reading and buyer's name.
Complete a bill of sale documenting the sale price, VIN, and both parties' signatures.
Hand the signed title and bill of sale to the buyer.
Remove your North Carolina license plates — they stay with you.
Notify NC DMV of the sale by completing the seller's section on the title or by phone.
Advise the buyer to submit the signed title and pay highway use tax at an NC DMV license plate agency within 28 days.

Frequently asked questions

What is the highway use tax in North Carolina?

North Carolina charges a 3% highway use tax instead of traditional sales tax. It is capped at $2,000 under NC Gen. Stat. § 105-187.3 and is calculated on the retail price or 75% of NADA value, whichever is greater.

How long does the buyer have to transfer the title in North Carolina?

The buyer has 28 days from the date of purchase to register the vehicle at an NC DMV license plate agency.

Do I need a notary to sell a car in North Carolina?

No. North Carolina does not require notarization for a private party vehicle sale.

Does North Carolina require a bill of sale for a private car sale?

A bill of sale is not legally required in NC, but it documents the retail price used to calculate the 3% highway use tax. Without one, the DMV may use 75% of the NADA book value instead.

Generate your North Carolina bill of sale

Create an NC-compliant bill of sale that documents the sale price for highway use tax — download as PDF.

Create Bill of Sale