Alabama Car Sales Tax Calculator (2026)

• Alabama's state automotive sales tax rate is 2%, and county and city automotive taxes can apply on top.

Automotive sales tax

2%

Local tax

0% to 5.5%

Trade-in

Full credit: reduces the taxable price

Manufacturer rebate

Taxed: tax is figured before the rebate

Figured with Alabama's rules for a buyer in Huntsville, at its 2% local rate.

• Used car, no trade-in$720

  $18,000 price. Taxed on $18,000.

• New car with a trade-in$1,000

  $35,000 price, $10,000 trade-in. Taxed on $25,000. The trade-in saves $400.

• New car with a trade-in and a rebate$1,200

  $45,000 price, $15,000 trade-in, $2,000 rebate. Taxed on $30,000. The trade-in saves $600. The rebate does not lower the tax.

These examples treat the agreed price as the taxable price. Where a state uses a book value instead, the tax can differ.

On a $30,000 car, tax runs from $1,005 in Auburn to $1,425 in Birmingham, a difference of $420 among the 7 cities we list.

Before trade-in, for a buyer living in each city. In some states the rate follows the dealer's location instead; see the rules above and our methodology. Rates from revenue.alabama.gov, checked Nov 6, 2026.

The calculator covers a car bought from a dealer. These rules apply to other ways of buying or bringing a car to Alabama.

Buying from a private seller

A car bought from a seller who is not a licensed dealer is subject to the casual sales tax at the same rates as the automotive sales tax: 2% state plus any county and city rates. The buyer pays it to the county licensing official when registering the car in the county of residence. (revenue.alabama.gov, checked Nov 10, 2026)

Moving to Alabama with your car

No Alabama sales or use tax is due when a new resident first registers a used car that was substantially used in another state, which can be shown by its registration, tag or title in that state. A new resident has 30 days from the date the car enters Alabama to register it. (revenue.alabama.gov, checked Nov 10, 2026)

Buying outside Alabama

An Alabama resident who buys a car out of state pays state and local use tax when registering it, with credit for sales tax legally imposed by the other state. The credit goes first against the state tax, then local tax, and cannot exceed the Alabama tax due. (revenue.alabama.gov, checked Nov 10, 2026)

Active-duty military

Military members owe Alabama sales and use tax when buying a car in Alabama for use in Alabama. Service members stationed in Alabama whose cars are titled and registered in their home state may keep that registration, or may choose to title and register in Alabama. (revenue.alabama.gov, checked Nov 10, 2026)

Deadline to pay

Anyone acquiring a new or used car must obtain a license plate within 20 calendar days of acquisition, and a title application must be completed before the registration is processed. Tax on a purchase from a private or out-of-state seller is paid to the county licensing official at registration. (revenue.alabama.gov, checked Nov 10, 2026)

Paying late

Registering a newly acquired car late adds a $15 penalty plus interest. The same penalty applies to a new resident who does not register within 30 days of entering Alabama. (revenue.alabama.gov, checked Nov 10, 2026)

Alabama ranks 6th lowest of all 50 states and the District of Columbia for tax on a $30,000 car, at its lowest local rate. See all states.

Tax on a $30,000 car before trade-in, in nearby states. You generally pay tax based on where you register the car.

• Alabama$600 – $2,250
• Mississippi$1,500
• Florida$1,800 – $1,900
• Georgia$2,100
• Tennessee$2,176 – $2,188

• All car calculators
• Sales tax calculators by state
• Car sales tax by state
• Trade-in tax credit by state
• Car cost by state
• Alabama out-the-door price
• Auto loan calculator

• Florida car sales tax
• Georgia car sales tax
• Mississippi car sales tax
• Tennessee car sales tax