Alabama
Title Fee
$15.00
Sales Tax Rate
2.0%
Other Tax Rate
1.5%
Who must title a vehicle in Alabama?
All motor vehicles, motorcycles, trailers, and vessels must be titled. Exceptions include vehicles over 35 years old, certain trailers and specialty vehicles, U.S. government vehicles, implements of husbandry, ATVs/ORVs/UTVs, snowmobiles, and various low-powered or old vehicles. Manufactured homes (model year 2000 and newer) must be titled, one per unit.
Who issues titles and where are applications submitted?
Titles are issued by the Alabama Department of Revenue, Motor Vehicle Division. Applications are made through a Designated Agent (county licensing office, financial institution, or dealer) and submitted electronically via MyDMV. Paper applications are not accepted.
What documents are needed as proof of ownership?
New vehicles: Manufacturer’s Certificate of Origin (MCO).
Used vehicles: Certificate of Title.
Non-title states: Registration certificate.
Government surplus: U.S. Government Certificate (SF97-1).
Foreign vehicles: Ownership docs, US Customs forms, NHTSA/EPA forms as applicable, and English translation if needed.
A bill of sale is also required for all transfers.
How much does a title cost?
$15.00 standard fee, plus $1.50 Designated Agent fee and $1.50 county commission. Manufactured homes add $5.00 (additional local fees may apply).
Vessels: $20.00 plus $5.00 Designated Agent fee.
Duplicate titles: $15.00 plus agent/county fees.
Are electronic signatures and titles allowed?
Electronic signatures are accepted for applications and supporting docs (except the physical certificate of title or MCO). Electronic, scanned, or faxed docs must include a valid handwritten signature.
What’s the process for title transfer?
Title is assigned by seller to buyer (with odometer disclosure if applicable), and application is submitted via a Designated Agent within 10 days.
Vessels must be titled within 20 days of transfer.
Out-of-state titles with bill of sale accepted for casual sales only.
VIN/HIN inspections required for first-time Alabama titles.
Are there special titles or brands?
Distinctive Certificate of Title for vehicles from foreign jurisdictions (may carry undisclosed lien warning).
Bonded titles available if ownership is unclear.
Title brands include rebuilt, salvage, flood, lemon, etc.
Alabama does not accept bonded titles from other states.
How are duplicate/corrected titles handled?
Request via Designated Agent or MyDMV. $15.00 fee plus agent/county fees.
Corrected titles require a supporting statement; no fee if departmental error.
What taxes apply to vehicle purchases/registrations?
Sales/Use Tax: 2.0% state rate plus local taxes based on purchase price. Local rates vary (city/county), often adding 2.5–5% or more.
Ad Valorem (Property) Tax: Based on assessed market value, paid to the county before registration.Class I (public utility): 30% of value
Class II (commercial/leased): 20%
Class IV (private passenger): 15%
Other Taxes: Casual sales of manufactured homes are taxed (except Morgan County).
Trade-in credits: Allowed, reduces taxable amount.
Credits for taxes paid in other states: Allowed, if reciprocal.
How and when are taxes paid?
At registration/title application, through the county licensing office.
Penalties apply for late payment (10% penalty, minimum $50).
Are there exemptions?
Certain farm vehicles qualify for a 1.5% sales tax rate.
Vehicles sold to nonresidents and removed within 72 hours may be exempt, with proper documentation.
Military personnel: Nonresident military are exempt from ad valorem tax with affidavit; other military exemptions for registration fees may apply.
How are liens recorded and perfected?
Liens are recorded on the title at time of application, using MyDMV.
Must be recorded within 30 days of creation for priority; otherwise, as of delivery date.
Up to two liens may be shown on a title.
ELT (Electronic Lien & Title) program available for Designated Agents.
How are liens released or extended?
Release via MyDMV or on notarized company letterhead. Must be submitted within 10 days of satisfaction.
Liens expire after 12 years (4 years for vehicles older than 12 years), unless extended.
How does repossession work in Alabama?
The secured party (lender) may repossess a vehicle after a default, without judicial process if no breach of peace.
Lienholder completes a Repossessed Motor Vehicle Affidavit (MVT 15-1) and may assign the title to a new purchaser if lien is on the title.
No lien release is required from a subordinate lienholder when the first lienholder repossesses.
For out-of-state repos, equivalent documentation is required.
Redemption: Borrower may redeem before auction/sale.
Notice: Required before vehicle is sold.
What about abandoned or junk vehicles?
Vehicles unclaimed for 30+ days may be sold as abandoned, following electronic reporting and notice.
Junk vehicles are not titled; must be reported and title surrendered for cancellation.
Department of Revenue
https://www.revenue.alabama.gov/division/motor-vehicle/
2545 Taylor Road, Montgomery, AL 36117
PO Box 327630 (Registration), Montgomery, AL 36132
PO Box 327640 (Title), Montgomery, AL 36132
334.242.9000
Enforcement Agency:
Alabama Department of Revenue, Motor Vehicle Division2545 Taylor Road, Montgomery, AL 36117
PO Box 327630 (Registration), Montgomery, AL 36132
PO Box 327640 (Title), Montgomery, AL 36132
Phone: 334.242.9000
Official Website
Additional Regulatory/Enforcement Contacts:
Alabama Law Enforcement Agency (ALEA), Highway Patrol DivisionPO Box 1511, 301 South Ripley Street, Montgomery, AL 36102
334.676.6003 (Highway Patrol), 334.676.6004 (Motor Carrier Safety Unit)
ALEA Website
Key Regulations:
Oversees vehicle titling, registration, tax collection, lien recording, and repossession.
Maintains vehicle and registration records, enforces compliance with financial responsibility (insurance), and issues specialty and standard plates.
Handles abandoned/junk vehicle processes, and issues exemptions for military and certain nonresidents.