Private Party Car Sale in Texas — State Requirements
Selling your car to a private buyer in Texas? Plates stay with the seller. Smog certificate is not required. Buyer has 30 days to transfer the title.
Required Documents for Texas Private Car Sale
Form 130-U must be completed by the buyer and submitted to the county tax office with the signed title. The odometer disclosure on the title is mandatory for vehicles under federal exemption thresholds.
License Plates in Texas Private Sales
In Texas, license plates stay with the SELLER. Remove your plates before handing over the vehicle. The buyer must obtain new plates when they register the vehicle in their name. Texas plates are transferable between vehicles owned by the same person.
Sales Tax on Private Car Sales in Texas
Buyer pays 6.25% motor vehicle sales tax to TxDMV when titling the vehicle at the county tax office. For private-party sales, the tax is calculated on the higher of the purchase price or 80% of the vehicle's Standard Presumptive Value (SPV).
Texas SPV is set by TxDMV based on used vehicle sales data. If you paid less than 80% of SPV (e.g., selling to a family member at a discount), the buyer still pays tax on 80% of SPV. Gift transfers to qualified relatives are exempt from SPV tax.
Seller Notification Requirement in Texas
Texas sellers should submit VTR-346 (Release of Liability) to TxDMV within 30 days of the sale. This protects the seller from liability for parking tickets, tolls, and accidents after the sale. Submission is strongly recommended even though not strictly mandatory.
Seller Liability After Sale in Texas
Seller's liability ends at the point of title transfer. Texas plates stay with the seller, so there is no toll or registration liability to the seller after the vehicle changes hands.
Submit VTR-346 online at TxDMV.gov for the fastest protection. Keep a copy of the signed title as proof the vehicle was transferred on the sale date.
Frequently Asked Questions
Texas plates stay with the seller — remove them before handing over the vehicle. The buyer must acquire new plates within 30 days. Texas SPV (Standard Presumptive Value) means buyers cannot avoid tax by artificially reporting a low purchase price.