BillOfSaleNow

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

BN
Reviewed against state DMV requirementsLast reviewed: May 20266 min readEditorial policy
You just sold a boat in Minnesota. The sale is not legally complete until you file a release of liability with Minnesota DMV and the buyer titles the boat within 10 days. Minnesota charges 6.5% sales/use tax at title transfer (buyer pays).

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Minnesota boat sale facts

Titling agencyMinnesota DMV
Title transfer deadline10 days from sale
Release of liabilityFile with Minnesota DMV within 5 days
Buyer’s sales / use tax6.5% (Motor vehicle sales tax applies to all vehicle sales)
Bill of sale notaryNot required
Title fee (buyer pays)$8
Boat identifierHIN (Hull Identification Number)

Your Minnesota boat post-sale checklist

  1. 1

    Keep your signed Minnesota 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 10 days from the sale date, the Minnesota 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 Minnesota DMV

    Most Minnesota sellers file this online through Minnesota 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. Minnesota requires the buyer to title the boat within 10 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. Minnesota 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 Minnesota, the registration decal stays with the seller, not the boat. Remove the decal before handover and return any current registration to the Minnesota boating authority. The buyer will register the vessel in their name and receive new decals.

  5. 5

    Verify the 10-day title transfer window

    Minnesota requires the buyer to retitle the boat at Minnesota DMV within 10 days of the sale date. If you have not received confirmation that the title has been transferred by day 15, contact Minnesota DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.

  6. 6

    Confirm your Minnesota tax obligations (seller's side)

    Minnesota charges 6.5% sales/use tax on private-party boat sales — the buyer pays this at Minnesota DMV when titling. Motor vehicle sales tax applies to all vehicle sales. Sellers generally do not owe Minnesota 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 Minnesota title before you deliver the title. Minnesota uses PS2004 or title lien release section as the lien release form — your lender will file this with Minnesota 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.

Minnesota lien release procedure

  1. Lienholder completes Form PS2004 or the lien release section on the existing title.
  2. Owner submits the lien release with the title and title application at a Minnesota DVS office.
  3. Pay the title fee and receive a clean Minnesota title.

Frequently Asked Questions — Minnesota

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

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

Minnesota requires the buyer to title the boat within 10 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.

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

Minnesota charges 6.5% sales/use tax on private-party boat sales. Motor vehicle sales tax applies to all vehicle sales. The buyer typically pays this at Minnesota DMV when titling — sellers generally owe no Minnesota sales tax on the proceeds. You may owe federal capital gains if you sold for more than the original purchase price.

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

No. Minnesota 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 Minnesota DMV.

How does the buyer register the boat in Minnesota?

The buyer brings the signed bill of sale and endorsed title to Minnesota DMV, pays the title fee (~$8) plus 6.5% sales/use tax, and receives a new Minnesota title in their name. Transfer must be completed within 10 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 Minnesota sellers find a tool that protects them.

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

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