Alabama car sales tax calculator
The automotive sales tax in Alabama is the state’s 2.00% plus a local rate that depends on the place, of the taxable amount.
alison.legislature.state.al.us · checked Oct 3, 2026
By Mr. Voltage · Data checked Oct 3, 2026 · Page changed Oct 30, 2026
Where will you register the car?
Huntsville, Madison County, Alabama
Example quotes. Pick your place and type yours. Example: three quotes on one car in Harris County, Alabama. Pick your own place and type your quotes.
Your deals at a glance
| Deal | Payment | All-in |
|---|---|---|
| $564.91a month | $38,894.46so far | |
| $510.26a month | $41,738.62so far | |
| $553.62a month | $38,217.19so far |
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Your numbers stay in this browser.
$564.91 a month · 60 payments
All-in $38,894.46 so far
$510.26 a month · 72 payments
All-in $41,738.62 so far
$553.62 a month · 60 payments
All-in $38,217.19 so far
Out-the-door $34,290.61 so far
so far: not including a doc fee yet. Enter your dealer’s.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $35,013.41 so far
so far: not including a doc fee yet. Enter your dealer’s.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $34,862.62 so far
so far: not including a doc fee yet. Enter your dealer’s.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
New · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Fuel
Gas car. A battery electric car pays $203 a year more to register, a plug-in hybrid $103; an ordinary hybrid nothing more
Sticker price (MSRP)
An estimate: the research’s test car, the 2026 Tucson SEL FWD, at $31,300 without destination. Type your car’s MSRP from the window sticker
First four letters of the last name
Optional. The state sets your renewal date by them, so they work out the first registration’s months. Without them, a full year shows. They stay on this device.
New · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Fuel
Gas car. A battery electric car pays $203 a year more to register, a plug-in hybrid $103; an ordinary hybrid nothing more
Sticker price (MSRP)
An estimate: the research’s test car, the 2026 Tucson SEL FWD, at $31,300 without destination. Type your car’s MSRP from the window sticker
First four letters of the last name
Optional. The state sets your renewal date by them, so they work out the first registration’s months. Without them, a full year shows. They stay on this device.
New · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Fuel
Gas car. A battery electric car pays $203 a year more to register, a plug-in hybrid $103; an ordinary hybrid nothing more
Sticker price (MSRP)
An estimate: the research’s test car, the 2026 Tucson SEL FWD, at $31,300 without destination. Type your car’s MSRP from the window sticker
First four letters of the last name
Optional. The state sets your renewal date by them, so they work out the first registration’s months. Without them, a full year shows. They stay on this device.
Alabama law sets no figure for this fee.
Alabama calls it a dealer documentary fee.
alison.legislature.state.al.us · checked Oct 3, 2026
Alabama law sets no figure for this fee.
Alabama calls it a dealer documentary fee.
alison.legislature.state.al.us · checked Oct 3, 2026
Alabama law sets no figure for this fee.
Alabama calls it a dealer documentary fee.
alison.legislature.state.al.us · checked Oct 3, 2026
revenue.alabama.gov · checked Oct 3, 2026 · figures pulled Nov 11, 2026
revenue.alabama.gov · checked Oct 3, 2026 · figures pulled Nov 11, 2026
revenue.alabama.gov · checked Oct 3, 2026 · figures pulled Nov 11, 2026
Rounds each of the three taxes (state, county, city) to the nearest cent on its own, half a cent going up. Alabama’s bracket schedule covers only the 4% general rate; for the 2% automotive rate the law says only “the prescribed percentage”. One cent a line at most, and only when a line lands on exactly half a cent.
revenue.alabama.gov · checked Oct 3, 2026 · figures pulled Nov 11, 2026
revenue.alabama.gov · checked Oct 3, 2026 · figures pulled Nov 11, 2026
revenue.alabama.gov · checked Oct 3, 2026 · figures pulled Nov 11, 2026
- No safety or emissions inspection and no inspection fee.
