Alabama Real Estate Transfer Tax

Figures verified November 12, 2026 against Alabama Department of Revenue, recordation tax · Update log

Short answer

Alabama's deed tax is $0.50 per $500 (0.1%). The law doesn't name a side; the purchase contract decides, and local custom varies by county. The probate judge's office collects it when the deed is recorded (in Alabama, deeds are recorded in probate court). On a $500,000 home, it comes to about $500.

Free calculator

Alabama transfer tax calculator

Enter the sale price to see each tax, who pays it, and the total. Amounts like 650k or 2.5m work.

Sale price

Property

Alabama

Transfer tax: $500 (0.1% of the price)

Alabama deed taxSet by the contract$500

Seller pays: $0
Buyer pays: $0
Set by the contract: $500

Giving the house to an heir instead of selling it? Usually no tax, because no price is paid, but check first. How it works in Alabama

An estimate from the rates on our Alabama page. The title company or closing attorney works out the final figure; recording fees and the agent's commission aren't included.

Alabama transfer tax rates

Tax	Rate	Who pays
Alabama deed tax	$0.50 per $500 (0.1%)	Set by the contract

Who pays the transfer tax in Alabama?

The law doesn't name a side; the purchase contract decides, and local custom varies by county. The probate judge's office collects it when the deed is recorded (in Alabama, deeds are recorded in probate court).

Whatever the custom, the purchase contract can shift the tax to the other side, so check it before you agree a price. The closing agent collects the tax from the sale money and pays it when the deed is recorded.

Selling an inherited house in Alabama

An inherited house reaches the heirs in one of three ways, and the transfer tax depends on which:

The executor deeds the house to the heirs. Alabama's deed tax is figured on the value of the property conveyed, so ask the probate judge's office whether an executor's deed to an heir with no price paid owes it before you record.
The house passes outside probate, to a surviving joint owner or under a transfer-on-death deed. There is no sale and no new deed from the estate, so no transfer tax; the new owner records a death certificate or affidavit.
The executor sells the house. When the executor sells the house to an outside buyer, the transfer tax is due as on any sale. The estate pays the seller's share out of the sale proceeds, and the closing agent usually collects it.

The heirs or the estate also owe income tax only on any rise in value after the death, because the house gets a stepped-up basis. The seller's transfer tax counts as a selling expense and lowers that gain. See what's left for each heir in the inherited house net proceeds calculator.

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The Executor's Final Tax Returns Kit

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Transfer taxes in other states

Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · Florida · Georgia · Hawaii · Idaho · Illinois · Indiana · Iowa · Kansas · Kentucky · Louisiana · Maine · Maryland · Massachusetts · Michigan · Minnesota · Mississippi · Missouri · Montana · Nebraska · Nevada · New Hampshire · New Jersey · New Mexico · New York · North Carolina · North Dakota · Ohio · Oklahoma · Oregon · Pennsylvania · Rhode Island · South Carolina · South Dakota · Tennessee · Texas · Utah · Vermont · Virginia · Washington · West Virginia · Wisconsin · Wyoming

Or compare them all in the 50-state table.

Frequently asked questions

How much is the transfer tax in Alabama?

Deed tax: $0.50 per $500 (0.1%). On a $500,000 home, that comes to about $500 in total.

Who pays the transfer tax in Alabama, the buyer or the seller?

Do you pay transfer tax when you inherit a house in Alabama?

Alabama's deed tax is figured on the value of the property conveyed, so ask the probate judge's office whether an executor's deed to an heir with no price paid owes it before you record.

Does an estate pay transfer tax when it sells a house in Alabama?

When the executor sells the house to an outside buyer, the transfer tax is due as on any sale. The estate pays the seller's share out of the sale proceeds, and the closing agent usually collects it.

Is transfer tax deductible?

Not as a tax deduction, but the seller's share counts as a selling expense: it lowers the amount realized, and so the taxable gain on the sale. The buyer's share is added to the buyer's cost basis.

Sources

1.Alabama Department of Revenue, recordation taxrevenue.alabama.gov

This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.