Free Alabama Boat Bill of Sale
Alabama began titling boats on January 1, 2024, through the Department of Revenue — the same agency that titles cars. Only boats built after 2023 must be titled (under 18 feet, only with a 75-horsepower or larger engine), so most used boats still change hands on a bill of sale and a registration transfer. The 12-character Hull Identification Number (HIN) stamped on the boat's transom is the boat equivalent of a VIN and should appear on the bill of sale. Registration and the Alabama boat number come separately from ALEA's Marine Patrol Division.
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Boats are sold with undisclosed liens far more often than cars. Our guide covers running a title search, decoding the HIN, separating boat and trailer titles, and what a Coast Guard document means for the transfer process. Read: Boat Bill of Sale: Complete Guide →
Alabama Boat Bill of Sale — What You Need to Know
Primary Form
Standard bill of sale
Primary ID Field
HIN (Hull ID Number)
Sales Tax
2%
Title Required
Yes
Alabama began titling boats on January 1, 2024. A title is required for a boat built after December 31, 2023; a boat under 18 ft needs one only if its engine is 75 horsepower or more. Boats built before 2024 are not required to have a title (owners of boats 26 ft or longer may apply for one). The buyer applies through a designated agent, such as the county license plate office, within 20 days. Registration and numbers come separately from ALEA's Marine Patrol Division.
Inspection
Not required
Sales Tax Details
2% Alabama state sales tax applies to boat sales, plus applicable county/municipal add-ons. Tax is paid to the county license plate issuing official (probate judge or license commissioner) when the boat is registered.
Inspection Requirements
No safety inspection is required prior to a private boat sale in Alabama.
Registration
Registration for this vehicle type is handled by Alabama Law Enforcement Agency (ALEA), Marine Patrol Division — not the same agency that handles cars in Alabama. Plan for separate filings.
Alabama Boat Sale — Step-by-Step Checklist
- Locate the HIN on the starboard side of the transom at the top outer corner; photograph it and confirm it matches the title (if the boat has one) and the registration certificate.
- Write a bill of sale that includes: HIN, year, make/manufacturer, model, hull length, hull material (fiberglass, aluminum, etc.), engine make/model/serial number, sale price, and full names and addresses of both parties.
- If the boat has a title, sign it over in the seller's section; if it has no title, the signed bill of sale is the buyer's proof of ownership.
- Seller: tell ALEA about the sale within 15 days — the transfer ends your registration certificate for the boat.
- Provide the buyer with the signed title, bill of sale, and any lien-release documentation.
- If the boat must be titled, the buyer applies through a designated agent (such as the county license plate office) within 20 days of the transfer; the vessel title fee is $20 plus a $5 agent fee. The buyer pays the 2% state sales tax plus local tax when registering.
- Buyer registers the boat in their name with ALEA's Marine Patrol Division, through the county probate judge or license commissioner.
- Both parties retain copies of all documents; the buyer should keep the bill of sale on board as supplemental ownership proof.
Common Pitfalls
- Confusing the title process with the registration process: in Alabama, boat titling (Department of Revenue, through a designated agent) and boat registration (ALEA Marine Patrol) are two separate steps handled by two separate agencies. Completing only one is a common and costly mistake.
- Missing or tampered HIN: federal law requires every boat manufactured after November 1972 to have a permanent HIN. A missing or altered HIN can indicate a stolen vessel — buyers should verify the HIN against the title and run it through the USCG documentation database before finalizing the purchase.
- Skipping the bill of sale for smaller boats: most boats built before 2024 are not titled in Alabama, so a bill of sale is often the main proof of ownership change for these vessels.
- Forgetting lien-release documentation: if the boat was financed, the lender's name appears on the title. The seller must obtain a written lien-release letter from the lender before the probate office will issue a clean title to the buyer.
Alabama Boat Bill of Sale — FAQs
Which Alabama agency handles boat titles versus boat registration?
The Alabama Department of Revenue issues boat titles, through designated agents such as the county license plate office. ALEA's Marine Patrol Division handles annual registration and the boat number. A boat built after 2023 needs both after a private sale; an older boat usually needs only the registration transfer.
What boats must be titled in Alabama?
A boat built after December 31, 2023 must be titled. If it is under 18 feet, it needs a title only when its engine is 75 horsepower or more. Boats built before 2024 do not need a title, though an owner of a boat 26 feet or longer may apply for one. Documented vessels are not titled. Registration with ALEA's Marine Patrol Division is a separate step.
Where is the HIN located on my boat?
Federal regulations require the HIN to be on the starboard (right) side of the transom at or near the top, and a duplicate HIN in a hidden structural location. It is a 12-character alphanumeric code. If the HIN is not present or appears to have been altered, do not complete the purchase without first contacting ALEA.
Do I pay sales tax when buying a boat in Alabama?
Yes. The same 2% state sales tax that applies to cars applies to boat sales. County and municipal add-ons may raise the effective rate. The buyer pays the tax to the county licensing official when registering the boat.