Alabama transfer tax calculator
Alabama charges the deed recording tax at $0.50 per $500 of price above the new mortgage. On a $200,000 home, that comes to $40. By custom, the seller pays it.
Below is every Alabama transfer tax rate, state, county and city, and who pays it by custom. Rates checked 2026-09-29.
Free Alabama seller net sheet calculator
Change any number and the local costs update.
| Real estate commission (5%) | −$10,000 |
| First mortgage payoff | −$120,000 |
| Deed recording tax | −$40 |
| Release / satisfaction recording | −$25 |
| Title insurance and settlement | −$1,525 |
| Other closing fees | −$45 |
| Estimated net to seller | $68,365 |
How much is the transfer tax in Alabama?
On a $200,000 home, it is about $40 at statewide rates. The table lists the state rules, with who pays each one by custom.
| Tax | Level | Rate | Who pays by custom |
|---|---|---|---|
| Deed recording taxAla. Code 40-22-1: only the value in excess of a mortgage recorded with the deed (on which mortgage tax is paid) is taxable, so a purchase-money loan reduces the base. | State | $0.50 per $500 of price above the new mortgage | Seller |
Who pays the transfer tax in Alabama?
By custom, the seller pays it. Deed recording tax: paid by the seller. The purchase contract can change who pays.
How does the Alabama transfer tax change with price?
It goes up with the price. On a $1,000,000 home, it is about $200 at statewide rates.
| Sale price | Seller pays | Buyer pays | Total |
|---|---|---|---|
| $200,000 typical home | $40 | $0 | $40 |
| $250,000 | $50 | $0 | $50 |
| $500,000 | $100 | $0 | $100 |
| $1,000,000 | $200 | $0 | $200 |
Does Alabama have a mortgage tax?
Yes. Alabama also taxes the buyer's new mortgage. Cash buyers do not pay it.
| Tax | Level | Rate | Who pays by custom |
|---|---|---|---|
| Mortgage recording tax | State | $0.15 per $100 | Buyer |
Are there transfer tax exemptions in Alabama?
Often, yes. Transfers between spouses, to a living trust, and by gift or inheritance are often exempt or taxed less. So are some first-time buyer and low-price sales. The calculator covers an ordinary home sale. Check an exemption with the title company or the county recorder before you count on it.
Sources
Checked 2026-09-29. These are estimates, not tax advice. The title or escrow company confirms the final figures.
Alabama transfer tax questions
How much is the transfer tax in Alabama?
Alabama charges the deed recording tax at $0.50 per $500 of price above the new mortgage. On a $200,000 home, that comes to $40. By custom, the seller pays it.
Who pays the transfer tax in Alabama?
Deed recording tax: paid by the seller. The purchase contract can change who pays.
How much is the transfer tax on a $500,000 home in Alabama?
About $100 at statewide rates.
Does the buyer pay transfer tax in Alabama?
Not by custom. The seller usually pays the Alabama transfer tax.
Is the transfer tax deductible?
Not as a tax. For a seller, the transfer tax is a selling expense that lowers the gain on the sale. A buyer who pays it adds it to the home's cost basis (IRS Publications 523 and 551). Ask a tax adviser about your sale.
When is the transfer tax paid?
At closing. The title or escrow company collects it from the side that owes it. It pays the tax when the deed is recorded.
Put the deed recording tax on a seller net sheet.
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