revenue.alabama.gov · checked Oct 3, 2026
- No tire, battery or other fee at the sale beyond title, registration, the plate and ad valorem.
revenue.alabama.gov · checked Oct 3, 2026
- No dollar cap on the trade-in allowance that comes off the tax; it may not exceed the price of the car bought.
revenue.alabama.gov · checked Oct 3, 2026
- No limit on the local sales tax on a car.
revenue.alabama.gov · checked Oct 3, 2026
- No safety or emissions inspection and no inspection fee.
revenue.alabama.gov · checked Oct 3, 2026
- No tire, battery or other fee at the sale beyond title, registration, the plate and ad valorem.
revenue.alabama.gov · checked Oct 3, 2026
- No dollar cap on the trade-in allowance that comes off the tax; it may not exceed the price of the car bought.
revenue.alabama.gov · checked Oct 3, 2026
- No limit on the local sales tax on a car.
revenue.alabama.gov · checked Oct 3, 2026
- No safety or emissions inspection and no inspection fee.
revenue.alabama.gov · checked Oct 3, 2026
- No tire, battery or other fee at the sale beyond title, registration, the plate and ad valorem.
revenue.alabama.gov · checked Oct 3, 2026
- No dollar cap on the trade-in allowance that comes off the tax; it may not exceed the price of the car bought.
revenue.alabama.gov · checked Oct 3, 2026
- No limit on the local sales tax on a car.
revenue.alabama.gov · checked Oct 3, 2026
Your $5,000.00 down covers the $1,590.61 in tax and fees first; $3,409.39 goes toward the price.
Your $5,000.00 down covers the $1,618.41 in tax and fees first; $3,381.59 goes toward the price.
Your $5,000.00 down covers the $1,612.62 in tax and fees first; $3,387.38 goes toward the price.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
60 payments, last $564.77
72 payments, last $510.16
60 payments, last $553.61
cash down plus every payment
cash down plus every payment
cash down plus every payment
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
7 charges this total leaves out
7 charges this total leaves out
7 charges this total leaves out
What’s different in Alabama
Alabama calls it the automotive sales tax.
revenue.alabama.gov · checked Oct 3, 2026
A trade-in comes off the amount taxed at its full value, so only the difference is taxed.
revenue.alabama.gov · checked Oct 3, 2026
Negative equity rolled into the new loan is not taxed. That point is not confirmed.
alison.legislature.state.al.us · checked Oct 3, 2026
Alabama’s law sets no figure for the dealer documentary fee. That point is not confirmed.
alison.legislature.state.al.us · checked Oct 3, 2026
A yearly ad valorem (property) tax is collected with the registration, starting with the first: the car’s market value times 15% times the millage where you live. Here it is an estimate, not a checked figure.
alison.legislature.state.al.us · checked Oct 3, 2026
Worked examples
Each line below is worked by the same engine as the calculator, on the day this page was built (Nov 11, 2026).
A new car with a trade-in and negative equity
A new car at $32,700.00, with a trade-in allowed at $10,000.00 and $13,000.00 still owed, $5,000.00 down, financed at 5.90% for 60 months, bought from a dealer and registered in Alabama’s example market.
