Just Sold My Boat in Montana — What’s Next? (2026)
Need Montana bill of sale documentation?
If you haven’t generated a Montana-compliant bill of sale yet, do it now — your proof-of-sale window closes the moment the buyer leaves.
Start My Montana Boat Bill of Sale →Montana boat sale facts
| Titling agency | Montana DMV ↗ |
| Title transfer deadline | 40 days from sale |
| Release of liability | File with Montana DMV within 5 days |
| Buyer’s sales / use tax | Private-party exempt (Montana has no state sales tax on any purchases) |
| Bill of sale notary | Not required |
| Title fee (buyer pays) | $12 |
| Boat identifier | HIN (Hull Identification Number) |
Your Montana boat post-sale checklist
- 1
Keep your signed Montana 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 Montana bill of sale shields you from liability. Keep both your copy and a scan for at least 5 years.
- 2
File a release of liability with Montana DMV
Most Montana sellers file this online through Montana 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. Montana requires the buyer to title the boat within 40 days — your release filing protects you if the buyer misses that deadline.
- 3
Cancel or transfer your boat insurance
Contact your insurer the same day you hand over the keys. Montana 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
Remove your registration decal and registration decal
In Montana, the registration decal stays with the seller, not the boat. Remove the decal before handover and return any current registration to the Montana boating authority. The buyer will register the vessel in their name and receive new decals.
- 5
Verify the 40-day title transfer window
Montana requires the buyer to retitle the boat at Montana DMV within 40 days of the sale date. If you have not received confirmation that the title has been transferred by day 45, contact Montana DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.
- 6
Confirm your Montana tax obligations (seller's side)
Montana does not impose state sales tax on private-party boat sales (Montana has no state sales tax on any purchases). The buyer typically pays a flat title fee (~$12) at Montana 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
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 Montana title before you deliver the title. Montana uses MV21 (Title Lien Notation Release) as the lien release form — your lender will file this with Montana 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.
Montana lien release procedure
- Obtain Form MV21 from the Montana DOJ Motor Vehicles Division or the lienholder.
- Lienholder completes and signs MV21 releasing the lien.
- Submit MV21 with the existing title and title application at a county courthouse.
- Pay the title fee and receive a clean Montana title.
Frequently Asked Questions — Montana
How long do I have to file a release of liability in Montana?▾
Montana sellers should file a release of liability with Montana DMV within 5 days of the sale. Most Montana sellers can file this online directly through Montana 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 Montana title transfer deadline for a boat?▾
Montana 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.
Do I owe Montana sales tax on the boat I just sold?▾
Montana does not impose state sales tax on private-party boat sales. Montana has no state sales tax on any purchases. Sellers generally owe no Montana 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 Montana require a notary on the boat bill of sale?▾
No. Montana 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 Montana DMV.
How does the buyer register the boat in Montana?▾
The buyer brings the signed bill of sale and endorsed title to Montana DMV, pays the title fee (~$12) plus any applicable use tax, and receives a new Montana 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.
Used BillOfSaleNow for your sale?
Quick review helps other Montana sellers find a tool that protects them.
Source: Montana DMV ↗ · Last verified 2026-05-07