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 attatched. To get a clean title you need the most recent Oklahoma title and the lien relsease 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 you have will vary by the month it is bought and the follows. 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 that have been bought out of state can be registered and titled in Oklahoma at our tag agency. For vehicles that have been bought out of state the title, Oklahoma insurance, and a valid ID is required. If it was bought from a dealership the itemized bill of sale is required, otherwise a declaration of purchase price form can be filled out here. You will pay both excise and sales tax along with registration and miscellaneous fees so it will be the same as titling a car you bought in Oklahoma. Regardless of how long the state you bought your vehicle in has to register and title vehicles you will need to do it within 60 days to avoid penalty in Oklahoma. Sometimes out of state dealers will collect money from you for your Oklahoma taxes and will mail your title packet and check to a tag agency for them to process. You will need to be aware of this and look out for a call from a tag agency in order to finalize your title. You will also need to be aware if you need to fill out a sales tax waiver for the taxes of the state you are buying the car in. An application for Oklahoma title and a VIN inspection is also required which can be completed here. If the car is not present the VIN inspection can be delayed, but you will not receive your physical title until the inspection is complete.
Same Owner Out of State
Vehicles that have been registered out of state can be registered and titled in Oklahoma at our tag agency. You will need either a copy of registration or the title both in your name, Oklahoma insurance, and a valid ID is required. An application for Oklahoma title and a VIN inspection (Form 701-6) is also required which can be completed here or brought in and filled out. Additional paperwork (Form 797-B) is required if the vehicle currently has an active out of state lien. All of these forms require the current owners signature to be notarized. If the car is not present the VIN inspection can be delayed, but you will not receive your physical title until the inspection is complete. If you brought in an out of state registration card in lieu of a title your Oklahoma title will be on hold until the out of state title has been turned in to Oklahoma. You will pay registration, title, transfer, tire waste, and a few other small fees. You will not pay excise or sales tax if it is already titled in your name. Most out of state same owner transfers are between $100-200 although some factors can change that price. You have 30 days from the entry date of the car to register it in Oklahoma before incurring penalty.
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.
