Texas Bill of Sale Template

A bill of sale in Texas is a legal document that records the transfer of personal property — most commonly a vehicle, boat, or other titled asset — from a seller to a buyer. The document establishes the purchase price, condition, and transfer date, serving as critical evidence for DMV title transfer, sales tax calculation, and liability protection. In Texas, a bill of sale is not strictly required by the Texas DMV for title transfer, but is strongly recommended and commonly requested by county tax offices. Regarding notarization, not required for private-party vehicle sales, but a notarized bill of sale strengthens documentation and may be required for vessels and certain high-value transactions. Texas uses Form 130-U (Application for Texas Title and/or Registration) is the primary DMV form; no state-mandated bill of sale form exists. The purchase price stated on the bill of sale directly determines the sales tax owed: 6.25% motor vehicle sales tax paid by the buyer — applied to the purchase price or 80% of Standard Presumptive Value (SPV), whichever is higher.

Without a bill of sale, both parties face significant risks. The seller remains liable for parking tickets, tolls, and accidents involving the vehicle until title transfer is complete. The buyer lacks proof of the agreed purchase price and may be assessed sales tax on the vehicle's full fair market value instead. For vehicles, a bill of sale should always accompany the signed title certificate. For items without titles (furniture, electronics, equipment), the bill of sale is the only legal proof of the transaction. Use our bill of sale generator to create a Texas-compliant document that protects both parties. If the buyer is financing the purchase, pair it with a promissory note documenting the payment terms.