Free Alabama Car Sales Tax Calculator
Work out the Alabama car sales tax on a new or used car. Alabama charges state automotive sales tax (2%) plus city and county tax, about 7.46% on average with local taxes. Your trade-in lowers the taxable price.
Alabama car sales tax rules
- Tax type: State automotive sales tax (2%) plus city and county tax
- Rate used in the calculator: 7.46% (state 2% plus the average local rate; up to 10% in some areas)
- Local taxes: City and county sales taxes apply on top of the 2% state rate. Many localities charge a lower rate on vehicles than on other goods, so check your local automotive rate.
- Trade-in credit: Yes. Tax is charged on the difference between the price and your trade-in.
- Manufacturer rebates: Taxed: tax is figured on the price before the rebate.
- Also note: The 2% state rate on vehicles is half the 4% general rate; parts and accessories bought with the car are taxed at 4%.
Tax on common car prices in Alabama
| Price | Tax | Tax with $5,000 trade-in | Price + tax |
|---|---|---|---|
| $10,000 | $746.00 | $373.00 | $10,746.00 |
| $20,000 | $1,492.00 | $1,119.00 | $21,492.00 |
| $30,000 | $2,238.00 | $1,865.00 | $32,238.00 |
| $40,000 | $2,984.00 | $2,611.00 | $42,984.00 |
| $50,000 | $3,730.00 | $3,357.00 | $53,730.00 |
Other costs when you buy a car
On top of the tax, expect title, registration and plate fees, and a dealer documentation fee. Check whether the car fits your budget with the car affordability calculator, or compare with a lease.
Frequently asked questions
How much is sales tax on a car in Alabama?
Alabama charges state automotive sales tax (2%) plus city and county tax, about 7.46% on average with local taxes. Your trade-in lowers the taxable price.
How much tax will I pay on a $30,000 car in Alabama?
About $2,238.00 at 7.46%, or $1,865.00 with a $5,000 trade-in. Title, registration and plate fees are extra.
Does a trade-in reduce car sales tax in Alabama?
Yes. Tax is charged on the difference between the price and your trade-in.
Do local taxes apply to cars in Alabama?
City and county sales taxes apply on top of the 2% state rate. Many localities charge a lower rate on vehicles than on other goods, so check your local automotive rate.
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