BillOfSaleNow

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

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Reviewed against state DMV requirementsLast reviewed: May 20266 min readEditorial policy
You just sold a boat in Louisiana. The sale is not legally complete until you file a release of liability with Louisiana DMV and the buyer titles the boat within 40 days. Louisiana charges 4.45% sales/use tax at title transfer (buyer pays). The bill of sale must be notarized in this state.

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Louisiana boat sale facts

Titling agencyLouisiana DMV
Title transfer deadline40 days from sale
Release of liabilityFile with Louisiana DMV within 5 days
Buyer’s sales / use tax4.45% (Sales tax applies; parish taxes vary significantly)
Bill of sale notaryRequired
Title fee (buyer pays)$69
Boat identifierHIN (Hull Identification Number)

Your Louisiana boat post-sale checklist

  1. 1

    Keep your signed Louisiana 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 40 days from the sale date, the Louisiana bill of sale shields you from liability. Keep both your copy and a scan for at least 5 years. Louisiana requires notarization of the bill of sale — both copies should bear the notary seal.

  2. 2

    File a release of liability with Louisiana DMV

    Most Louisiana sellers file this online through Louisiana 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. Louisiana requires the buyer to title the boat within 40 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. Louisiana 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 Louisiana, the registration decal stays with the seller, not the boat. Remove the decal before handover and return any current registration to the Louisiana boating authority. The buyer will register the vessel in their name and receive new decals.

  5. 5

    Verify the 40-day title transfer window

    Louisiana requires the buyer to retitle the boat at Louisiana DMV within 40 days of the sale date. If you have not received confirmation that the title has been transferred by day 45, contact Louisiana DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.

  6. 6

    Confirm your Louisiana tax obligations (seller's side)

    Louisiana charges 4.45% sales/use tax on private-party boat sales — the buyer pays this at Louisiana DMV when titling. Sales tax applies; parish taxes vary significantly. Sellers generally do not owe Louisiana sales tax, but if the boat sold for more than your original purchase price you may owe federal capital gains tax. Consult a tax advisor.

  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 Louisiana title before you deliver the title. Louisiana uses DPSMV 1863 as the lien release form — your lender will file this with Louisiana 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.

Louisiana lien release procedure

  1. Obtain Form DPSMV 1863 from the Louisiana OMV or the lienholder.
  2. Lienholder completes and signs DPSMV 1863 releasing the lien.
  3. Submit DPSMV 1863 with the existing title and title application at a Louisiana OMV office.
  4. Pay the title fee and receive a clean Louisiana title.

Frequently Asked Questions — Louisiana

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

Louisiana sellers should file a release of liability with Louisiana DMV within 5 days of the sale. Most Louisiana sellers can file this online directly through Louisiana 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 Louisiana title transfer deadline for a boat?

Louisiana requires the buyer to title the boat within 40 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties. Louisiana is unique: a bill of sale for a motor vehicle must be signed before a notary public and two witnesses to be legally valid. This is required under Louisiana Civil Code art. 1833.

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

Louisiana charges 4.45% sales/use tax on private-party boat sales. Sales tax applies; parish taxes vary significantly. The buyer typically pays this at Louisiana DMV when titling — sellers generally owe no Louisiana sales tax on the proceeds. You may owe federal capital gains if you sold for more than the original purchase price.

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

Yes. Louisiana requires notarization of the boat bill of sale. Louisiana is unique: a bill of sale for a motor vehicle must be signed before a notary public and two witnesses to be legally valid. This is required under Louisiana Civil Code art. 1833. Both copies (buyer + seller) should bear the notary seal. Sign in front of a notary public at handover — many Louisiana banks notarize for free for account holders.

How does the buyer register the boat in Louisiana?

The buyer brings the signed bill of sale and endorsed title to Louisiana DMV, pays the title fee (~$69) plus 4.45% sales/use tax, and receives a new Louisiana title in their name. Transfer must be completed within 40 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.

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

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