Selling a car in Mississippi: the tag, the title and your registration credit

The short version

The Department of Revenue's motor vehicle FAQ sets out a short list of rules for a private sale. The seller removes the license plate once the title is assigned. The plate cannot be moved to the seller's next vehicle. If either the vehicle or the owner changes, the old tag must be surrendered to the county tax collector. The unused part of the registration can be transferred to a new Mississippi registration, but Mississippi law does not allow refunds, and the credit is counted from the day the tag is turned in, not the day the car was sold.

Put together, that means the plate you unscrew in the buyer's driveway is worth something only if you take it to the tax collector, and it is worth a little less every day it sits in your garage.

Step 1: assign the title correctly

The Department says the title must be assigned to the new owner, and it is specific about who writes what. The seller completes every section of the title assignment except the buyer's printed name and signature, which the buyer fills in. The FAQ also warns never to leave the buyer's name blank to be filled in later, and never to accept or deliver a title that is incomplete or improperly assigned.

That second warning is the one people ignore. A title signed by the seller with the buyer section left empty is an “open” title: whoever holds it can write in any name. For the seller, the practical risk is that the vehicle stays connected to you on paper while somebody else drives it. Fill it in at the table, with the buyer present.

Two further points from the same page:

• Keep a copy. The Department tells the seller to keep a copy of the front and back of the signed title. A phone photo of both sides, taken before you hand it over, is the simplest way to do that.
• Related buyers. If the buyer and seller are related — the FAQ lists spouse, child, parent, grandchild, grandparent, brother or sister — an Affidavit of Relationship is to be completed. Ask the county tax collector for it if the sale is within the family.

If you cannot find the title at all, a replacement has to be obtained before the sale can go ahead. Our guide to replacing a Mississippi title covers the two forms and their fees.

Step 2: take the plate off before the car leaves

The FAQ says the previous owner must remove the license plate once the title is assigned, and that you cannot transfer your old plate to a new vehicle. So the plate does not stay on the car for the buyer, and it does not go onto your next car either.

Leaving it on is a common favour between private parties (“just so they can drive it home”) and it is the source of a problem the Department addresses directly: toll bills. Its FAQ says that if a plate was not left on the vehicle when it was sold, traded or towed, you can email the toll bill to mvl@dor.ms.gov and the Department will research it and may contact the toll company for you. The simplest protection is never needing that address. A plate that went with the car is a plate whose tolls, tickets and camera violations can arrive at your door.

Step 3: surrender the plate to the county tax collector

The Department's rule is that when either the vehicle or the owner changes, the old tag must be removed and surrendered to your county tax collector's office. The tax collector is the same office that handles your renewal, so if you renew in person you already know where it is. If you renew online, check our county list for the office's site and call ahead about hours; the state's FAQ does not say whether a plate can be surrendered by mail.

Bring the plate itself and a copy of the signed title. The FAQ does not list a required document for a surrender, so ask the counter what they want to see; a copy of the assignment shows the date the vehicle changed hands.

How the registration credit works

This is the part with money in it. According to the Department:

• You can transfer the unused portion of a registration to a new Mississippi vehicle registration.
• No refunds are allowed by Mississippi law. The value can only be applied to another Mississippi registration.
• The credit is calculated from when the tag is turned in, not when the vehicle was sold.
• If you move out of state, you cannot use the credit and no refund is issued.

The third rule explains why the order of steps matters. Suppose you renewed in March and sold the car in July, but the plate stayed in a drawer until October. The credit is measured from October. The months between the sale and the surrender are simply lost to you, even though you no longer owned the car.

The Department's page does not publish the formula for the credit or say which parts of the original bill it covers. A Mississippi renewal is several charges at once — the $12.75 registration fee the Department lists for renewals, privilege tax and county ad valorem tax among them (our bill walkthrough shows the parts). Ask the tax collector how much credit your surrendered tag carries and how it will appear on the next registration, rather than assuming the whole bill carries over.

If you are buying your next car at the same time

Many sellers are also buyers. The Department gives the buyer of a vehicle 30 business days from the purchase date to register it, and if the vehicle was bought outside the buyer's home county, an extra 48 hours to get it home or to the place of business before that 30-business-day period starts. Our post on registration clocks after a purchase goes through that window in detail.

Two consequences for a seller who is also buying:

1. You cannot put your old plate on the new car, so the new vehicle needs its own registration.
2. If you surrender the old plate first, or at the same visit, the credit is available to apply. If you register the new car first and surrender the old plate later, ask whether the credit can still be applied and how; the FAQ does not describe that sequence.

The Department lists $14.00 as the registration fee for first-time registrations, compared with $12.75 for renewals. Taxes are on top and vary by vehicle and county.

Trade-ins and dealer sales

The Department's plate rules are written around a change of vehicle or owner, not around who the buyer is, and its toll-bill guidance names vehicles that were “sold, traded or towed”. So the plate question does not go away because a dealer is involved. Before you leave the lot, confirm whether you are taking the plate with you to surrender, and get the dealer's paperwork showing the trade-in date. The FAQ does not say that a dealer may surrender a plate on your behalf, and we are not going to assume it.

Moving away after the sale

If the sale is part of a move out of Mississippi, the credit is not much use: the FAQ says plainly that if you move out of state you cannot use it, and no refund is issued. You should still surrender the plate, since the rule about removing and turning in the old tag does not depend on whether you are staying. It is also the cleanest way to end your connection with the vehicle before you leave.

A seller's checklist

• Fill in the seller's part of the title assignment; let the buyer write their own printed name and signature, at the table.
• Photograph the front and back of the signed title.
• If the buyer is family, ask the county for the Affidavit of Relationship.
• Take the plate off before the vehicle leaves.
• Surrender the plate to your county tax collector promptly — the credit clock starts when you do.
• Ask how much credit carries to your next Mississippi registration. There is no refund.

This is general information based on published Department of Revenue material, not legal advice. Your county tax collector is the authority on what your office requires today.

Frequently asked questions

Can I keep my Mississippi license plate and put it on my new car?

No. The Department of Revenue's FAQ says you cannot transfer your old license plate to a new vehicle. The plate is surrendered to the county tax collector, and the new vehicle is registered separately.

Do I get a refund on my registration when I sell my car?

No. The Department says refunds are not allowed by Mississippi law. You can transfer the unused portion of the registration to a new Mississippi vehicle registration instead.

When does my registration credit start?

From the date you turn the tag in to the county tax collector, not the date the vehicle was sold. Delaying the surrender reduces the credit.

I am moving out of Mississippi. Can I still get the credit?

No. The Department says that if you move out of state you cannot use the credit, and no refund is issued.

Should the seller leave the buyer's name blank on the title?

No. The Department says the seller completes every part of the assignment except the buyer's printed name and signature, which the buyer fills in, and warns against leaving the buyer's name blank to be completed later.