| Line | Amount |
|---|---|
| Price | $32,700.00 |
| Trade-in allowance | $10,000.00 |
| Still owed on the trade-in | $13,000.00 |
| Equity (negative if you owe more than it is worth) | −$3,000.00 |
| Selling price alison.legislature.state.al.us · checked Oct 3, 2026 | $22,700.00 |
| Alabama state automotive sales tax (2%) alison.legislature.state.al.us · checked Oct 3, 2026 | $454.00 |
| County sales tax (where the dealer is) revenue.alabama.gov · checked Oct 3, 2026 | $56.75 |
| City sales tax (where the dealer is) revenue.alabama.gov · checked Oct 3, 2026 | $397.25 |
| Certificate of title ($15 plus the dealer’s $1.50 agent fee) alison.legislature.state.al.us · checked Oct 3, 2026 | $16.50 |
| Registration (private passenger car), for a full year revenue.alabama.gov · checked Oct 3, 2026 | $23.00 |
| License plate issuance fee alison.legislature.state.al.us · checked Oct 3, 2026 | $1.25 |
| Ad valorem (property) tax, first year, an estimate, for a full year alison.legislature.state.al.us · checked Oct 3, 2026 | $241.86 |
| Out-the-door price | $33,890.61 |
| Cash down | $5,000.00 |
| Amount financed | $31,890.61 |
| Monthly payment | $615.05 |
| Interest over the loan | $5,012.64 |
| Total paid, interest included | $41,903.25 |
A used car from a dealer
A used car, model year 2022, at $21,500.00, $5,000.00 down, financed at 5.90% for 60 months, bought from a dealer and registered in Alabama’s example market.
| Line | Amount |
|---|---|
| Price | $21,500.00 |
| Selling price alison.legislature.state.al.us · checked Oct 3, 2026 | $21,500.00 |
| Alabama state automotive sales tax (2%) alison.legislature.state.al.us · checked Oct 3, 2026 | $430.00 |
| County sales tax (where the dealer is) revenue.alabama.gov · checked Oct 3, 2026 | $53.75 |
| City sales tax (where the dealer is) revenue.alabama.gov · checked Oct 3, 2026 | $376.25 |
| Certificate of title ($15 plus the dealer’s $1.50 agent fee) alison.legislature.state.al.us · checked Oct 3, 2026 | $16.50 |
| Registration (private passenger car), for a full year revenue.alabama.gov · checked Oct 3, 2026 | $23.00 |
| License plate issuance fee alison.legislature.state.al.us · checked Oct 3, 2026 | $1.25 |
| Ad valorem (property) tax, first year, an estimate: needs the car’s book value, which this example doesn’t give | Not included |
| Out-the-door price | $22,400.75 |
| Cash down | $5,000.00 |
| Amount financed | $17,400.75 |
| Monthly payment | $335.60 |
| Interest over the loan | $2,735.05 |
| Total paid, interest included | $25,135.80 |
The rules in Alabama
| Rule | What it says |
|---|---|
| Name of the tax | automotive sales tax revenue.alabama.gov · checked Oct 3, 2026 |
| Alabama state automotive sales tax (2%) | 2.00% of the taxable amount alison.legislature.state.al.us · checked Oct 3, 2026 |
| County sales tax (where the dealer is) | a local rate set by the dealer’s place, on the taxable amount revenue.alabama.gov · checked Oct 3, 2026 |
| City sales tax (where the dealer is) | a local rate set by the dealer’s place, on the taxable amount revenue.alabama.gov · checked Oct 3, 2026 |
| What is taxed | Taxed: the vehicle price, the doc fee, other dealer fees on the order, accessories fitted before delivery, protection packages and loose items sold with the car. Not taxed: service contracts, prepaid maintenance, GAP and government fees. alison.legislature.state.al.us · checked Oct 3, 2026 |
| Trade-in | A trade-in comes off the amount taxed at its full value, so only the difference is taxed. revenue.alabama.gov · checked Oct 3, 2026 |
| Maker’s rebate | A maker’s rebate does not lower the amount taxed. revenue.alabama.gov · checked Oct 3, 2026 |
| Dealer discount | A dealer discount does not lower the amount taxed. revenue.alabama.gov · checked Oct 3, 2026 |
