The short version
- The buyer pays 6.25% sales tax on the price or the car’s clean trade-in value, whichever is higher, plus a $75 title fee.
- The seller keeps the plates and can move them to another car or cancel the registration.
- Sales tax is due by the 20th of the month after the sale, and the car needs an inspection within seven days of being registered.
Massachusetts titles are handled by the Registry of Motor Vehicles (RMV). The seller signs the title over, and the buyer titles and registers the car at the RMV, paying the sales tax at the same time.
Not a private-sale title transfer?
- Buying from family? Transfers between parents, children, spouses and siblings are exempt from sales tax with Form MVU-26.
- Inherited a car? Inheritances are exempt too, with Form MVU-27.
- Moving to Massachusetts with your car? You’ll register it as a new resident right away, since there’s no grace period, and you’ll need to transfer your out-of-state license to Massachusetts as well.
How to Sign Over a Massachusetts Title as the Seller
Fill Out the Assignment of Title
On the back of the Certificate of Title, fill out the Assignment of Title with:
- The date of sale and the price
- The buyer’s and seller’s names, addresses and signatures
- The odometer reading
Hand the signed title to the buyer when you hand over the car. If the title shows a loan, pay it off first so your lender can release its lien. You also have to tell the buyer about any known defect that affects the car’s safety or use.
Keep or Cancel Your Plates
The plates stay with you, not the car.
Moving Them to Your Next Car
If you’re buying another car of the same type, you can put the plates on it and drive it until 5 p.m. on the seventh day after the sale, carrying a bill of sale that lists the registration number, while you transfer the registration.
Cancelling the Registration
If you’re not replacing the car, cancel the registration online. It’s free, you don’t have to return the plates, and you’ll get a cancellation receipt for your insurance company. Keep it with the bill of sale, since your town will want both before it abates the excise tax.
How to Title a Car Bought From a Private Seller in Massachusetts
Documents You Need
- The title, signed over to you, or a copy of the bill of sale and the last registration if the car is exempt from titling
- A Registration and Title Application stamped and signed by your Massachusetts insurance agent, on a policy no more than 30 days old
- Proof of identity, such as your driver’s license
- A lien release, if the title still shows a lender
- Payment by cash, card, or a check or money order payable to MassDOT
Register and Title the Car
- Buy insurance and have your agent stamp the application.
- Take your documents to an RMV Service Center. Our guide to Massachusetts RMV appointments explains booking.
- Pay the title fee, the registration fee and the sales tax.
- Get the car inspected within seven days of registering it.
Driving the Car Before It’s Registered
If you’ve just sold a car and moved its plates over, the seven-day rule above lets you drive the new one while you register it. Otherwise, our guide to Massachusetts temporary plates covers your options.
Massachusetts Sales Tax on a Private Car Sale
The buyer pays 6.25% of the price or the car’s clean trade-in value, whichever is higher. The car’s condition won’t lower the value used, and there’s no trade-in credit in a private sale. The tax is due by the 20th day of the month after the purchase, usually paid at the RMV with your application, and paying late adds interest and penalties.
Family, Gift and Inheritance Exemptions
- Family: Sales between parents and children, spouses and siblings are exempt with Form MVU-26. Grandparents, cousins, aunts and uncles don’t qualify.
- Gifts: A true gift from anyone else is exempt with Form MVU-24, but there’s a $25 gift transfer fee.
- Inheritance: A car you inherit is exempt with Form MVU-27.
Massachusetts Title Transfer Fees
| Item | Fee |
|---|---|
| Title | $75 |
| Sales tax | 6.25% of the price or clean trade-in value, whichever is higher |
| Registration, standard passenger plate | $60 for two years |
| Moving your plates to the new car | $25 |
| Gift from a non-family member | $25, no sales tax |
| Duplicate title | $25 |
| Annual inspection | $35 |
| Example: $12,000 private sale with new plates | $885 ($750 sales tax + $75 title + $60 registration) |
The example assumes the price is at or above the car’s clean trade-in value. If the book value is higher, the 6.25% is figured on that instead. After you register, our guide to Massachusetts registration renewal covers what comes next, including your town’s yearly excise bill.
Frequently Asked Questions
No. Sales between a parent and child are exempt, as are sales between spouses and siblings, with Form MVU-26. You’ll still pay the title and registration fees.
No. The assignment asks for the buyer’s name and address, so fill them in before you hand it over. A title left blank can be passed to someone else without ever being registered in the buyer’s name.
Keep them. Move them to your next car within seven days, or cancel the registration online so you can stop your insurance and claim an excise abatement.
The seller orders a duplicate title from the RMV for $25. Wait until it arrives, and check that the mileage on it matches the car, before you pay.
No. The seller and buyer sign the assignment on the back of the title, and no notary is required.
Possibly. If the car fails inspection within seven days of the sale and repairs are estimated at more than 10% of the price, you may be entitled to a refund, even in a private sale.
Conclusion
A Massachusetts private sale comes down to a properly signed title and the buyer’s trip to the RMV. Sellers should fill in every line of the assignment, keep their plates and cancel or transfer the registration. Buyers need an insurance-stamped application and should budget 6.25% sales tax on the price or book value, whichever is higher, plus $75 for the title. Get the car inspected within seven days of registering it, since a failed inspection in that window can entitle you to a refund.
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