Michigan Car Title: Transfer Rules, 15-Day Deadline, and Fees

A Michigan car title transfer costs $15 and must be completed within 15 days of the sale. The buyer takes the signed title to a Secretary of State office (or completes the transfer online), shows a Michigan driver’s license or state ID and proof of no-fault insurance, and pays the $15 title fee plus 6% use tax on the purchase price or fair market value, whichever is greater.¹

What the Seller Does First

Before anything else, the seller has to sign the title over. That means filling out the assignment section on the back with their name, address, signature, and an accurate odometer reading. If the title lists more than one owner, every listed owner has to sign. Miss a signature and the buyer can’t complete the transfer.¹

The seller also has to provide a written odometer disclosure. On most vehicles that disclosure lives in the assignment section of the title itself. It has to state the current mileage, whether the reading is accurate, and identifying information for both parties and the vehicle. Providing false odometer information carries civil liability and criminal penalties, and for the buyer this statement is the main legal protection against a rolled-back odometer.²

A handful of vehicles are exempt from the odometer statement: anything with a gross vehicle weight rating over 16,000 pounds, model year 2010 and earlier, trailers and other non-self-propelled equipment, and low-speed or scrap vehicles.² For a normal passenger car built in the last decade or so, assume the disclosure is required.

What the Buyer Brings to the SOS Office

Once the title is signed, the buyer takes it to a Secretary of State branch with:

A Michigan driver’s license or state ID
Proof of Michigan no-fault insurance on the vehicle
The $15 title transfer fee
6% use tax on the purchase price or the vehicle’s fair market value, whichever is greater

You can register the vehicle and get plates during the same visit. The new title is mailed to you after the transfer is processed.¹

The “whichever is greater” rule matters. If a friend sells you a car for $2,000 but its fair market value is $8,000, the tax is 6% of $8,000. Writing a low number on the title won’t reduce what you owe.

Transferring the Title Online

Michigan offers an online title transfer through the Secretary of State’s website that saves both parties a trip to a branch office. The seller still has to fill out the paper title’s assignment section and hand it to the buyer. From there, everything else moves online.³

The buyer generates a buyer code through their online SOS account. The seller logs in, locates the vehicle, enters the buyer code, confirms the sale price, date, and odometer reading, and uploads photos of their ID. The buyer then has 48 hours to confirm the transaction. Once both sides finish, the SOS reviews and approves the transfer within about three business days.³

If the online transfer is denied, the buyer has to complete the process in person. Until that happens, state records still show the seller as the owner.³

The 15-Day Deadline

Michigan law gives the buyer 15 days from the sale date to transfer the title. Miss that window and you owe an additional $15 late fee on top of the standard transfer fee.¹

The bigger risk isn’t the fee. Operating a vehicle without proper registration in Michigan can be charged as a misdemeanor carrying up to 90 days in jail or a fine of up to $100.⁴ A routine traffic stop can become a much larger problem. Don’t sit on the paperwork.

Gifting a Vehicle to Family

A gift to a qualifying family member follows the same steps but is exempt from the 6% use tax. The donor fills out the assignment section indicating the transfer is a gift, and the recipient brings the title to an SOS office with ID, proof of insurance, and the $15 fee.⁵

Michigan’s list of qualifying relationships is broader than most people realize:

Spouse, parent, child, brother, sister
Stepparent, stepchild, stepbrother, stepsister, half-brother, half-sister
Grandparent, grandchild
Father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent-in-law
Legal ward or legally appointed guardian of the previous owner

The Department of Treasury may ask you to document the relationship. Claiming an exemption you don’t qualify for can trigger penalties of up to 175% of the tax owed, plus potential criminal prosecution.⁵

When the Previous Owner Has Died

If the vehicle is titled jointly with the phrase “Full Rights to Survivor,” the surviving owner transfers it into their name alone by bringing the title, a copy of the death certificate, and a driver’s license or state ID to an SOS office. No probate involved.⁶

Without that survivorship language, the deceased owner’s share becomes part of their estate. That means probate or a distribution to heirs, which can delay things considerably. Worth checking before you need it.

