Alabama Vehicle Tax Overview
Alabama's vehicle sales tax system combines state, county, and city rates. The state also has specific requirements for registration, title transfers, and annual property taxes on vehicles.
Sales Tax Structure
- State Rate: 2%
- County Rates: 1-2%
- City Rates: 1-3%
- Casual Sales: Same rates apply
Major City Total Rates
- Birmingham: 6% (2% state + 2% county + 2% city)
- Montgomery: 5.5%
- Mobile: 5.5%
- Huntsville: 5.5%
- Tuscaloosa: 5%
Registration Fees (2024)
- Standard Registration: $23
- Title Fee: $15
- License Plate Fee: $3
- Processing Fee: $2
- Issuance Fee: Varies by county
Property Tax
- Annual Assessment: Based on vehicle value
- Rate: Varies by county (1.5-3%)
- Due Date: Registration renewal month
- Calculation: Market value × assessment ratio × millage rate
Tax Exemptions
- Disabled veterans (100% rating)
- Military personnel (specific conditions)
- Government vehicles
- Certain nonprofit organizations
- Interstate commerce vehicles
Registration Requirements
- New Residents: 30 days to register
- Insurance: Mandatory liability coverage
- Documentation:
- Valid Alabama driver's license
- Proof of insurance
- Vehicle title
- Bill of sale
- Property tax receipt
Special Vehicle Categories
- Antique Vehicles:
- One-time registration
- Reduced fees
- Special plates available
- Commercial Vehicles:
- Weight-based fees
- IRP registration available
- Special permits required
Regional Considerations
- Metropolitan Areas:
- Higher combined tax rates
- Additional local fees
- Rural Counties:
- Lower combined rates
- Different property tax assessments
Money-Saving Tips
- Compare county tax rates
- Check for veteran benefits
- Consider timing of purchase
- Research antique vehicle options
- Keep property tax receipts
Common Questions
- Q: How is property tax calculated?
A: Based on vehicle value and local millage rates
- Q: Do I need an emissions test?
A: No, Alabama doesn't require emissions testing
- Q: Can I transfer my tag?
A: Yes, with proper documentation and fees