| Negative equity | Negative equity rolled into the loan is not taxed. That point is not confirmed. alison.legislature.state.al.us · checked Oct 3, 2026 |
| Doc fee | The law sets no figure for the dealer documentary fee. That point is not confirmed. alison.legislature.state.al.us · checked Oct 3, 2026 |
| Certificate of title ($15 plus the dealer’s $1.50 agent fee) | $16.50. That point is not confirmed. alison.legislature.state.al.us · checked Oct 3, 2026 |
| Registration (private passenger car) | $23.00 a year revenue.alabama.gov · checked Oct 3, 2026 |
| Ad valorem tax (an estimate) | Market value × 15% × the millage where you live (Huntsville 58 mills), collected with every registration and prorated by the month the first year. An estimate here, not a checked figure. alison.legislature.state.al.us · checked Oct 3, 2026 |
| Private-party purchase | The 2% state tax plus your city and county automotive rates on the purchase price, paid to the county licensing official at registration. No trade-in credit. alison.legislature.state.al.us · checked Oct 3, 2026 |
| Tax paid to another state | Credit for sales or use tax paid to another state, up to the Alabama tax; you pay the difference. None if that state gives Alabama no credit. alison.legislature.state.al.us · checked Oct 3, 2026 |
| New resident | No sales or use tax on a car substantially used in another state. Title, registration and ad valorem are due. revenue.alabama.gov · checked Oct 3, 2026 |
| Electric and plug-in hybrid fees | A battery electric car pays $203 a year and a plug-in hybrid $103, in addition to the $23 registration; ordinary hybrids pay nothing extra. Both rise $3 every fourth year; the next step, to $206 and $106 on July 1, 2027, is our reading of the statute. alison.legislature.state.al.us · checked Oct 3, 2026 |
| Finance rate ceiling | No rate cap when $2,000 or more is financed: the parties may agree on any rate. Lower caps apply under $2,000. alison.legislature.state.al.us · checked Oct 3, 2026 |
What has changed
· Fees: a new version takes effect.
alison.legislature.state.al.us · checked Oct 3, 2026
· Watching: The electric and plug-in hybrid fees rise $3 every fourth year from July 1, 2023; they fall to $150 and $75 once electric and plug-in cars pass 4% of registrations, $206 and $106 from July 1, 2027.
alison.legislature.state.al.us · checked Oct 3, 2026
· Watching: ALDOR revalues cars each October 1 for the next calendar year’s ad valorem, and localities change their sales tax rates with 60 days’ notice in the monthly rate file, The January 2027 values and the monthly file should keep Huntsville at 4.00% in all.
alison.legislature.state.al.us · checked Oct 3, 2026
· The rules on this page start here. Nothing earlier is loaded.
Questions people ask
How does Alabama tax a car, and which local rate applies?
Alabama charges a lower automotive rate of its sales tax: the state’s 2%, where the general rate is 4%, plus the automotive rates of the city and county where the dealer is. The dealer collects it at signing. Only one city tax and one county tax may be collected on a sale, whatever their rates. A Montgomery resident who buys in Prattville pays Prattville and Autauga County tax and owes no Montgomery tax at registration. In Huntsville (the Madison County part) it is 4.00% in all: 2% state, 0.25% county and 1.75% city. The same rules apply to a new or a used car. The doc fee and accessories added before the sale are taxed; a service contract and GAP are not.
alison.legislature.state.al.us · checked Oct 3, 2026
revenue.alabama.gov · checked Oct 3, 2026
madisoncountyal.gov · checked Oct 3, 2026
huntsvilleal.gov · checked Oct 3, 2026
madisoncountyal.gov · checked Oct 3, 2026
What is the Alabama ad valorem tax on a car?
