Bill of Sale Aug 13, 2026
Selling or buying a used car in Arkansas comes with more paperwork than most people expect. A bill of sale sits at the center of that paperwork, yet plenty of Arkansans still aren't sure exactly when they need one, what it must include, or how it connects to sales tax and the title transfer.
This guide walks through the current rules published by the Arkansas Department of Finance and Administration (DFA), so both sides of a private sale can complete the transaction without an extra trip to the revenue office. If you're getting ready to sell privately, KarKiosk can help you list the vehicle and connect with a serious buyer before you ever print the form.
What Is a Bill of Sale in Arkansas?
A bill of sale is a short written record of a private vehicle sale. It shows who sold the car, who bought it, which vehicle changed hands, and how much money was involved. It is not the same thing as a title. A title proves legal ownership, while a bill of sale simply proves that a transaction happened, on a specific date, for a specific price, between two named people.
For most title transfers, Arkansas will accept a properly completed title in place of a standalone bill of sale (Source: Arkansas DFA – Vehicle Tag Renewal). But a bill of sale still matters in the specific situations covered below, and it is always smart to keep one for your own records.
Is a Bill of Sale Required in Arkansas?
Technically, no — but only under certain conditions. Arkansas's documented title transfer rules list an invoice or bill of sale reflecting the full purchase price, including any trade-in information, as one of the standard documents needed to register and title a new or used vehicle.
● If the seller signs the back of a recent Arkansas title with the sale price, odometer reading, and date filled in, that may satisfy the requirement on its own (Source: Arkansas DFA)
● If the title's control number is below 3003001, or an out-of-state title is being surrendered, a separate bill of sale and matching odometer statement must accompany the title (Source: Arkansas DFA)
● If you want to claim the sales tax credit for a vehicle you sold within 60 days of buying another one, a bill of sale signed by both parties is required (Source: Arkansas DFA – Sales Tax Credit for Sale of a Used Vehicle)
Even outside these situations, a signed bill of sale protects both sides if a dispute comes up later about price, date, or condition at the time of sale. Printable state forms are available through the DFA's motor vehicle forms page, linked below in the FAQ section.
What Information Must an Arkansas Bill of Sale Include?
Arkansas does not require a specific form, but any document you use should include the fields below so it holds up at the Revenue Office and protects both parties.
| Required Field | What to Enter |
|---|---|
| Seller & buyer names | Full legal names and current addresses of both parties |
| Vehicle description | Year, make, model, and body style |
| VIN | Full 17-digit Vehicle Identification Number |
| Odometer reading | Mileage at time of sale, required by federal law for vehicles under 20 years old |
| Sale price | Total amount paid, plus trade-in details if a trade-in reduced the price |
| Sale date | The exact date ownership changed hands |
| Signatures | Both seller and buyer must sign |
Bill of Sale vs. Title Transfer: What's the Difference?
These two documents work together, not against each other. Here is how they differ in practice.
| Fields | Bill of Sale | Title Transfer |
|---|---|---|
| What it proves | A transaction took place on a set date, at a set price | Legal ownership of the vehicle |
| Required by DFA? | Only in specific cases (tax credit, no signature room on title) | Always, within 60 days of sale |
| Filed with the state? | Kept by both parties for their records | Submitted to the Revenue Office |
| Needed for registration? | Supporting document in some situations | Yes, always |
Step-by-Step: Completing a Vehicle Sale in Arkansas
1. Agree on a price and inspect the vehicle together, ideally with a mechanic if it's a higher-value sale.
2. Fill out a bill of sale with both parties present, including the VIN, odometer reading, and sale price.
3. Sign the back of the title over to the buyer, or complete the state's separate bill of sale and odometer statement if the title's control number is below 3003001 (Source: Arkansas DFA)
4. Complete the federally required odometer disclosure for any vehicle less than 20 years old (Source: Arkansas DFA)
5. The buyer titles and registers the vehicle within 60 calendar days of the sale date to avoid penalties (Source: Arkansas DFA)
6. The buyer pays the applicable sales tax, title fee, and registration fee at a state Revenue Office or through MyDMV.
Both parties should keep a signed copy of the bill of sale for at least a few years after the sale, since it is the easiest way to prove the transaction took place if a question ever comes up.
Sales Tax, Title Fees, and Registration Costs in Arkansas
Arkansas charges a 6.5% state sales and use tax on motor vehicles with a gross purchase price of $4,000 or more, rising to 7% for Texarkana residents (Source: Arkansas DFA). Local city and county taxes may also apply, capped at $25 for each 1% of local tax due.
If the invoice or bill of sale shows a trade-in credit, tax is computed only on the difference between the total price and the trade-in value. The same kind of credit is available if you sold your old vehicle privately, rather than trading it in, within 60 days before or after buying the new one (Source: Arkansas DFA). A bill of sale documenting that private sale is what makes the credit possible.
On top of sales tax, the state's official fee schedule sets a flat $10 title fee, plus a weight-based registration fee for passenger vehicles: $17 for vehicles up to 3,000 pounds, $25 for 3,001–4,500 pounds, and $30 for vehicles over 4,500 pounds, each with a $2.50 validation decal fee added on (Source: Arkansas DFA – Motor Vehicle Registration Fee Schedule).
Missing the 60-day registration deadline triggers separate penalties: $3 for every 10-day period past the deadline on the registration side, plus a 10% penalty on any unpaid sales tax, so it pays to complete the paperwork promptly.
Odometer Disclosure Requirements
Arkansas requires a fully completed odometer disclosure statement, signed by both buyer and seller, for any vehicle less than 20 years old (Source: Arkansas DFA). This isn't just a state formality — it traces back to federal law, and the stakes are real.
Federal research from the National Highway Traffic Safety Administration found roughly 452,000 cases of odometer fraud occur across the U.S. each year (Source: NHTSA), which is exactly why the disclosure statement asks both parties to sign off on the exact mileage at the moment of sale. Filling it out carefully protects the buyer from an inflated price and protects the seller from later disputes about the car's condition.
Notarization: Is It Required in Arkansas?
No. Arkansas does not require notarization for most private-party vehicle bills of sale. A signed document from both the buyer and seller is generally sufficient for Revenue Office purposes. That said, notarizing is never a bad idea for a higher-value sale, since it adds an extra layer of proof if a disagreement comes up later.
Common Mistakes to Avoid When Using a Bill of Sale in Arkansas
● Leaving the sale price blank or vague — the Revenue Division can assess tax on fair market value if the price looks unclear, so always write the actual agreed amount.
● Forgetting to note a trade-in or a sold vehicle — skipping this detail means paying more sales tax than necessary.
● Mismatched VIN entries between the title and the bill of sale, which can delay registration.
● Skipping the odometer statement on a vehicle under 20 years old.
● Not keeping a copy — once the title goes with the buyer, the seller's only proof of the sale is their copy of the bill of sale.
Arkansas Vehicle Market Snapshot
Arkansas had 2,898,380 registered vehicles as of 2026 (Source: Arkansas Department of Transportation), meaning a private vehicle sale is a routine transaction across the state, not a rare event. That volume is exactly why the DFA leans on a standardized bill of sale process: it keeps tax collection and title transfer consistent whether the sale happens in Little Rock or a small town in the Delta.
Final Thoughts
A bill of sale is a small piece of paper that protects a fairly large purchase. Filling it out correctly, alongside the title transfer and odometer disclosure, keeps both the buyer and the seller covered and helps the sale move through the Revenue Office without delays. If you're on the selling side and want to reach a wider pool of serious Arkansas buyers before you get to the paperwork stage, KarKiosk is built for exactly that.
