Alabama charges sales tax, automotive vehicle rate of 2% at the state level, and local jurisdictions add their own, which brings a typical vehicle to about 4.75%. A trade-in does reduce the taxable price, which is real money on the deal.
Type your own numbers and see the same car priced as cash and as a loan, with the taxes and state fees for Alabama. Nothing you type leaves this page.
To see a lease, pick a vehicle. A lease is priced on one car: what it is expected to be worth at the end (its residual) and the leasing company's money factor change by model and by month.
An estimate on the numbers you type, not an offer of credit or a quote from any dealership. Starting loan rates are Rateous's rates for each credit range and term; they are not an offer from any lender. The documentary fee starts at an example figure, the state's legal cap where it has one or $599 where it does not, not any dealership's fee; each dealership sets its own. Taxes and state fees are estimates for Alabama; the dealership's paperwork and your motor vehicle agency have the final numbers. Nothing you type is sent, saved, or used to check your credit.
Alabama taxes automotive vehicles at a reduced 2% state rate; each city and county has its own automotive rate (ALDOR rate table 'AUTO' rate type), collected where the dealership is located.
Only one city and one county automotive tax may be collected per sale (reciprocity rule 810-6-5-.04.01); if the buyer pays the dealer's city/county tax, the home locality cannot charge again at registration.
In Birmingham, the city's 2.0% and Jefferson County's 0.75% add 2.75% to the state rate; in Mobile, the city's 2.25% and Mobile County's 1.0% add 3.25%. The highest single-locality automotive rates in the ALDOR table reach 5.0%, so the combined local share can exceed 5% in a few places.
Manufacturer rebates applied to the purchase price are taxable in Alabama (ALDOR Automotive Dealer Guide).
Lease/rental tax on automotive vehicles is 1.5% state plus local rental tax, charged on each payment.
On a $35,000 new car with a $37,000 sticker, registered in Birmingham, no trade-in: the same figures the calculator above uses. The dealership's documentary fee is its own and is not included.
| Fee | Amount |
|---|---|
| Title fee | $15.00 |
| Registration (est., flat based) | $24.25 |
| Designated agent title fee (title application through county/agent (up to $1.50)) | $1.50 |
| In all | $40.75 |
Alabama taxes a lease one payment at a time: the tax is added to each monthly payment, so you pay it as you go.
Pick your city for the exact combined rate where you register, plus what title and registration run there.
Alabama charges 2% at the state level and local jurisdictions add more, so a typical combined rate on a vehicle is about 4.75% and can reach 7% at the high end. The rate is set by the dealership location, so pick your city above for the exact figure.
State and local automotive tax is levied on the net difference after a used automotive vehicle is taken in trade (Rule 810-6-1-.22). Trade-in of a leased/rental vehicle does not qualify.
On a $35,000 new car with a $37,000 sticker, registered in Birmingham: Title fee $15.00, Registration (est., flat based) $24.25, Designated agent title fee (title application through county/agent (up to $1.50)) $1.50, about $40.75 in all. Standard passenger plate $23 plus $1.25 issuance fee; county licensing officials add local issuance fees, and annual ad valorem tax on the vehicle is collected at the same time.
No. Alabama sets no statutory cap. Each dealership sets its own documentary fee (not a government fee), and each car shows its dealership's fee.
Alabama taxes a lease one payment at a time: the tax is added to each monthly payment, so you pay it as you go.