Alabama Vehicle Bill of Sale

Is a bill of sale required to sell a car in Alabama?

Alabama does not prescribe a standardized state-issued bill of sale form for private vehicle sales, but the Alabama Administrative Code (Rule 810-5-1-.246) codifies 11 minimum elements that a motor vehicle bill of sale must contain. In practice, a bill of sale is required because the county licensing official uses it to verify the purchase price and calculate sales tax. Any document that includes all 11 elements — buyer and seller names, addresses, VIN, year, make, model, body type, purchase price, date of sale, and signatures — is acceptable.

Does an Alabama bill of sale need to be notarized?

No — at the state level. The Alabama Department of Revenue does not require notarization of a vehicle bill of sale or the title assignment for standard private-party sales. However, bill of sale requirements in Alabama vary by county. Some county licensing officials require notarization, and others do not. The buyer should check with their local county licensing official or probate judge's office before completing the transaction to confirm what is required in their specific county.

What taxes and fees does the buyer owe?

Alabama charges a 2% state automotive sales tax on the purchase price — one of the lowest state vehicle tax rates in the country. However, county and city taxes are added on top of the state rate, and these local rates vary significantly. The combined total typically ranges from 3% to 6% depending on the buyer's location. Sales tax is collected by the county licensing official at the time of title transfer. The title application fee is $20 plus a $1.50 processing fee.

The buyer must register the vehicle within 20 calendar days of the purchase date — one of the shortest registration deadlines of any state. Failure to register within 20 days can result in penalties and interest charges.

What information does an Alabama vehicle bill of sale need to include?

Under Alabama Administrative Code Rule 810-5-1-.246, a motor vehicle bill of sale must contain at minimum: the purchaser's name and complete physical address, the seller's name (including any DBA name) and complete address, the vehicle's VIN, year, make, model or series number, body type, the purchase price, and the date of sale or acquisition. The odometer reading must be certified on the title assignment — the mileage on the title application must agree exactly with the mileage listed in the title assignment for all transfers involving a certificate of title.

What should the seller do after the sale?

The seller should remove their license plates from the vehicle before delivery. Alabama plates belong to the owner, not the vehicle. The seller should retain a copy of the signed title and the bill of sale for their records. Alabama does not require the seller to file a separate notice of sale with the Department of Revenue — the transfer is recorded when the buyer submits the title application at the county licensing official's office.