Alabama Car Title Transfer Fees: The $15 Title Fee, 2% State Tax and the 20-Day Rule

Updated October 24, 2026 · Figures checked against the official sources listed below

The short answer

Title fee: $15 plus the agent's $1.50

One $15 fee covers the title application, the certificate of title after a transfer, a replacement or corrected title, a lien notice and a title history (Ala. Code §32-8-6(a)). There is no separate, higher "transfer" fee and no separate "new title" fee.

The designated agent adds a $1.50 commission (§32-8-6(b)). A License Plate Issuing Official may collect a further $1.50 processing or mailing fee, so the counter total is $16.50 to $18.00 depending on the office (ALDOR FAQ). Manufactured homes are $20 (§32-20-4).

You can't title directly with the Alabama Department of Revenue (ALDOR). Titles go only through designated agents: county License Plate Issuing Officials, licensed Alabama dealers and Alabama financial institutions.

Tax on a private-party purchase: 2% state, plus local

• State rate: 2% casual sales tax on the purchase price (§40-23-101(a)). A car bought out of state pays the matching 2% use tax (§40-23-102(a)).
• Local taxes: your county and city taxes stack on top (§40-23-101(c)). Because they depend on where you live, no single statewide combined rate exists.
• Who collects it: the county licensing official, when you register the car (§40-23-104(a)).
• Basis: the purchase price. Alabama has no standard presumptive-value system. ALDOR can check an implausibly low bill of sale against an affidavit or assessment value, but that's an anti-fraud check, not a book-value tax basis.
• Trade-ins: the credit applies only to dealer retail sales (§40-23-2(4)). A private-party buyer pays 2% state, plus local, on the full price.
• 2% or 4%? Alabama's 4% general sales tax rate does not apply to vehicles.

Deadline: 20 calendar days, then a flat $15

Register the car in your name within 20 calendar days of buying it (§40-12-260(a)(4)). The warning is printed on every bill of sale. Miss it and the penalty is a flat $15 (§40-12-260(a)(5)).

A second $15 under §32-6-65 can apply where there's no plate to transfer. Under Rule 810-5-1-.211 both penalties can stack if you also miss your designated renewal month, plus interest under §40-1-44.

There is no late title-application fee in §32-8. Alabama's timing penalty is tied to the 20-day registration rule, not to the title. For other states' late costs, see car registration late fees by state.

Plates

Plates never transfer between people. The seller removes the plate and keeps it (§40-12-260(a)(1)). Moving your own plate to a replacement vehicle of the same class costs the $1.25 state fee (§40-12-271; ALDOR FAQ). Many counties add local issuance fees, so the counter total varies. For example, Limestone County's official FAQ puts its total at $2.00, but that's one county, not a statewide figure.

The yearly passenger car license tax is $13 under §40-12-242(a). ALDOR's standard plate page lists $23 because it adds the $10 additional fee under §40-12-273. The Alabama calculator uses ALDOR's $23. Motorcycles are $7 under §40-12-242(a).

Ad valorem tax: why there's no single registration total

Alabama also collects a property (ad valorem) tax on the car at registration. Private passenger vehicles are Class IV, assessed at 15% of market value from ALDOR's valuation manual, multiplied by local millage set county by county (§40-8-1(a)). Both inputs vary outside any statewide schedule, so a single statewide registration figure is not available. The calculator has an optional ad valorem estimate if you know your millage.

Gifts, family and inheritance

Alabama's rule is broader than "family only". A true gift with no lien is tax-exempt for anyone, family or friend (ALDOR Sales and Use Tax Division guidance citing an Attorney General Opinion). You write "gift" on the bill of sale. There is no ALDOR gift affidavit form (not available).

If the person receiving the car takes over the donor's loan, tax is collected on the assumed balance. The $15 title fee and $1.50 commission still apply.

Inheritance: if the estate isn't probated, use Form MVT 5-6 (Next of Kin Affidavit) with the death certificate. If it is probated, bring the letters testamentary or of administration (Rule 810-5-75-.09). Title fees are the same, per §32-8-6.

Forms

• MVT 5-1: Application for Certificate of Title. The designated agent completes it electronically (Rule 810-5-75-.12).
• MVT 5-6: Next of Kin Affidavit, for inheritance without probate.
• MVT 5-7: affidavit to correct an assignment.

Other states

Title transfer guides for nearby and other states: Georgia, Tennessee, Florida, South Carolina and Indiana.

What this guide doesn't cover

Dealer sales in detail, your county and city tax rates, local issuance and title fees, ad valorem amounts for a specific county, trucks and manufactured homes beyond the $20 title fee.

Frequently asked questions

See title transfer fees for all 50 states

General information, not tax or legal advice. Fees and tax rules change; confirm with the agency listed before you pay.