US Home Sales Tax

Taxes when buying a house in Alabama

An Alabama buyer usually pays two small taxes. The deed tax of $0.50 per $500 applies only to the part of the price not covered by the mortgage, and the mortgage itself is taxed at $0.15 per $100 of the loan.

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Loan amount: $320,000. Some states tax the mortgage, so the loan size changes the result there. Paying cash? Enter 100.

Estimated taxes when you buyAlabama ยท Rates verified November 2026
Pay to the order ofState and county tax offices$560

Five hundred sixty and 00/100 dollars

On a $400,000 purchase with a $320,000 loan

Taxes the buyer pays
Deed tax$0.50 per $500 of the price above the loan$80
Mortgage recording tax$0.15 per $100 of the loan$480
Total buyer taxes$560

Taxes only. Lender fees, title insurance, flat recording fees and prepaid property tax are separate closing costs.

What a Alabama home buyer is taxed on

Buyer's taxes
Transfer tax: $0.50 per $500 (0.1%). The buyer, by custom. Alabama law does not assign the tax to either side, so a contract can say otherwise.
Deed tax: $0.50 per $500 of the price above the loan, charged on the purchase price.
Mortgage recording tax: $0.15 per $100 of the loan, charged on the loan amount.
Transfer tax
The buyer, by custom. Alabama law does not assign the tax to either side, so a contract can say otherwise.
Sales tax
None. A home is real estate, and sales tax does not apply to it.
Official source
Alabama Department of Revenue, recordation tax
Last verified

Alabama buyer taxes at common prices

Purchase priceLoan with 20% downBuyer's taxes
$150,000$120,000$210
$250,000$200,000$350
$400,000$320,000$560
$600,000$480,000$840
$1,000,000$800,000$1,400

Questions Alabama buyers ask

Do buyers pay transfer tax in Alabama?

The buyer, by custom. Alabama law does not assign the tax to either side, so a contract can say otherwise.

Is there a mortgage tax in Alabama?

Yes. Alabama charges a mortgage recording tax of $0.15 for every $100 of the loan, rounded up to the next $100. The borrower usually pays it.

Is there sales tax when you buy a house in Alabama?

No. Sales tax applies to goods and some services, and a house is real estate, which no state taxes that way. The one-time taxes a Alabama buyer does pay are listed on this page.

How much tax does a buyer pay at closing in Alabama?

On a $400,000 home bought with 20% down, a Alabama buyer pays about $560 in state and local taxes: $80 in deed tax and $480 in mortgage recording tax. Lender fees, title insurance and prepaid property tax come on top.

Selling in Alabama? Use the Alabama transfer tax calculator.

Buyer taxes in other states