$BillOfSale.app

Free Alabama Vehicle Bill of Sale

Selling or buying a vehicle in Alabama puts real weight on the bill of sale: on a titled vehicle it is one way to prove the price for the casual sales tax (unless the buyer accepts the state's standard value), and on a vehicle outside the title law it is the ownership document. Where it serves as proof of the price, your county license plate issuing official uses the documented price — or the state's standard value, if the buyer accepts it — to calculate the 2% state sales tax (plus local add-ons) at the moment of transfer. Alabama doesn't require an annual safety inspection, which keeps things simple — but it also means buyers can't lean on a state inspector to flag problems. A thorough, signed bill of sale with the VIN, odometer reading, sale price, and an explicit "as-is" clause protects both sides if anything surfaces after the keys change hands.

Alabama Requirements: Register the vehicle (obtain a license plate) within 20 calendar days of acquisition; for a titled vehicle the title application must be completed before registration. 2% State automotive rate (plus local tax).

Seller Information

Buyer Information

Vehicle Details

Sale Information

Condition & Warranty

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Transferring any motor vehicle? Our guide covers VIN verification, title transfer timelines, payment safety, and the eight things to do before handing over the keys — applicable to any car, truck, or SUV. Read: Car Bill of Sale: Complete Guide →

Alabama Vehicle Bill of Sale — What You Need to Know

Primary Form
Designated Agent's Bill of Sale
Agency
Alabama Department of Revenue, Motor Vehicle Division
Primary ID Field
VIN
Sales Tax
2%
Title Required
Yes
Alabama titles motor vehicles not more than 35 model years old. Older vehicles transfer on a bill of sale plus prior registration.
Inspection
Not required

Sales Tax Details

Alabama charges a 2% state sales tax on motor vehicle purchases. County and city add-ons typically push the effective rate to 3-6% — paid at your county license-plate (probate or revenue commissioner's) office at title application.

Exemption: Ask the county licensing official or ALDOR whether a family transfer qualifies for any exemption before relying on it.

Inspection Requirements

Alabama is one of a small handful of states with no annual state safety or emissions inspection requirement for private vehicles.

Registration

Registration for this vehicle type is handled by County License Plate Issuing Official (probate judge or revenue commissioner) — not the same agency that handles cars in Alabama. Plan for separate filings.

Alabama Vehicle Sale — Step-by-Step Checklist

  1. Use a private bill of sale that captures buyer/seller names, addresses, VIN, odometer, sale price, and date.
  2. Have the seller sign the title's assignment of ownership section in front of the buyer — Alabama does not require the title assignment to be notarized, but the seller must sign it.
  3. Record the odometer reading on both the title and bill of sale; federal law requires it for any vehicle of model year 2011 or newer.
  4. Buyer takes the signed title, proof of the price (a bill of sale or other evidence, unless accepting the state's standard value), and ID to their county license-plate issuing official within 20 calendar days of purchase.
  5. Pay the 2% state motor vehicle sales tax plus county/city add-ons (often 1-4% additional) at the county office during title application.
  6. Apply for a new Alabama title ($15 application fee) and register the vehicle in the buyer's name at the same visit.
  7. If the sale is between family members, ask the county office whether any family-transfer exemption applies and what proof it needs.

Common Pitfalls

  • Missing the 20-day window to apply for title and registration triggers a $15 penalty plus interest.
  • Skipping the odometer entry on the title is a federal violation and the county office will reject the application, forcing the buyer to track down the seller again.
  • Assuming a verbal "as-is" agreement is enough — without it written on the bill of sale, Alabama implied warranty case law can leave the seller exposed for weeks after the sale.
  • Forgetting that Alabama has no state inspection means the buyer is the inspector; failing to verify the VIN matches the title in person can mask a salvage or stolen-vehicle history.

Pro Tip

A properly assigned title, the title application, and proof of the price (a clean bill of sale, or the state's standard value) are the core of what your county license-plate office reviews to put the vehicle in your name.

Alabama Vehicle Bill of Sale — FAQs

Do I need to notarize a vehicle bill of sale in Alabama?
No — Alabama does not require notarization of the bill of sale itself, and the Department of Revenue says the title assignment does not need to be notarized either. However, the title's assignment of ownership must be signed by the seller, and some out-of-state titles require notarization on their face when transferred into Alabama. If you're buying a vehicle titled in a state that demanded notarization (like Kentucky or Ohio), have the seller sign in front of a notary before they hand the title over to avoid a bounced application at your county office.
How much sales tax will I pay on a used vehicle in Alabama?
Alabama's state sales tax on motor vehicles is 2%, but every county adds its own piece and most cities add another 1-3%, so the effective rate at the counter is usually 3-6% of the purchase price. The county license-plate official calculates the exact figure using the buyer's address — not the seller's. On a $15,000 used car you should expect $450-$900 in combined sales tax due at title application, plus the $15 title fee and standard registration fees.
What if the seller lost the title?
The seller must apply for a replacement Alabama title before the sale can complete — Alabama does not let buyers register a vehicle on a bill of sale alone if the vehicle is covered by Alabama's title law. The replacement application fee is $15; the owner can apply online through the Department of Revenue's title portal or through any designated agent. Don't accept a vehicle and hand over money on a promise that the title is coming; you have no enforceable way to register it until the seller's name is cleared from the lost title.