Just Sold My Car in Vermont — What’s Next? (2026)
Need Vermont bill of sale documentation?
If you haven’t generated a Vermont-compliant bill of sale yet, do it now — your proof-of-sale window closes the moment the buyer leaves.
Start My Vermont Car Bill of Sale →Vermont car sale facts
| Titling agency | Vermont DMV ↗ |
| Title transfer deadline | 60 days from sale |
| Release of liability | File with Vermont DMV within 5 days |
| Buyer’s sales / use tax | 6% (Purchase and use tax applies to all vehicle sales) |
| Bill of sale notary | Not required |
| Title fee (buyer pays) | $35 |
| Car identifier | VIN |
Your Vermont car post-sale checklist
- 1
Keep your signed Vermont 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 60 days from the sale date, the Vermont 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 Vermont DMV
Most Vermont sellers file this online through Vermont 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. Vermont requires the buyer to title the car within 60 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. Vermont 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 Vermont, 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 Vermont DMV or transfer them to your next vehicle.
- 5
Verify the 60-day title transfer window
Vermont requires the buyer to retitle the car at Vermont DMV within 60 days of the sale date. If you have not received confirmation that the title has been transferred by day 65, contact Vermont DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.
- 6
Confirm your Vermont tax obligations (seller's side)
Vermont charges 6% sales/use tax on private-party car sales — the buyer pays this at Vermont DMV when titling. Purchase and use tax applies to all vehicle sales. Sellers generally do not owe Vermont 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 Vermont title before you deliver the title. Vermont uses VD-007 or Title Lien Section as the lien release form — your lender will file this with Vermont DMV to clear the title record.
Vermont lien release procedure
- Lienholder completes Form VD-007 or the lien release section on the existing Vermont title.
- Owner submits the lien release with the title and title application at a Vermont DMV office.
- Pay the title fee and receive a clean Vermont title.
Frequently Asked Questions — Vermont
How long do I have to file a release of liability in Vermont?▾
Vermont sellers should file a release of liability with Vermont DMV within 5 days of the sale. Most Vermont sellers can file this online directly through Vermont 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 Vermont title transfer deadline for a car?▾
Vermont requires the buyer to title the car within 60 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.
Do I owe Vermont sales tax on the car I just sold?▾
Vermont charges 6% sales/use tax on private-party car sales. Purchase and use tax applies to all vehicle sales. The buyer typically pays this at Vermont DMV when titling — sellers generally owe no Vermont sales tax on the proceeds. You may owe federal capital gains if you sold for more than the original purchase price.
Does Vermont require a notary on the car bill of sale?▾
No. Vermont 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 Vermont DMV.
How does the buyer register the car in Vermont?▾
The buyer brings the signed bill of sale and endorsed title to Vermont DMV, pays the title fee (~$35) plus 6% sales/use tax, and receives a new Vermont title in their name. Transfer must be completed within 60 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: Vermont DMV ↗ · Last verified 2026-05-07