Just Sold My Car in Louisiana — What’s Next? (2026)
Need Louisiana bill of sale documentation?
If you haven’t generated a Louisiana-compliant bill of sale yet, do it now — your proof-of-sale window closes the moment the buyer leaves.
Start My Louisiana Car Bill of Sale →Louisiana car sale facts
| Titling agency | Louisiana DMV ↗ |
| Title transfer deadline | 40 days from sale |
| Release of liability | File with Louisiana DMV within 5 days |
| Buyer’s sales / use tax | 4.45% (Sales tax applies; parish taxes vary significantly) |
| Bill of sale notary | Required |
| Title fee (buyer pays) | $69 |
| Car identifier | VIN |
Your Louisiana car post-sale checklist
- 1
Keep your signed Louisiana 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 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
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 car within 40 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. 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 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 Louisiana, 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 Louisiana DMV or transfer them to your next vehicle.
- 5
Verify the 40-day title transfer window
Louisiana requires the buyer to retitle the car 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
Confirm your Louisiana tax obligations (seller's side)
Louisiana charges 4.45% sales/use tax on private-party car 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 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 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.
Louisiana lien release procedure
- Obtain Form DPSMV 1863 from the Louisiana OMV or the lienholder.
- Lienholder completes and signs DPSMV 1863 releasing the lien.
- Submit DPSMV 1863 with the existing title and title application at a Louisiana OMV office.
- 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 car?▾
Louisiana requires the buyer to title the car 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 car I just sold?▾
Louisiana charges 4.45% sales/use tax on private-party car 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 car bill of sale?▾
Yes. Louisiana requires notarization of the car 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 car 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 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.
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Source: Louisiana DMV ↗ · Last verified 2026-05-07