Alabama transfer tax
Alabama charges a deed tax of $0.50 per $500 of value (about 0.1%) when a deed is recorded at the county probate office. When a mortgage is recorded at the same time, the deed tax applies only to the value above the mortgage amount, and the mortgage pays its own $0.15 per $100 tax instead. Who pays is set by the contract; the buyer commonly pays recording taxes.
No separate county or city transfer taxes; the state deed tax is collected by the county judge of probate (one-third goes to the county). Recording fees vary by county.
Highest totals in Alabama on a $400,000 sale
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Total includes the state tax. Click a column to sort.
Alabama state transfer tax calculator
- State
| Tax | Rate | Who pays | Amount |
|---|---|---|---|
| Alabama deed taxState | $0.50 per $500 | Negotiable | $400.00 |
| Total transfer tax (0.1% of the price) | $400.00 | ||
"Who pays" is the customary or legal default; your purchase contract can move it.
Transfer tax in Alabama by home price
| Sale price | Total tax | Effective rate | Seller | Buyer |
|---|---|---|---|---|
| $250,000 | $250 | 0.1% | $125 | $125 |
| $400,000 | $400 | 0.1% | $200 | $200 |
| $600,000 | $600 | 0.1% | $300 | $300 |
| $800,000 | $800 | 0.1% | $400 | $400 |
| $1,000,000 | $1,000 | 0.1% | $500 | $500 |
| $1,500,000 | $1,500 | 0.1% | $750 | $750 |
| $2,500,000 | $2,500 | 0.1% | $1,250 | $1,250 |
| $5,000,000 | $5,000 | 0.1% | $2,500 | $2,500 |
Negotiable amounts are shown half to each side.
Selling in Alabama?
Transfer tax is usually the second-biggest closing cost after the agent's commission. Comparing agents' fees often saves more than any exemption.
Common exemptions
- Value of $500 or less pays a flat $0.50
- Value covered by a simultaneously recorded mortgage (mortgage tax paid instead)
- Deeds to or from government bodies
- Corrective deeds
Questions
How much is the Alabama deed tax?
$0.50 for each $500 of value or fraction thereof — about $1 per $1,000 (0.1%).
Does a mortgage reduce the deed tax?
Yes. If a mortgage is recorded with the deed, deed tax is due only on value above the mortgage amount; the mortgage pays $0.15 per $100 of debt.
Who pays deed tax in Alabama?
State law does not assign it; it is negotiated in the purchase contract.
How much is transfer tax on a $500,000 house in Alabama?
The state part is $500.
Sources
- Alabama Department of Revenue – Recordation Tax (Code of Ala. §§40-22-1 to 40-22-12)
- Alabama SB216 (2012) enrolled text, §40-22-1
Last checked October 13, 2026. Rates in effect for residential sales; commercial, leasehold and entity transfers can differ. Always confirm with your title company or closing attorney before closing.