Bill of Sale Aug 21, 2026
Selling or buying a used car in Indiana comes with paperwork, and getting it right the first time saves you a trip back to the Bureau of Motor Vehicles (BMV). A bill of sale is one of the documents that keeps popping up in this process, and knowing when you need one, what it must contain, and how it fits with the title transfer can save you real time and money.
This guide walks through Indiana's bill of sale rules using only official state and federal sources, so you can complete your transaction with confidence.
What Is an Indiana Bill of Sale?
A bill of sale is a written record of a vehicle sale. It captures who sold the car, who bought it, what vehicle changed hands, and for how much. In Indiana, the standard version is State Form 44237, and it is used to record a private-party transaction for BMV purposes.
Think of it as a receipt with legal weight. It doesn't replace the certificate of title, but it backs up the sale price, the date, and the identities of both parties if a question ever comes up.
Is a Bill of Sale Required in Indiana?
Here's where a lot of confusion happens. In most everyday transactions, the certificate of title itself does the heavy lifting of transferring ownership, because Indiana titles have a built-in assignment section for the seller and buyer to complete.
According to the Indiana BMV, a bill of sale can only be used to transfer vehicle ownership in very limited circumstances, and it cannot be used for a vehicle that is required to have a certificate of title by law. It's accepted as proof of ownership mainly when:
The person is voluntarily titling a vehicle that isn't legally required to be titled, or
The prior owner was never required to obtain a title in the first place
Even outside of those specific cases, a bill of sale is still routinely requested and useful because it documents the purchase price, which the BMV needs to calculate sales tax, and it protects both parties if a dispute arises later.
Source: Indiana BMV — Proof of Vehicle Ownership: Bill of Sale
What Information Must Be Included on Form 44237
Indiana's bill of sale form asks for specific details. Missing information is one of the top reasons a BMV branch visit gets delayed, so double-check that your document includes:
Full names and addresses of the buyer and seller
Vehicle year, make, model, and Vehicle Identification Number (VIN)
Date of sale
Purchase price
Odometer reading (when required — more on that below)
Signatures of both buyer and seller
No notary or witness signature is required for this form, which keeps the process simple for private sales.
Bill of Sale vs. Certificate of Title in Indiana
Buyers and sellers often mix these two documents up. Here's how they differ:
| Feature | Bill of Sale (Form 44237) | Certificate of Title |
|---|---|---|
| Legally transfers ownership | Only in limited exempt cases | Yes, in almost all cases |
| Required for BMV title application | Often requested as supporting proof | Always required |
| Records purchase price for sales tax | Yes | Not always detailed |
| Notarization needed | No | No (signatures only) |
| Issued by | Buyer and seller (self-prepared) | Indiana BMV |
Step-by-Step: How to Complete a Bill of Sale in Indiana
- Download or obtain Form 44237 from the BMV or use a compliant template.
- Fill in vehicle details exactly as they appear on the title — a mismatched VIN is a common rejection reason.
- Agree on and record the purchase price. This number matters because Indiana sales tax is calculated on it.
- Complete the odometer section, if the vehicle isn't exempt.
- Both parties sign and date the form.
- Keep a copy for your own records even after the title is transferred.
Odometer Disclosure Requirements
Federal law requires an odometer disclosure for most vehicle transfers, and Indiana follows this rule through its own Odometer Disclosure Statement (State Form 43230) when the reading isn't captured directly on the title.
Under the current federal rule from the National Highway Traffic Safety Administration (NHTSA), odometer disclosure is required for every ownership transfer for the vehicle's first 20 years, starting with model year 2011. Before this change took effect, the cutoff was only 10 years. Model year 2010 and older vehicles remain exempt from federal odometer disclosure.
Source: NHTSA — Consumer Alert: Changes to Odometer Disclosure Requirements
That means if you're selling a 2011 model year vehicle in 2026, you still need to disclose the mileage — that requirement doesn't lift until 2031.
