AL · BILL-SALE · Updated June 2026 · Free
Alabama Bill of Sale
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Alabama at a glance: Notarization Required: No (recommended) · Odometer Disclosure: Required · Title Transfer: At county courthouse
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Overview
Bills of Sale in Alabama
Alabama requires a bill of sale for motor vehicle private sales to support the title transfer at the Alabama DMV. The bill of sale documents the selling price, which is used to calculate sales tax.
Alabama charges 2% state sales tax on vehicle purchases plus local taxes. The buyer pays tax and transfers the title at the county courthouse.
Key Facts
Alabama Bill of Sale — Quick Reference
| Requirement | Alabama Rule |
|---|---|
| Notarization Required | No (recommended) |
| Odometer Disclosure | Required |
| Title Transfer | At county courthouse |
| Sales Tax | 2% state + local (varies by county) |
| Governing Law | Ala. Code § 40-23-100 |
Legal Requirements
Alabama Legal Requirements
- Seller must sign over the certificate of title.
- Odometer disclosure required for vehicles under 10 years old.
- Buyer pays sales tax at county courthouse when transferring title.
- Bill of sale should include sale price, date, vehicle description, and both parties' information.
Governing Laws
Alabama Governing Laws
Ala. Code § 32-8-44
Certificate of Title Transfer
Governs motor vehicle title transfer requirements in Alabama.
Read the full text of these laws at Cornell Law School's Alabama legal resources or your state legislature's official website.
Questions & Answers
Alabama Bill of Sale — Frequently Asked Questions
How do I transfer a car title in Alabama?
The seller signs the back of the title and provides a bill of sale. The buyer takes both documents to the county courthouse with payment for taxes and fees to complete the title transfer.
Does Alabama require a bill of sale for a car?
Alabama does not have a mandatory state bill of sale form, but a bill of sale is required in practice to document the transaction for tax purposes.
How much is sales tax on a car in Alabama?
Alabama charges 2% state sales tax on vehicle purchases. Local county and municipal taxes also apply, so the total rate varies by location.