It is a yearly property tax on the car, collected by the county with the registration, starting when you first register it. It is the car’s market value times 15%, the assessment rate for private passenger cars and SUVs, times the millage where you live. Huntsville’s millage is 58 mills (0.0580); other Madison County places have their own. Madison County’s own example: $20,000 × 15% = 3,000, × 0.058 = $174.00 for 12 months. Here it is an estimate, not a checked figure. The Department of Revenue sets market value at 89% of average retail value, and a new model with no retail value at its MSRP times an adjustment factor times 89%, rounded down to $100. No public lookup of those values was found, so for a new car we estimate from 89% of the MSRP, and for a used car from 89% of a book value you type. The first year is prorated by the month. We count it through the month before your renewal month; whether the county counts it that way is not confirmed. If you sold or traded your old car, you can claim a credit voucher for its unused ad valorem within 60 days and use it on the new car, with a $2 fee when it is redeemed.
alison.legislature.state.al.us · checked Oct 3, 2026
alison.legislature.state.al.us · checked Oct 3, 2026
madisoncountyal.gov · checked Oct 3, 2026
revenue.alabama.gov · checked Oct 3, 2026
revenue.alabama.gov · checked Oct 3, 2026
When is an Alabama tag due, and how does the last name set the months?
You get the plate within 20 calendar days of buying the car, and the tax, ad valorem and fees are paid then. Registering a newly bought car late costs a $15 penalty plus interest. Your renewal month is set by the first letter of your last name: A and D January, B February, C and E March, F, G and N April, H and O May, M and I June, P and L July, J, K and R August, Q, S and T September, U to Z October. The first registration is prorated by the month to the end of your license year. A last name starting with S renews in September, so a car bought in October is registered for 12 months, through the next September. If you buy in your own renewal month, you may pay for 13 months, or for 1 month and renew before the month ends.
revenue.alabama.gov · checked Oct 3, 2026
alison.legislature.state.al.us · checked Oct 3, 2026
revenue.alabama.gov · checked Oct 3, 2026
Is there a limit on the Alabama dealer doc fee?
We found no dollar limit in Alabama law. A full-text search of the Code of Alabama found no statute that sets, caps or requires disclosure of a dealer documentary fee, and the Department of Revenue’s guide treats doc fees only as taxable. That is a finding of absence, so it is not confirmed. The general Deceptive Trade Practices Act still applies. Dealer fees, whatever they are called (clerical, doc, dealer prep or processing fees), are taxed at the automotive rate. Every dealer is a designated title agent and keeps the $1.50 commission the law sets for each title it files. Any other title or tag charge from the dealer is a dealer fee. Complaints go to the Alabama Attorney General’s consumer complaint office, through its online form.
alison.legislature.state.al.us · checked Oct 3, 2026
revenue.alabama.gov · checked Oct 3, 2026
alison.legislature.state.al.us · checked Oct 3, 2026
alabamaag.gov · checked Oct 14, 2026
Do a trade-in and rebates lower Alabama sales tax?
A trade-in does: the tax is on the net difference, new or used, when the dealer selling you the car takes the trade. The allowance can’t be more than the price of the car you buy, and a trade-in sold separately does not count. Rebates do not. A manufacturer’s rebate of any type is taxed when it is applied to the price, including one used as a down payment, and a dealer rebate is treated the same. A rebate you take as cash and don’t apply to the car is not taxed. A real dealer price cut or cash discount is simply a lower price, so it lowers the tax.
revenue.alabama.gov · checked Oct 3, 2026
revenue.alabama.gov · checked Oct 3, 2026
I bought a car out of state or from a private seller. What do I pay in Alabama?
From a private seller, you pay the 2% state tax plus your own city and county automotive rates on the purchase price, to the county licensing official when you register. There is no trade-in credit. From an out-of-state dealer, you pay the 2% state use tax plus your home city and county use tax at registration, less credit for sales or use tax paid to the other state, up to the Alabama tax. No credit is given if that state gives Alabama none. A new resident owes no sales or use tax on a car already registered, tagged or titled in another state, but pays title, registration and ad valorem, and registers within 30 days.
alison.legislature.state.al.us · checked Oct 3, 2026
alison.legislature.state.al.us · checked Oct 3, 2026
alison.legislature.state.al.us · checked Oct 3, 2026
revenue.alabama.gov · checked Oct 3, 2026