Oklahoma Titles
All over-the-road motor vehicles, travel trailers, commercial trailers, manufactured homes, boats, outboard motors (in excess of 10 horsepower) and medium-speed electrical vehicles require a title. All terrain and off-road motorcycles on which ownership has changed on or after July 1, 2005 are required to be titled and registered. Titles issued after July 1, 2022 may have a bold black bar printed above the mailing address.
Most vehicles are assessed a 3.25% excise tax on the basis of their purchase price, provided that purchase price is within 20% of the average retail value for that specific model vehicle. If the purchase price provided is not within that 20% range, a taxable value within that range is established for excise tax assessment purposes.
Sales tax is assessed at a rate of 1.25% of the purchase price, on all vehicle sales/transfers of ownership reflecting a sale date on or after July 1, 2017, unless a qualifying sales tax exemption applies. The purchase price may include a deduction for any dealer rebates or discounts. The purchase price may include a deduction for qualifying traded in vehicle.
When an out of state ownership document other than a title is submitted, or the vehicle is temporarily unavailable for inspection, an Oklahoma hold title record may be created. This allows the vehicle to be registered only – with the Oklahoma title remaining on “hold” until the proper document is presented, or inspection completed.
Active lien transfers
Starting November 1, 2021 titles with active liens can not be transferred. There are some exceptions: Adding an owner with the “and” relationship to the title. Changing a legal name (i.e. divorce or marriage). Transferring a vehicle into a trust name. Inheriting a vehicle from a deceased owner. Every other title transfer requires a title that is either lien free or has a lien release attached. To get a clean title you need the most recent Oklahoma title and the lien release papers – it will cost $11 to release. Lien releases must be original signature or a notarized copy to be accepted by the state.
Title Holding
Starting July 1, 2022 Oklahoma became a title holding state. This means that vehicles with active liens will not have a title sent out to the registered owner. Instead, all titles will be issued to the company the lien is registered with and held by them. Once the lien is paid off the lien company will release the title to the registered owner. Any duplicate titles issued after this date with an active lien will also go to the lienholder, even if a title has been issued to the owner previously.
Two Month Tag Title and Tax
Starting November 1, 2023 most vehicles now have two months to tag, title, and register with the state. The notary date on the title must read November 1, 2023 or later in order to qualify – purchase or pickup date is irrelevant. It is two months exactly to the date and NOT 60 days so the exact amount of days will vary. Vehicles that ARE eligible for the two month tag, title, and tax are: automobile, motorcycle, autocycle, commercial trailer, motor home (RV), travel trailer (camping trailer), commercial rental trailer, and park model. Every other vehicle transaction remains at 30 days from the notary date.
Trade In Off Sales Tax
Starting November 1, 2023 a trade in vehicles value can be exempted from the sales tax amount for most vehicles. This only applies to vehicles with a notary date on or after November 1, 2023. The trade in value is only subtracted for sales tax – you will still pay excise tax on the full amount the vehicle was purchased for. Vehicles that ARE eligible for trade in exemptions are: automobile, motorcycle, autocycle, and motor home (RV). Trade in tax exemptions are qualified by the vehicle being PURCHASED not the trade in vehicle. So if you are buying an RV and trading in a travel trailer you would qualify for the reduction because the purchased vehicle qualifies – even though the travel trailer does not. Conversely if you bought a travel trailer and traded in an RV you would NOT qualify for a trade in tax reduction. Every other vehicle transaction will pay the full vehicle purchase amount on excise and sales tax.
Buying Cars Out of State
Vehicles bought out of state have 60 days from the sale date on the title to be processed and registered in Oklahoma. to process tag title and tax in Oklahoma the out of state title, OK insurance, and ID is required. If it was bought from a dealership an itemized bill of sale is needed as well. Most out out of state dealerships mail the title paperwork directly to a tag agency, although some may mail it to the customer. Oklahomans buying from individuals out of state should get the title at time of purchase. An Oklahoma title will be sent out as long as the vehicle is lien free and a VIN inspection has been completed. A VIN inspection can be done after the fact at any time.
Same Owner Out of State
Vehicles registered and brought from out of state need to registered in Oklahoma within 30 days to avoid penalty. To do so the most recent registration or original title will be needed, OK insurance, and ID. If it was registered tribally before a matching valid tribal ID is required. An application for OK title will be needed for all vehicles, and any with a lien will need the lien verification form completed. Taxes are not charged as they have already been paid, so the cost is mostly registration and fees. It typically costs $85-200 (excepting electric vehicles) to process if the vehicle is not in penalty. An Oklahoma title will be sent out as long as the vehicle is lien free, the out of state title was turned in, and a VIN inspection was completed. The title and VIN inspection can be done at any time after the fact. Please check with your previous state for information on what to do with the out of state license plate(s).
Family Transfer
If you are gifting a car for $0 to a family member you may be eligible for a family transfer tax exemption. If you are transferring to a spouse, parent/step parent or a child/step child then the title transfer would qualify and excise tax would be exempt. Siblings, cousins, aunts or uncles, etc do not qualify for a family transfer. There is a form to fill out stating you are related – new changes mean the SELLER (aka the one gifting) must be the one to fill out the form. If the seller will not be present during the title transfer you will need to get the Family Affidavit form signed and notarized beforehand. If the tags are not due family transfers cost about $50 otherwise you need to factor in the cost of a tag renewal as well.
Out of State VIN Inspection
When a vehicle comes in from out of state a VIN inspection has to be done to release the Oklahoma title. A VIN inspection is just verifying the car VIN number and odometer. In the unfortunate event that the vehicle is out of state and unable to be inspected in Oklahoma an out of state VIN inspection can be done. This is typically done with the local DMV, police, or highway patrol. There are additional requirements for an out of state VIN that are listed clearly on the form below. Once the out of state VIN is done it can be mailed or brought in person to an OK tag agency to be filed so that the title may be released. We have to have the IN INK ORIGINAL form to remove the title hold. If there are no other holds or an active lien the title will be issued out to the last active address in 1-2 weeks.
Electronic Titles
July 1, 2025 Service Oklahoma changed the title format from print to electronic. After July, they rolled it back so only vehicles with an active lien would be required to be issued electronically. This format change does not affect the validity of previously printed Oklahoma titles, only the format of new titles. Regardless of lien status anyone moving, selling, or registering out of state may apply for a paper title.
To sell a vehicle with an electronic title a Bill of Sale of Electronic Title is needed, as well as an Odometer Statement for vehicles 2011 or newer. Just like a paper title the paperwork needs to be signed and notarized by the seller. Similarly the bill of sale of an electronic title needs to be an original copy free of any alterations/white out/ write overs. All the vehicle information needed to fill out the paperwork can be found on the registration.
