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Alabama Car Sales Tax Calculator

The Alabama car sales tax calculator applies the state's reduced 2% automotive sales tax to the price after your trade-in allowance, plus the county and city tax where you register the vehicle. Enter your numbers to see the estimate.

Calculate Your Alabama Car Sales Tax

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The selling price on your buyer’s order.

What the dealer credits you.

State
AlabamaChange state

Alabama counties and many cities add their own automotive sales tax, so your combined rate depends on where you register the vehicle. Look up your combined rate first: Alabama Sales and Use Tax Rates

Condition

Alabama's automotive sales tax applies to the price the dealer charges, which includes dealer fees.

Advanced options

Enter your own amounts where you know them. They replace our estimates.

Replaces the state estimate.

Replaces the state estimate.

Plates, inspections, add-ons.

Estimate only

Estimated out-the-door price

$0.00

Enter a vehicle price to see your estimate.

Vehicle price
$0.00
Trade-in
—
Taxable amount
$0.00
State sales tax (2%)
$0.00
Local sales tax
$0.00
Title fee
$0.00
Registration fee
$0.00
Dealer / documentation fee
—
Estimated total
$0.00
How this estimate was calculated

    Estimates are for informational purposes only. Actual taxes and fees may vary based on your location, vehicle, transaction and current state rules.

    Estimated Alabama Car Sales Tax

    State rate2%
    Local taxVaries by location
    Trade-inLowers taxable price
    Dealer feeTaxed with the price; limit not confirmed

    Alabama taxes a vehicle purchase at a special reduced automotive rate of 2%, well below the state's general 4% sales tax rate. On a $25,000 purchase with no trade-in, that state portion alone comes to $500.00.

    Counties and many cities add their own automotive sales tax on top, so your combined rate depends on where you register the vehicle. Tax is charged on the net price after your trade-in allowance is subtracted.

    Alabama also charges a separate annual ad valorem (property) tax on vehicles, collected alongside registration each year. That tax follows the vehicle from owner to owner and is not part of the one-time sales tax.

    Alabama Car Title and Registration Fees

    An Alabama title costs $18 ($15 plus a $3 fee for the issuing official). The standard passenger license plate itself is $23, but registration also includes the annual ad valorem tax based on the vehicle's value, so we have not added a single flat registration figure; enter your own amount under Advanced options.

    FeeAmountNotes
    Title feeTitle$18.00$15 for the certificate of title, plus a $3 fee due to the issuing official.
    License plate and ad valorem taxRegistrationVariesThe standard passenger plate is $23, but registration also includes an annual ad valorem tax based on the vehicle's assessed value. Contact your county tax assessor's office, then enter your amount under Advanced options.
    Dealer documentation feeSet by the dealerVariesWe have not confirmed a specific Alabama dollar limit on the dealer documentation fee.

    How Alabama Car Sales Tax Is Calculated

    1. Start with the purchase price.
    2. Subtract your trade-in allowance.
    3. Multiply the result by the state automotive rate of 2%.
    4. Add your county and city automotive tax rate for where you register the vehicle.
    5. Add the $18 title fee and your license plate and ad valorem tax amount to reach your out-the-door price.

    Alabama's annual ad valorem tax on a vehicle is a property tax, not a use tax, and it is assessed and collected on a current basis to coincide with registration each year.

    The annual ad valorem tax is separate from the one-time sales tax and is not included in the total here; the county tax assessor's office can give you that figure based on your vehicle's assessed value. Read how a trade-in affects sales tax to see how Alabama's trade-in rule compares with other states.

    Example Alabama Car Sales Tax Calculation

    This example assumes a 2% combined county and city automotive tax rate on top of the 2% reduced state rate.

    Vehicle price$25,000.00
    Trade-in−$5,000.00
    Taxable amount$20,000.00
    State sales tax (2%)$400.00
    Local tax (2%)$400.00
    Title fee$18.00
    Registration feeNot included
    Estimated total$20,818.00

    This is an illustration, not a quote.

    Frequently Asked Questions About Alabama Car Sales Tax

    What is the car sales tax rate in Alabama?

    Alabama charges a reduced 2% state automotive sales tax on a vehicle purchase, well below the general 4% state rate, plus county and city automotive tax where you register the vehicle.

    Does a trade-in reduce Alabama sales tax?

    Yes. Tax is charged on the net difference between the vehicle's price and the trade-in value.

    What is Alabama's ad valorem tax on a car?

    It is a separate annual property tax on the vehicle, collected with registration each year based on the vehicle's assessed value. It is not part of the one-time sales tax.

    How much is the title fee in Alabama?

    The title fee is $18: $15 for the certificate of title plus a $3 fee for the issuing official.

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