Free Alabama Vehicle Bill of Sale
Selling or buying a vehicle in Alabama hinges on one document the county license-plate office actually wants to see: the bill of sale. Alabama's Department of Revenue accepts form MVT 32-13B as the standard, and your county probate or revenue commissioner's office will use it alongside the assigned title 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.
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Alabama Vehicle Bill of Sale — What You Need to Know
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: Transfers between immediate family — spouse, parent, child, or sibling — may qualify for exemption from the 2% state sales tax with proper documentation submitted to ALDOR.
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
- Use Alabama form MVT 32-13B or a private bill of sale that captures buyer/seller names, addresses, VIN, odometer, sale price, and date.
- Have the seller sign the title's assignment of ownership section in front of the buyer — Alabama does not require notarization but the title transfer itself does.
- Record the odometer reading on both the title and bill of sale; federal law requires it for any vehicle under 20 model years old.
- Buyer takes the bill of sale, signed title, and ID to their county license-plate issuing official within 20 calendar days of purchase.
- Pay the 2% state motor vehicle sales tax plus county/city add-ons (often 1-4% additional) at the county office during title application.
- Apply for a new Alabama title ($15 application fee) and register the vehicle in the buyer's name at the same visit.
- If the sale is between immediate family, ask the county office about the family-transfer sales tax exemption and bring proof of relationship.
Common Pitfalls
- Missing the 20-day window to apply for title and registration triggers a $15 late title penalty plus registration penalties that compound monthly.
- 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 clean bill of sale plus a properly assigned title is everything the Alabama Department of Revenue and your county license-plate office need to put the vehicle in your name on the same day.