Alabama Car Sales Tax Calculator

What you pay in tax when you buy a vehicle in Alabama, from the statute and the revenue department.

Verified September 21, 2026 · statute and revenue department cross-checked

Vehicle price (USD) Trade-in value (USD) Local automotive rate (county + city)

Buying the car is only half the cost. You still owe an annual registration fee.

What to know about Alabama

Alabama has the lowest state vehicle rate in the country at 2 percent, but local automotive rates stack on top and are collected at registration. Federal EV rebates count as part of the taxable proceeds. Look up your exact local automotive rate on the Department of Revenue address tool, since the automotive rate is usually lower than the county’s general rate.

Sources

Statute: Code of Ala. § 40-23-2(4)

Alabama Department of Revenue, Sales Tax
“2% of net trade difference of new or used automotive vehicles ... counties and municipalities may levy local sales taxes ranging in rate between .10% to 5%.”

Alabama Department of Revenue, Casual Sales Tax
“A 2 percent state sales tax rate and additionally any local rates due for individual counties and cities.”

Last verified: September 21, 2026.

Estimates only. Your dealer or the state issues the final bill, and exemptions can change what you owe. This page does not collect or store anything you enter.