US Home Sales Tax

Alabama transfer tax calculator

Alabama charges a deed tax of $0.50 for every $500 of the sale price, rounded up to the next $500. The buyer usually pays it, so most sellers owe nothing.

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Other closing costs cover title, escrow or attorney fees and recording. One percent is a common planning figure.

Estimated net proceedsAlabama ยท Rates verified November 2026
Pay to the order ofYou, the seller$374,000

Three hundred seventy-four thousand and 00/100 dollars

$400,000 sale, less $26,000 in costs and payoff

Itemised estimate
Sale price$400,000
Agent commission-$22,000
Transfer taxRate: $0.50 per $500 (0.1%). Usually paid by the buyer.$0
Other closing costs-$4,000
Mortgage payoff$0
You keep$374,000

How transfer tax works in Alabama

Rate
$0.50 per $500 (0.1%)
Who usually pays
The buyer, by custom. Alabama law does not assign the tax to either side, so a contract can say otherwise.
Local taxes
None.
Official source
Alabama Department of Revenue
Last verified

Alabama transfer tax at common sale prices

Sale priceTotal transfer taxSeller's usual shareSeller keeps before mortgage payoff
$150,000$150$0$140,250
$250,000$250$0$233,750
$400,000$400$0$374,000
$600,000$600$0$561,000
$1,000,000$1,000$0$935,000

Assumes a 5.5% agent commission and 1% in other closing costs. Change any figure in the calculator above.

Questions Alabama sellers ask

How much is transfer tax in Alabama?

Alabama charges $0.50 per $500 (0.1%). On a $400,000 sale the total comes to $400, and the seller's usual share is $0.

Who pays the transfer tax in Alabama, the buyer or the seller?

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

Are there city or county transfer taxes in Alabama?

No. The rate is the same everywhere in Alabama.

How do I estimate my net proceeds in Alabama?

Start with the sale price, then subtract the agent commission, your share of the transfer tax, title and closing fees, and the balance left on your mortgage. On a $400,000 sale with a 5.5% commission and 1% in other costs, a Alabama seller keeps about $374,000 before paying off the mortgage.

Buying in Alabama instead? See taxes when buying a house in Alabama.

More on the basics: What closing costs does a seller pay?, Who pays the transfer tax, the buyer or the seller?, How to calculate net proceeds from a home sale.

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