Step-by-Step Title Transfer Process
The title transfer process follows these key steps in states that require boat titles:
Seller Signs the Title
The seller must sign the title on the designated assignment section. This includes the date of sale, purchase price, seller's signature, and printed name. Both buyer and seller should complete their respective sections.
Obtain a Lien Release (If Applicable)
If the boat has an outstanding loan, the seller must pay it off and obtain a lien release from the lender. This document must be submitted with the title transfer application.
Complete the Title Application
The buyer fills out the state's title application form. This typically requires the vessel description, HIN, purchase price, and buyer's personal information.
Pay Fees and Sales Tax
Submit the signed title, application form, and payment for the title transfer fee and applicable sales/use tax to the state agency.
Receive New Title and Registration
The state issues a new title in the buyer's name. In most states, you can simultaneously apply for new registration at the time of title transfer.
Required Documents
Seller Must Provide
- Signed title (on the assignment section)
- Bill of sale with purchase price and date
- Lien release (if the boat was financed)
- Current registration certificate
- Photo ID
Buyer Must Provide
- Completed title application form
- Photo ID
- Payment for title fee, registration, and sales tax
- Proof of insurance (required in some states)
- Lien information (if financing the purchase)
Title Transfer Fees by State
Title fees vary by state. Here are the fees for states that require boat titles:
| State | Title Fee | Sales Tax Rate | Sales Tax Cap |
|---|---|---|---|
| Alabama | $25.00 | 4% | No cap |
| California | $9.00 | 7.25% | No cap |
| Colorado | $7.20 | 2.9% | No cap |
| Connecticut | $25.00 | 6.35% | No cap |
| Florida | $5.25 | 6% | No cap |
| Georgia | $0.00 | 4% | No cap |
| Hawaii | $20.00 | 4% | No cap |
| Illinois | $15.00 | 6.25% | No cap |
| Indiana | $15.00 | 7% | No cap |
| Iowa | $13.50 | 6% | No cap |
| Kentucky | $9.00 | 6% | No cap |
| Louisiana | $26.00 | 4.45% | No cap |
| Maryland | $20.00 | 5% | $16,000 |
| Michigan | $5.00 | 6% | No cap |
| Missouri | $7.50 | 4.225% | No cap |
| Montana | $12.00 | None | No cap |
| Nebraska | $10.00 | 5.5% | No cap |
| Nevada | $20.00 | 8.375% | No cap |
| New Jersey | $60.00 | 6.625% | No cap |
| New Mexico | $10.00 | None | No cap |
| New York | $50.00 | 8% | No cap |
| North Carolina | $30.00 | 3% | $1,500 |
| Ohio | $15.00 | 5.75% | No cap |
| Oklahoma | $2.25 | None | No cap |
| Oregon | $75.00 | None | No cap |
| Pennsylvania | $15.00 | 6% | No cap |
| Rhode Island | $0.00 | 7% | No cap |
| South Carolina | $20.00 | 5% | $500 |
| South Dakota | $10.00 | None | No cap |
| Tennessee | $14.50 | 7% | No cap |
| Texas | $27.00 | 6.25% | $18,750 |
| Utah | $6.00 | 6.85% | No cap |
| Virginia | $10.00 | 2% | No cap |
| Washington | $5.00 | 6.5% | No cap |
| West Virginia | $15.00 | 6% | No cap |
| Wisconsin | $5.00 | 5% | No cap |
| Wyoming | $15.00 | 4% | No cap |
States That Don't Require Titles
These 13 states do not require boat titles. In these states, ownership is established through registration and a bill of sale:
Special Transfer Situations
Gifting a Boat
When gifting a boat, the title must still be transferred. Many states offer sales tax exemptions for gifts between immediate family members (spouse, parent, child, sibling). You'll typically need to:
- Complete a gift affidavit or declaration
- Submit the signed title with the gift notation
- Pay the title transfer fee (though sales tax may be waived)
Inherited Boats
Transferring a title for an inherited boat typically requires:
- Certified copy of the death certificate
- Letters testamentary or letters of administration from the probate court
- The original title (or duplicate title application)
- New title application in the heir's name
Abandoned or Bonded Titles
If you've acquired a boat without a proper title (e.g., abandoned or purchased without documentation), some states offer a bonded title process:
- You purchase a surety bond for the vessel's value
- The state issues a "bonded title" which converts to a clear title after a waiting period (usually 3-5 years)
- Not all states offer this option — check your state's specific process
Title Transfer Checklist
Frequently Asked Questions
What is a boat title transfer?
A boat title transfer is the legal process of changing ownership of a vessel from one person (or entity) to another. It involves the seller signing the title over to the buyer and the buyer filing the transfer with the state titling agency.
How much does a title transfer cost?
Title transfer fees vary by state, typically ranging from $5 (Michigan) to $27 (Texas). Additional costs may include sales/use tax on the purchase price, registration fees, and any lien recording fees.
Can I transfer a title without the original?
If the original title is lost, the seller must first apply for a duplicate title before the transfer can be processed. Never purchase a boat from a seller who claims they cannot obtain the title.
How long does a title transfer take?
Processing times vary. In-person transfers are often completed the same day. Mail-in transfers can take 2-4 weeks. Online transfers (where available) are typically processed within 1-2 weeks.
Do I need a title transfer for a gift or inheritance?
Yes. Even when a boat is gifted or inherited, the title must be officially transferred. Many states have exemptions for sales tax on gifts between family members, but the title transfer filing is still required.
What if there's a lien on the boat?
The lien must be satisfied (paid off) before the title can be transferred. The lien holder must provide a lien release to the titling agency. Never complete a purchase until you have confirmed all liens are cleared.
