Just Sold My Car in Indiana — What’s Next? (2026)
Need Indiana bill of sale documentation?
If you haven’t generated a Indiana-compliant bill of sale yet, do it now — your proof-of-sale window closes the moment the buyer leaves.
Start My Indiana Car Bill of Sale →Indiana car sale facts
| Titling agency | Indiana DMV ↗ |
| Title transfer deadline | 45 days from sale |
| Release of liability | File with Indiana DMV within 5 days |
| Buyer’s sales / use tax | 7% (Sales tax applies to private party vehicle purchases) |
| Bill of sale notary | Not required |
| Title fee (buyer pays) | $15 |
| Car identifier | VIN |
Your Indiana car post-sale checklist
- 1
Keep your signed Indiana bill of sale
This is your proof that you sold the car on the sale date. If the buyer gets a ticket, is in an accident, or fails to transfer the title within 45 days from the sale date, the Indiana 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 Indiana DMV
Most Indiana sellers file this online through Indiana 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. Indiana requires the buyer to title the car within 45 days — your release filing protects you if the buyer misses that deadline.
- 3
Cancel or transfer your auto insurance
Contact your insurer the same day you hand over the keys. Indiana 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 car with another, transfer the policy instead — many insurers offer a short grace period to bind coverage on the new vehicle.
- 4
Remove your license plates
In Indiana, plates go with the seller — not with the car. Remove the plate(s) before the buyer drives or rides away. You can return them to Indiana DMV or transfer them to your next vehicle.
- 5
Verify the 45-day title transfer window
Indiana requires the buyer to retitle the car at Indiana DMV within 45 days of the sale date. If you have not received confirmation that the title has been transferred by day 50, contact Indiana DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.
- 6
Confirm your Indiana tax obligations (seller's side)
Indiana charges 7% sales/use tax on private-party car sales — the buyer pays this at Indiana DMV when titling. Sales tax applies to private party vehicle purchases. Sellers generally do not owe Indiana sales tax, but if the car sold for more than your original purchase price you may owe federal capital gains tax. Consult a tax advisor.
- 7
Watch for liens or loan payoff confirmation
If you had a loan on the car, confirm the lender received the buyer's payoff and has released the lien on the Indiana title before you deliver the title. Indiana uses State Form 1014 as the lien release form — your lender will file this with Indiana DMV to clear the title record.
Indiana lien release procedure
- Obtain State Form 1014 from the Indiana BMV or the lienholder.
- Lienholder completes and signs State Form 1014 releasing the lien.
- Submit State Form 1014 with the existing title and title application at an Indiana BMV branch.
- Pay the title fee and receive a clean Indiana title.
Frequently Asked Questions — Indiana
How long do I have to file a release of liability in Indiana?▾
Indiana sellers should file a release of liability with Indiana DMV within 5 days of the sale. Most Indiana sellers can file this online directly through Indiana 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 Indiana title transfer deadline for a car?▾
Indiana requires the buyer to title the car within 45 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.
Do I owe Indiana sales tax on the car I just sold?▾
Indiana charges 7% sales/use tax on private-party car sales. Sales tax applies to private party vehicle purchases. The buyer typically pays this at Indiana DMV when titling — sellers generally owe no Indiana sales tax on the proceeds. You may owe federal capital gains if you sold for more than the original purchase price.
Does Indiana require a notary on the car bill of sale?▾
No. Indiana does not require notarization for a private car bill of sale. A signed bill of sale with both parties' full names, addresses, signatures, and the date is sufficient for Indiana DMV.
How does the buyer register the car in Indiana?▾
The buyer brings the signed bill of sale and endorsed title to Indiana DMV, pays the title fee (~$15) plus 7% sales/use tax, and receives a new Indiana title in their name. Transfer must be completed within 45 days of the sale date.
What if the buyer hasn't transferred the title yet?▾
In most states this is the buyer's responsibility, not yours. Filing a release of liability with your state DMV is the seller-side protection — it removes you from records as the registered owner so any post-sale tickets, accidents, or tolls fall on the buyer regardless of when the title is actually transferred.
Do I need to keep the bill of sale after the sale is complete?▾
Yes — keep your signed bill of sale for at least 5 years. If a parking ticket, toll, or accident occurs after the sale but before the buyer transfers the title, the bill of sale is your proof that the car was sold on the sale date. Store a scan and the original.
Used BillOfSaleNow for your sale?
Quick review helps other Indiana sellers find a tool that protects them.
Source: Indiana DMV ↗ · Last verified 2026-05-07