If the deceased owner didn’t leave other property requiring probate, the surviving spouse or closest heir can apply for a new title directly. Bring the existing title (or the plate number), a certified copy of the death certificate, your ID, and a completed TR-40a Certification from the Heir to a Vehicle form to an SOS office.⁷ The $15 fee and any applicable tax still apply.⁸ If the estate is going through probate, the executor handles the transfer using court-issued letters of authority.

Out-of-State Titles

Bringing a vehicle into Michigan from another state means converting the out-of-state title to a Michigan one. Visit an SOS office with:

The out-of-state title
Proof of Michigan no-fault insurance
Valid ID
The $15 title fee and 6% use tax
A bill of sale or purchase agreement if bought from a dealer

The vehicle may need a VIN inspection to confirm the number matches the out-of-state title.¹

Salvage and Rebuilt Vehicles

Transferring a salvage vehicle involves considerably more than a standard transfer. Before the Secretary of State will issue a rebuilt salvage title, a specially trained officer has to inspect the vehicle and certify four things: the VIN and parts identification numbers are correct, you have proof of ownership for all repair parts used, the vehicle meets Michigan’s equipment standards, and a licensed mechanic in the relevant specialty has certified the repairs.⁹

The rebuilt salvage brand stays on the title permanently and affects resale value and insurance eligibility. If repair costs reach 91% or more of the pre-damage value, the vehicle gets a scrap title instead and cannot be rebuilt for road use.⁹

Buying Out a Lease

To take title to a leased vehicle you first need the leasing company’s cooperation. That means paying the remaining lease balance or meeting whatever buyout terms your agreement specifies. Once the leasing company agrees, they release the title to you or send it to an SOS office. Michigan law requires the lessor to notify the lessee in writing before executing a transfer and to obtain a signed odometer disclosure from the lessee.²

Once you have the title in hand, the rest matches the standard process: SOS office, ID, proof of insurance, $15 fee, and 6% use tax on the buyout price. Read your lease before starting, since some agreements add purchase-option fees on top of the residual value.

Buying From a Dealer

If you buy from a dealership, the dealer handles the title application, registration, and sales tax collection. You generally won’t need to visit an SOS office at all. Dealers must file the title application with the Secretary of State within 21 days of delivering the vehicle.¹⁰ If several weeks pass and you still haven’t seen title paperwork, follow up with the dealer.

Plates Don’t Come With the Car

In a private sale, Michigan license plates do not transfer with the vehicle. The seller removes the plates before handing the vehicle over. The seller can keep them for another vehicle they own (after applying and paying the transfer fee) or transfer them to an immediate family member receiving the vehicle, meaning a spouse, parent, sibling, or child.¹¹

The buyer either applies for new plates or transfers plates they already have from another vehicle. Handle it during the same SOS visit as the title.¹

If the Title Is Lost or Damaged

If the title has been lost, destroyed, or is too damaged to read, you need a duplicate before a transfer can happen. You can apply for a duplicate through your online Secretary of State account. The fee is $15. If the vehicle has an active lien, the duplicate goes to the lienholder rather than to you.¹²

Sellers should handle this before listing the vehicle. Buyers should not hand over money on the promise that a title is “on its way.” Wait until you have a signed physical title in hand or confirmation that the duplicate has been issued.

1
Michigan Department of State. Buying, Selling, or Leasing – Vehicle Ownership
2
Michigan Legislature. MCL 300-1949-II – Transfers of Title or Interest
3
State of Michigan. Online Title Transfer: Seller Transfer
4
Michigan Legislature. Michigan Code 257.256
5
State of Michigan. Title Transfer and Vehicle Registration
6
State of Michigan. Titles – State of Michigan
7
State of Michigan. Transferring Vehicle Ownership of a Deceased Family Member
8
Michigan Legislature. Michigan Code 257.236 – Procuring Title to Vehicle Acquired by Operation of Law
9
Michigan Legislature. Michigan Code 257.217c
10
State of Michigan. Dealer Manual Chapter 3 – Title and Registration Requirements
11
Michigan Legislature. Michigan Code 257.233
12
State of Michigan. Title Transfer and Vehicle Registration