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Alabama Guide

How to Gift a Car in Alabama

Last verified: November 2026 against Alabama Department of Revenue sources

Alabama’s casual sales tax is on the purchase price of a vehicle, and ALDOR’s sales tax rules say a transfer made as a gift is not a sale.

Here is how to transfer a car as a gift, and what you still pay.

Step by step

  1. 1

    Confirm it is a gift

    ALDOR rule 810-6-1-.150 treats each transfer of property as a sale except a transfer made as a gift. If you pay for the car, even a family member, it is a sale taxed on that price.

    Ask your licensing official what proof of a gift they accept.

  2. 2

    Have the giver sign the title

    The giver assigns the title to you. The assignment does not need to be notarized.

  3. 3

    Insure the car

    Get an Alabama liability insurance policy before you register the car.

  4. 4

    Apply for the title

    Apply through your county licensing official. The fee is $15, plus a $1.50 agent commission and any other commission or local fees the office charges.

  5. 5

    Get a plate within 20 calendar days

    Pay the $23 plate fee, the $1.25 issuance fee and any local fees, and the ad valorem tax.

What to bring

  • The title, signed over to you
  • Proof of Alabama liability insurance
  • Any proof of the gift your licensing official asks for
  • Payment for the $15 title fee and commissions
  • Payment for the plate and ad valorem tax

Estimate your Alabama costs

For a gift, enter $0 as the price to see the title and plate fees. Ad valorem tax is not included.

Open the full Alabama calculator

Vehicle & Transaction Details

Enter purchase information to calculate true out-of-pocket costs in Alabama.

51 Jurisdictions Active
Alabama 2% tax base
$
7 years old
Alabama tag options
1-Year Term (Alabama registers for one year)
EV surcharge rules
Lien fee: $15.00
Alabama: Deductible
$

Alabama Notice: Alabama taxes the price less the credit for a vehicle taken in trade, on private sales too (Ala. Code 40-23-103). Enter a trade-in only if the seller took your vehicle as part of the payment.

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Estimated taxes & fees

Estimated taxes & fees

Jurisdiction

Alabama

Estimated taxes & fees
$338.00 – $1,125.50

Sales/Excise Tax (State + Local Range) + Title Certificate + Tags & Registration

Itemized Line ItemEstimated Fee
1Vehicle Sales / Excise Tax (2% State + Local Range)

State tax $300.00 + Local tax (varies by county) $0.00–$787.50

$300.00 – $1,087.50
2Certificate of Title Fee

Standard state title certificate issuance

$15.00
3Lien / Security Filing Fee

Unfinanced / cash purchase (waived $0.00)

$0.00
4Registration & Tag Fee

Base license plates & tags

$23.00

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Alabama rates last verified: November 2026
Official Notice & Statutory Disclaimers

Estimates only, not tax or legal advice. Verify with your county licensing official or the Alabama Department of Revenue (ALDOR).

The local range comes from ALDOR's November 2026 local rate file. Your county licensing official applies the exact rate for your address.

Ad valorem tax, the $1.25 issuance fee, and local issuance fees are not included. Licensing officials may also add small commissions.

Registration may be prorated to your renewal month, which is set by the first letter of your last name.

Alabama’s sources do not say whether its electric vehicle and plug-in hybrid fees apply to motorcycles, so the estimate leaves them out for a motorcycle. Confirm with the Department of Revenue.

County & Local Tax Note: Alabama charges a 2% state sales tax on a vehicle bought from a private seller, plus the county and city automotive rates where you live. The licensing official collects it when you register. ALDOR's November 2026 local rate file shows combined county and city automotive rates from 0% (Monroe County outside city limits) to 5.25% (Shorter, in Macon County) where the levies can be matched to one place. Some counties split their levies by city limits, police jurisdictions, and unabated portions, and the file does not say which combine, so a few places may be higher.

Frequently Asked Questions

Common questions about this Alabama Department of Revenue process.

Not on a true gift. Alabama taxes the purchase price, and ALDOR’s rules say a gift is not a sale. You still pay the title fee, the plate, and ad valorem tax.

Sources

Last verified: November 2026. Rules change, so check with Alabama Department of Revenue before you go.

More Alabama guides

How to Title a Private Car Sale in AlabamaThe title, 20 days, the 2% tax plus local rates, and the fees.Titling a Car in Alabama After Moving From Another State30 days, no sales tax on a car you already used, and the fees.
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