Transferring an Alabama Vehicle Title

By Javier Marín, Editor·Last reviewed September 2026·How we check this

Alabama title transfers run through the county license commissioner (or probate judge or revenue commissioner, depending on the county), under the authority of the Alabama Department of Revenue (ADOR) Motor Vehicle Division. Buyers have 30 days from the date of sale to complete the transfer before late fees and penalty interest start to apply.

Seller's responsibilities

Before the buyer can complete the transfer, the seller must:

Sign the back of the title in the "Seller's Assignment" section.
Print the buyer's name, address, and date of sale.
Record the odometer reading at sale (federal disclosure required for vehicles less than 20 years old).
Date and sign the bill of sale showing the agreed purchase price.
Remove the license plate — Alabama plates stay with the seller, not the vehicle.
File a Notice of Sale with ADOR (or the county) to release liability for any subsequent violations.

The seller is generally liable for traffic citations and registration violations on the vehicle until either the buyer's title transfer is recorded or the seller's Notice of Sale is on file. Filing promptly protects against future liability.

Buyer's responsibilities

The buyer brings the following to the county license commissioner within 30 days of sale:

The signed-over title (or out-of-state title if the seller's title is from another state).
The bill of sale, signed and dated by the seller, showing the purchase price.
Proof of Alabama liability insurance at 25/50/25 minimums.
Driver's license or Alabama ID for each new owner.
Lien information if the vehicle is financed.
Completed MVR-7 — Application for Certificate of Title.
Completed MVR-32 — Vehicle Registration Application.

Title and registration fees

Title fee — $20.
Sales tax — 4% state plus county/city, averaging around 9.29% statewide.
Registration fee — varies by vehicle weight and model year.
Ad valorem tax — assessed at registration based on county millage.
Lien recording fee — varies by county.
Plate fee — typically $23-$32 plus county add-ons.

Alabama doesn't have a flat-cap structure like South Carolina's IMF; sales tax scales with the purchase price. A $30,000 vehicle in a 9.29% combined-rate county owes roughly $2,787 in sales tax at registration. Some counties allow a trade-in credit that reduces the taxable amount.

Sales tax exemptions

A few transfers are exempt from sales tax — the buyer still pays the title fee but skips the sales tax:

Gifts between immediate family members (spouse, parent, child, grandparent, grandchild, sibling), with proper documentation.
Transfers to or from a revocable living trust where ownership doesn't change in substance.
Transfers due to inheritance, with proper court documentation.
Transfers between a person and a wholly owned business (with documentation).

Each exemption requires specific paperwork (gift affidavit, trust agreement, letters testamentary, certificate of organization) submitted with MVR-7.

Out-of-state titles

When the seller's title is from another state, the county license commissioner performs a VIN inspection on the vehicle and ADOR issues an Alabama title in the buyer's name. Sales tax applies based on the bill of sale price and the buyer's county. The 30-day clock starts from the date of purchase, not the date the buyer crosses into Alabama. ADOR title processing is typically slower than the registration — expect 6-12 weeks for the metal title to arrive in the mail.

Title with a lien

If the vehicle is financed, the lender holds the original title. The buyer's lender (if there's a refinance) or the seller's lender must release the lien to ADOR electronically or by paper letter. ADOR records the new lien on the freshly issued Alabama title and mails the title to the lender — the buyer receives only a registration card and plate at the county office.

Late title transfers

Beyond 30 days, late penalties accrue. Alabama applies a fixed-fee late penalty plus interest on unpaid sales tax. Driving without a valid title and registration is a separate citation, and accumulated unpaid fees can roll into a registration suspension that requires reinstatement before plates can be issued — see Alabama reinstatement.

For broader context, see our national title transfer guide.