ALABAMA CAR SALES TAX · 2026
Alabama car sales tax calculator
Alabama charges 2% automotive sales tax on a car's price less any trade-in, plus local tax. On a $35,000 car with a $10,000 trade-in, bought from a dealer, the tax is $500.00, before local tax.
Tax on this purchase
- Tax due
- $500.00
- Automotive sales tax
- $500.00
- Local tax
- $0.00
- Taxed amount
- $25,000.00
- Trade-in subtracted
- $10,000.00
Alabama car sales tax by price
A new car from a dealer, before local tax.
| Price | No trade-in | $10,000 trade-in |
|---|---|---|
| $20,000 | $400.00 | $200.00 |
| $35,000 | $700.00 | $500.00 |
| $50,000 | $1,000.00 | $800.00 |
| $75,000 | $1,500.00 | $1,300.00 |
Alabama car sales tax questions
How much is car sales tax in Alabama?
Alabama charges 2% automotive sales tax on a car's price less any trade-in, plus local tax. On a $35,000 car with a $10,000 trade-in, bought from a dealer, the tax is $500.00, before local tax.
Does a trade-in lower Alabama's car sales tax?
Yes. Alabama taxes the price less the trade-in. A $10,000 trade-in on a $35,000 car from a dealer saves $200.00.
Is a manufacturer rebate taxed in Alabama?
Yes. Alabama taxes the price before a manufacturer rebate, so a $2,000 rebate does not lower the tax.
Is a private car sale taxed in Alabama?
Yes. Alabama taxes a private sale at the same rate.
What the calculator leaves out
- This site has not confirmed whether Alabama subtracts a trade-in on a private sale, so the calculator does not.
- Local tax is included only when you enter it.
Title, registration and plate fees, dealer fees, and any yearly tax on owning the vehicle are not included.