BillOfSaleNow

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

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

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Minnesota car 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
Car identifierVIN

Your Minnesota car post-sale checklist

  1. 1

    Keep your signed Minnesota 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 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 car within 10 days — your release filing protects you if the buyer misses that deadline.

  3. 3

    Cancel or transfer your auto 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 car with another, transfer the policy instead — many insurers offer a short grace period to bind coverage on the new vehicle.

  4. 4

    Remove your license plates

    In Minnesota, 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 Minnesota DMV or transfer them to your next vehicle.

  5. 5

    Verify the 10-day title transfer window

    Minnesota requires the buyer to retitle the car 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 car 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 car 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 car, 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.

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 car?

Minnesota requires the buyer to title the car 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 car I just sold?

Minnesota charges 6.5% sales/use tax on private-party car 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 car bill of sale?

No. Minnesota 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 Minnesota DMV.

How does the buyer register the car 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 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 Minnesota sellers find a tool that protects them.

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

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