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What a vehicle purchase costs in Alabama, itemized and sourced.

Sales tax, title and registration for a vehicle registered in Alabama. Every line cites the page it came from and the day we opened it.

On a $30,000.00 gas vehicle with no trade-in, the Alabama estimate is $642.25 in taxes and fees (alabama sales tax (2%) $600.00, title $15.00, licensing official fee on a title $3.00, registration (passenger plate) $23.00, plate issuance fee $1.25).

Your purchase

Alabama
Price
Where you live
Most cities and counties add their own tax, and only one city or county tax applies. Dealers collect it for the place where the dealership is located. Ask the dealer or your county for the rate and type it here.
Vehicle
Fuel

Estimate only. Not tax or legal advice. Confirm with your Alabama state agency before you pay.

Estimate / Alabama

Reviewed Oct 24, 2026

  • Alabama sales tax (2%)[1] source$600.00
  • Title[2] source$15.00
  • Licensing official fee on a title[2] sourceCheck sourceStated in an FAQ about titling imported vehicles as an extra charge due to the licensing official.$3.00
  • Registration (passenger plate)[2] source[3] sourceCheck sourceThe registration page lists $23 to $105 for passenger cars and pickup trucks without saying what sets the amount. $23 is the standard passenger plate cost.$23.00
  • Plate issuance fee[2] source[4] sourceCheck sourceStated as an issuance fee on the standard passenger plate; the transfer FAQ gives the same $1.25 state amount.$1.25
Total taxes and fees$642.25

Price plus these items: $30,642.25.

Estimate for a $30,000 vehicle.See all sources

Sources

4 official pages, all opened Oct 24, 2026

  1. [1]
    Automotive Sales, Use and Lease Tax Guide (Feb 2025)Supports: State sales tax rate, Trade-in rule, Local tax, Tax paid to another state
    Alabama DOROpen page
  2. [2]
    General registration FAQSupports: Title, Licensing official fee on a title, Registration (passenger plate), Plate issuance fee
    Alabama DOROpen page
  3. [3]
    Motor vehicle registration feesSupports: Registration (passenger plate), Electric vehicle registration fee
    Alabama DOROpen page
  4. [4]
    Fee to transfer a license plate (FAQ)Supports: Plate issuance fee
    Alabama DOROpen page

What changed

1 change to Alabama's numbers or rules

  1. Oct 24, 2026Added state with the 2% state sales tax, title, registration and the electric vehicle fee. Local city and county tax is entered by you because the state guide lists no rates.

How Alabama works out this bill

Alabama charges 2% state sales tax on a vehicle, and most cities and counties add their own tax on top. Title and registration fees are small by comparison.

The state rate is 2%. A trade-in comes off the price before tax, so only the net difference is taxed.

Source: Alabama DOR - Automotive Sales, Use and Lease Tax Guide (Feb 2025)

Cities and counties add their own tax. Only one city or county tax applies, and the dealer collects it for the place where the dealership is located.

Source: Alabama DOR - Automotive Sales, Use and Lease Tax Guide (Feb 2025)

A manufacturer rebate that you apply to the purchase price is still taxable. A rebate you take as cash is not.

Source: Alabama DOR - Automotive Sales, Use and Lease Tax Guide (Feb 2025)

If you bought in another state and bring the vehicle to Alabama, you get credit for tax you legally owed to that state.

Source: Alabama DOR - Automotive Sales, Use and Lease Tax Guide (Feb 2025)

All figures this calculator uses (8)

Common questions

Does a trade-in lower the sales tax in Alabama?

Yes. Tax is figured on the difference between the price and the trade-in credit. If the trade-in is worth more than the price, the extra cannot be deducted elsewhere.

Source: Alabama DOR - Automotive Sales, Use and Lease Tax Guide (Feb 2025)

Are rebates taxed in Alabama?

Manufacturer and dealer rebates are taxable when applied to the purchase price. Federal electric vehicle credits are also subject to sales and use tax.

Source: Alabama DOR - Automotive Sales, Use and Lease Tax Guide (Feb 2025)

Why do I have to enter my own local tax rate?

Local rates vary by city and county and are not listed in the state's vehicle tax guide, so the calculator asks for the rate your dealer charges.

Source: Alabama DOR - Automotive Sales, Use and Lease Tax Guide (Feb 2025)

How often is this page updated?

The data on this page was last reviewed on Oct 24, 2026. Pages get a changed-page check each month and a full re-verification each January and July.

How we check numbers

Worked examples

Gas vehicle, no trade-in

$20,000 vehicle

$442.25

Alabama sales tax (2%) $400.00, Title $15.00, Licensing official fee on a title $3.00, Registration (passenger plate) $23.00, Plate issuance fee $1.25.

Gas vehicle with a trade-in

$30,000 vehicle, $8,000 trade-in

$482.25

Tax is charged on $22,000, so the trade-in saves $160.00 in sales tax.

Electric vehicle

$45,000 vehicle

$1,145.25

Alabama sales tax (2%) $900.00, Title $15.00, Licensing official fee on a title $3.00, Registration (passenger plate) $23.00, Plate issuance fee $1.25, Electric vehicle registration fee $203.00.

Each example runs the same calculation as the calculator above. Local tax and county fees are left out unless the example says otherwise, because they depend on where you live. Estimates only.

What this calculator does not cover

  • Local sales tax depends on where the dealership is. Type your rate in the local tax box.
  • Some counties add local fees to registration that are not included.
  • Manufacturer rebates applied to the price are taxable. Enter the price before the rebate comes off.