Alabama Vehicle Sales Tax Calculator by County

How to Use the Alabama Car Sales Tax Calculator

Using our Alabama auto sales tax calculator is simple and straightforward:

Step 1: Select Your County

Choose the Alabama county where you will register your vehicle from the dropdown menu. Tax rates vary by county, so this is important for accurate calculations.

Step 2: Enter Vehicle Price

Input the purchase price of your vehicle. This should be the amount you paid or will pay for the vehicle before taxes.

Step 3: Add Trade-in Value (Optional)

If you're trading in a vehicle, enter its value. This amount will be deducted from the purchase price before calculating tax, potentially saving you money.

Step 4: Calculate

Click the "Calculate Tax" button to see your results, including the total tax amount and breakdown of calculations.

How Car Sales Tax Works in Alabama

Understanding Alabama's vehicle sales tax system helps you budget for your vehicle purchase:

Tax Structure

Alabama uses a combined state and local tax system for vehicle sales. The state rate is 2%, but local counties and municipalities can add additional taxes, making total rates typically range from 2% to 11%.

What's Taxable

Sales tax on used cars in Alabama is calculated based on the purchase price minus any trade-in value. This means if you trade in a vehicle worth $5,000 on a $25,000 purchase, you only pay tax on $20,000.

Where to Pay

Vehicle sales tax is typically paid at the county courthouse or designated license office when you register your vehicle and obtain your title and license plate.

Frequently Asked Questions

Do I pay tax on a private party sale?

Yes, Alabama used car sales tax also applies to private party purchases. The tax is based on the purchase price or the fair market value, whichever is higher.

Can I reduce my tax with a trade-in?

Yes, the value of your trade-in vehicle is deducted from the purchase price before calculating tax. This can result in significant savings.

What if I bought the vehicle out of state?

If you purchase a vehicle outside Alabama but register it in Alabama, you'll need to pay Alabama sales tax. However, you may receive credit for taxes paid in other states.

Are there any exemptions?

Certain transactions may be exempt, such as gifts between family members, vehicles transferred in divorce settlements, or vehicles purchased by qualifying disabled veterans. Check with your local DMV for specific exemptions.

How accurate is this calculator?

Our calculator uses current tax rates and standard calculation methods. However, tax rates can change, and some special circumstances may affect your actual tax. Always verify with your local courthouse or DMV office.

When do I need to pay the tax?

Vehicle sales tax must be paid within 20 days of purchase or before the vehicle can be registered and titled in Alabama.