Free Alabama Bill of Sale Template & Generator

Alabama Bill of Sale Requirements

Additional Forms Required in Alabama

• Title Application (Form MVT 5-1)

Alabama state law requires a bill of sale for motor vehicle transactions between private parties. The Alabama Department of Revenue publishes minimum-content requirements under Rule 810-5-1-.246 — names and addresses of both parties, sale date, price, and vehicle identification details. The DOR has confirmed that neither the bill of sale nor the title assignment must be notarized.

Alabama charges a 4% state sales tax on vehicle purchases, with additional county taxes that may apply. The buyer is responsible for paying all applicable taxes at the time of title transfer, which must be completed at the county probate/license office within 30 days. The state uses Form MVT 5-1 (Title Application), submitted along with the bill of sale.

For out-of-state vehicles being registered in Alabama for the first time, a VIN inspection may be required. Both parties should retain a copy of the bill of sale for their records.