Real Alabama deals, worked out
Each example runs through the same calculator above, line by line, so you can check every number yourself.
1Birmingham area: new SUV with a trade-in
A buyer pays $38,000 for a new SUV and trades in a car worth $12,000. The 2% state rate and the local rate both apply only to the $26,000 difference.
| Vehicle price | $38,000.00 |
| Automotive sales tax (2% state + 2% local) on $26,000.00 | $1,040.00 |
| Title application fee | $15.00 |
| Title issuance fee | $3.00 |
| Registration (base) | $23.00 |
| Out-the-door | $39,081.00 |
| Due after the $12,000 trade-in | $27,081.00 |
2Used car from a private seller
A buyer pays a private seller $14,000. There's no trade-in, so the full price is taxed when the car is registered at the county office.
| Price paid | $14,000.00 |
| Automotive sales tax (2% state + 2% local) on $14,000.00 | $560.00 |
| Title application fee | $15.00 |
| Title issuance fee | $3.00 |
| Registration (base) | $23.00 |
| Out-the-door | $14,601.00 |
3New electric car
A buyer pays $45,000 for a new electric car. On top of the sales tax and title fees, the $203 Rebuild Alabama fee comes due with every yearly registration.
| Vehicle price | $45,000.00 |
| Automotive sales tax (2% state + 2% local) on $45,000.00 | $1,800.00 |
| Title application fee | $15.00 |
| Title issuance fee | $3.00 |
| Registration (base) | $23.00 |
| Rebuild Alabama fee (electric vehicle) | $203.00 |
| Out-the-door | $47,044.00 |
How Alabama taxes a car
Vehicles get their own automotive rate in Alabama. The state part is 2% of the net price, meaning the price after a trade-in, and your county and city each add an automotive rate of their own. Because those local rates differ across the state, the calculator starts with a typical 2% local rate; enter your own rate for an exact number.
Dealers collect the tax on the sale. If you buy from a private seller, you pay it at your county licensing office when you register the car.
Alabama car tax at common prices
What a new gas car bought from a dealer comes to at four prices, using a 2% local rate. The trade-in column shows how much a $10,000 trade-in changes the tax under Alabama's rules.
| Price | Tax | Tax with $10,000 trade-in | Taxes + fees |
|---|---|---|---|
| $15,000 | $600.00 | $200.00 | $641.00 |
| $25,000 | $1,000.00 | $600.00 | $1,041.00 |
| $35,000 | $1,400.00 | $1,000.00 | $1,441.00 |
| $50,000 | $2,000.00 | $1,600.00 | $2,041.00 |
Title, registration and EV fees
The state title application fee is $15, and the licensing official charges a $3 issuance fee on top. Registration starts at a base fee that counties add to, and your county bills yearly ad valorem (property) tax at the same time, so the tag office total is usually higher than the state fees alone.
Under the Rebuild Alabama Act, battery electric cars pay an extra $203 a year and plug-in hybrids pay $103, amounts in effect since July 1, 2023. Regular hybrids that don't plug in don't pay it.
Alabama taxes and fees at a glance
Officialfrom a state agency sourceEst.varies or not yet confirmed
| Item (birmingham area: new suv with a trade-in) | Status | Amount |
|---|---|---|
| Automotive sales tax (2% state + 2% local) | Estimate | $1,040.00 |
| Title application fee | Official | $15.00 |
| Title issuance fee | Official | $3.00 |
| Registration (base) | Estimate | $23.00 |
| Total taxes and fees | $1,081.00 |
Alabama car tax FAQ
What is the sales tax on a car in Alabama?
The state automotive rate is 2%, plus county and city automotive rates where you live.
Does Alabama tax the price after a trade-in?
Yes. The automotive sales tax is on the net price after your trade-in allowance.
How much is the Alabama title fee?
$15 for the title application, plus a $3 issuance fee paid to the licensing official.
Is there an EV fee in Alabama?
Yes. Battery electric cars pay $203 a year and plug-in hybrids $103, on top of regular registration.
Sources
We build every number from these agency pages. If something has changed, tell us and we'll fix it.