Sales Tax, Title, and Registration Fees in Indiana
Money matters as much as paperwork. Here's what the state currently charges, according to the Indiana BMV's official fee chart:
| Item | Amount |
|---|---|
| Sales tax on purchase price | 7% |
| Issue, duplicate, or replace title | $15.00 |
| Passenger vehicle registration | $21.35 |
| Transportation Infrastructure Improvement Fee (TIIF) | $15.00 |
| Administrative penalty for late title | $30.00 |
| Administrative penalty for late registration | $15.00 |
Sources: Indiana BMV Fee Chart, Indiana DOR — Vehicle Dealers, 7% Sales Tax
If you're buying from a dealer, the dealer typically collects sales tax at the time of purchase and provides proof on Form ST-108. If you're buying from a private seller, you'll pay that 7% directly at the BMV branch when applying for your title.
Deadlines: How Long Do You Have to Transfer a Title After Buying?
According to the Indiana BMV, the certificate of title must be applied for within 45 days after the vehicle is purchased or otherwise acquired. Missing this window results in an administrative penalty, so it's worth putting a reminder on your calendar the day you buy.
Source: Indiana BMV — Buying & Selling a Vehicle
Small paperwork task, big consequence if you let it slide — a missed deadline turns into an extra fee for no real benefit.
Buying a Car in Indiana: What You Need
When you're the buyer, plan to bring:
The signed certificate of title from the seller, with the odometer section completed
A bill of sale, if applicable to your situation
A valid, government-issued photo ID
Proof of current insurance
Payment for sales tax and BMV fees
Selling a Car in Indiana: What You Need
Sellers have their own short checklist. The Indiana BMV specifically notes that the seller should remove the license plate from the vehicle at the time of sale, since Indiana doesn't require plates to be returned to the BMV — you can transfer that plate to another vehicle you own instead.
Source: Indiana BMV — Buying & Selling a Vehicle
Before you hand over the keys:
Sign the title's seller section completely, including the odometer reading
Fill out a bill of sale with the buyer, especially if the sale price needs documenting
Remove your license plate
Consider notifying your insurance provider that coverage on the vehicle is ending
Gifting a Vehicle in Indiana
Not every transfer involves money changing hands. If you're giving a car to a family member, Indiana has a separate path for that. The sale can be exempt from sales tax, but you'll need to complete the appropriate BMV exemption form to document that the transfer is a gift rather than a sale. Keep in mind that even a gifted vehicle still needs the title properly signed over, and the same 45-day application window applies.
A bill of sale isn't usually the right document for a gift transfer since there's no purchase price to record, but some sellers still fill one out with "$0" or "gift" noted, along with a signed statement, just to have a paper trail.
Out-of-State Purchases and Title Transfers
Buying a vehicle from outside Indiana adds a few extra steps. Vehicles titled in another state generally need a VIN inspection before Indiana will issue a title, which can be done free of charge at any Indiana BMV branch. If a law enforcement officer performs the inspection instead, they may charge up to $5.
If a lien is still attached to an out-of-state title, you'll need to complete a Request for Title (State Form 1014) so the BMV can contact the lienholder directly.
Source: Indiana BMV — Buying & Selling a Vehicle
Why Documentation Matters More Than It Seems
It's easy to treat a bill of sale as a formality, something to rush through so you can get to the branch counter. But this small document does real work. If a parking ticket or toll bill shows up for the vehicle after you've sold it, a dated and signed bill of sale is your evidence that you weren't the owner anymore. If the buyer disappears without registering the car and it gets into an accident, that same document shows exactly when responsibility changed hands.
On the buyer's side, a clear bill of sale with the correct purchase price protects you if the BMV ever questions the sales tax you paid. It's a two-minute task that can save hours of back-and-forth later.
Incomplete forms are a common reason for delays at the branch.
Since Indiana calculates sales tax from this number, the BMV can substitute fair market value if the listed price looks understated.
Odometer disclosure on a vehicle that isn't yet exempt.
This triggers an administrative penalty.
This is important before completing a sale.
Common Mistakes to Avoid
1
Leaving fields blank on the bill of sale
2
Writing an inaccurate sale price
3
Forgetting the odometer disclosure
4
Missing the 45-day title application window
5
Not removing the license plate
How KarKiosk Makes Selling Your Car in Indiana Easier
Paperwork is only one piece of a private car sale — pricing it right, listing it well, and actually finding a serious buyer takes more effort. KarKiosk is built for private sellers who want a straightforward way to list their vehicle, connect with buyers, and move through the sale process without the runaround of traditional classifieds. Once you've agreed on a price, you can use the guidance in this article to complete your Indiana bill of sale and title transfer with confidence.
