BillOfSaleNow

Just Sold My Boat in Arizona — What’s Next? (2026)

BN
Reviewed against state DMV requirementsLast reviewed: May 20266 min readEditorial policy
You just sold a boat in Arizona. The sale is not legally complete until you file a release of liability with Arizona DMV and the buyer titles the boat within 15 days. Arizona exempts private-party boat sales from state sales tax.

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Arizona boat sale facts

Titling agencyArizona DMV
Title transfer deadline15 days from sale
Release of liabilityFile with Arizona DMV within 5 days
Buyer’s sales / use taxPrivate-party exempt (Private party sales pay a flat $20 vehicle license transfer fee instead of sales tax)
Bill of sale notaryNot required
Title fee (buyer pays)$4
Boat identifierHIN (Hull Identification Number)

Your Arizona boat post-sale checklist

  1. 1

    Keep your signed Arizona bill of sale

    This is your proof that you sold the boat on the sale date. If the buyer gets a ticket, is in an accident, or fails to transfer the title within 15 days from the sale date, the Arizona bill of sale shields you from liability. Keep both your copy and a scan for at least 5 years.

  2. 2

    File a release of liability with Arizona DMV

    Most Arizona sellers file this online through Arizona DMV within 5 days of the sale. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents become the buyer's responsibility, not yours. Arizona requires the buyer to title the boat within 15 days — your release filing protects you if the buyer misses that deadline.

  3. 3

    Cancel or transfer your boat insurance

    Contact your insurer the same day you hand over the keys. Arizona does not require you to maintain insurance on a vehicle you no longer own, but you must not cancel before the sale is complete. If you are replacing the boat with another, transfer the policy instead — many insurers offer a short grace period to bind coverage on the new vehicle.

  4. 4

    Remove your registration decal and registration decal

    In Arizona, the registration decal stays with the seller, not the boat. Remove the decal before handover and return any current registration to the Arizona boating authority. The buyer will register the vessel in their name and receive new decals.

  5. 5

    Verify the 15-day title transfer window

    Arizona requires the buyer to retitle the boat at Arizona DMV within 15 days of the sale date. If you have not received confirmation that the title has been transferred by day 20, contact Arizona DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.

  6. 6

    Confirm your Arizona tax obligations (seller's side)

    Arizona does not impose state sales tax on private-party boat sales (Private party sales pay a flat $20 vehicle license transfer fee instead of sales tax). The buyer typically pays a flat title fee (~$4) at Arizona DMV. If you sold the boat for more than your original purchase price, you may owe federal capital gains — most private boat sales are at a loss and not taxable.

  7. 7

    Watch for liens or loan payoff confirmation

    If you had a loan on the boat, confirm the lender received the buyer's payoff and has released the lien on the Arizona title before you deliver the title. Arizona uses Title (lien section) as the lien release form — your lender will file this with Arizona DMV to clear the title record.

Boat-specific note

Boats use a Hull Identification Number (HIN) instead of a VIN — confirm the HIN on the transom matches the title and bill of sale. If the vessel is U.S. Coast Guard documented (5+ net tons, typically 26ft+), file an abstract-of-title transfer with the National Vessel Documentation Center in addition to state registration.

Arizona lien release procedure

  1. Lienholder completes the lien release section on the back of the existing title.
  2. Owner submits the released title with a title application at an AZ MVD office or Authorized Third Party.
  3. Pay the title fee and receive a new title without lien notation.

Frequently Asked Questions — Arizona

How long do I have to file a release of liability in Arizona?

Arizona sellers should file a release of liability with Arizona DMV within 5 days of the sale. Most Arizona sellers can file this online directly through Arizona DMV. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents fall on the buyer.

What is the Arizona title transfer deadline for a boat?

Arizona requires the buyer to title the boat within 15 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.

Do I owe Arizona sales tax on the boat I just sold?

Arizona does not impose state sales tax on private-party boat sales. Private party sales pay a flat $20 vehicle license transfer fee instead of sales tax. Sellers generally owe no Arizona sales tax. You may owe federal capital gains tax if the boat sold for more than your original purchase price — most private sales are at a loss and not taxable.

Does Arizona require a notary on the boat bill of sale?

No. Arizona does not require notarization for a private boat bill of sale. A signed bill of sale with both parties' full names, addresses, signatures, and the date is sufficient for Arizona DMV.

How does the buyer register the boat in Arizona?

The buyer brings the signed bill of sale and endorsed title to Arizona DMV, pays the title fee (~$4) plus any applicable use tax, and receives a new Arizona title in their name. Transfer must be completed within 15 days of the sale date.

What is U.S. Coast Guard documentation and do I need to file anything with the USCG?

USCG documentation is a federal title for vessels 5+ net tons (typically 26ft+) used in commerce or international waters. Recreational boats under 26 feet usually do not need USCG documentation — state registration and a bill of sale are sufficient. If your boat IS USCG-documented, file an abstract of title transfer with the National Vessel Documentation Center in addition to state registration.

Where do I find the HIN on my boat?

The Hull Identification Number (HIN) is a 12-character serial stamped on the starboard side of the transom (back of the boat) above the waterline. It is also recorded on the title. Confirm the HIN on the transom matches your bill of sale and title before the buyer pulls away on the trailer.

Used BillOfSaleNow for your sale?

Quick review helps other Arizona sellers find a tool that protects them.

Source: Arizona DMV · Last verified 2026-05-07

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