What is the real estate transfer tax in Alabama?

In Alabama, a deed is not recorded until the deed tax is paid: $0.50 for each $500 or fraction of the value of the property it conveys, and $0.50 when the value is $500 or less. Only the value above any mortgage or vendor’s lien on the property on which the mortgage tax has been paid is taxed. The tax is figured on the actual purchase price or actual value, proved on a Department of Revenue form, and without that proof on the most recent property tax assessment plus a penalty. No tax is due on the transfer of a mortgage on which the mortgage tax has been paid or on a deed for nominal consideration made to perfect title. Counties and cities can add their own tax where state law lets them, so check the county where the deed is recorded. This is Ala. Code § 40-22-1.

WhatAlabama
State transfer tax$0.50 per $500 of value conveyed

What the statute says

“… upon all such instruments executed to convey real or personal property situated in this state of more than $500 in value there shall be paid the sum of $.50 for each $500 or fraction thereof in value of property conveyed by such instrument …”

Quoted word for word from the section’s text.

Source

Ala. Code § 40-22-1

Read the statute in the Code of Alabama (Alabama Legislature): alison.legislature.state.al.us.

Checked against the statute on November 15, 2026.

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses this rule

This page states the state’s rule so the costs and paperwork of a sale can be checked against it before a contract is signed. An owner on Seayora keeps each property’s owners of record and its documents in one place.

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