Property tax, transfer tax and closing costs in Alabama

Alabama: Deed tax of $0.50 per $500 of value, or fraction thereof. A separate mortgage tax of $0.15 per $100 applies to the mortgage. Seller customarily pays the deed tax. Buyer customarily pays the mortgage tax. Annual appraisal with values set each October 1 for the following tax year.

Reviewed October 15, 2026. Every line links its statute or official source.

What Alabama sets

Transfer tax: Deed tax of $0.50 per $500 of value, or fraction thereof. A separate mortgage tax of $0.15 per $100 applies to the mortgage. Source: revenue.alabama.gov
Who customarily pays: Seller customarily pays the deed tax. Buyer customarily pays the mortgage tax. Source: revenue.alabama.gov
Local transfer taxes: Not stated. No official source confirmed this yet.
Reassessment cycle: Annual appraisal with values set each October 1 for the following tax year. Source: revenue.alabama.gov
Homestead and other exemptions: Homestead exemption of up to $4,000 in assessed value from state taxes and up to $2,000 from county taxes for an owner-occupied principal residence, with larger exemptions at 65 and over. Source: revenue.alabama.gov
Owner’s title policy: Not stated. No official source confirmed this yet.
How closings run: Attorney closings are customary. Source: alabar.org
Survey: Not stated. No official source confirmed this yet.
Other closing customs: Not stated. No official source confirmed this yet.

Alabama transfer tax on a $210,000 sale

State deed taxseller pays$210$210,000 ÷ $500 = 420 units (rounded up for any fraction) × $0.50 = $210

seller pays: $210
Total transfer tax: $210

Statutory transfer taxes on a $210,000 sale, as of the reviewed date. Who pays is custom and contract outside the statute’s primary liability. Local taxes described above are not in this figure unless listed as a line. Recording fees, title and attorney charges are separate.

Open the Alabama transfer tax calculator, with a link to share and an embed for your site.

Typical property tax in Alabama

Median real-estate tax paid: $788 a year
Per month: $66
Median owner-occupied home value: $209,900
Effective rate they imply: 0.38%

Census American Community Survey five-year file, 2020-2024, tables B25103 and B25077, owner-occupied homes. The median bill rose 34% against the 2015-2019 file. An estimate for a typical home, not yours. Your bill depends on the parcel, its exemptions and the next reassessment.

For agents

Your buyers ask what closing costs in Alabama and who pays. This page answers from the statute, with the date it was checked. Send it, or embed the calculator on your own site.

Ike lets a licensed real estate agent originate the mortgage on the deals they already close. Expected compensation is about 100 basis points per eligible funded loan once licensed and sponsored. Ike is preparing licenses state by state.

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One email when Alabama rates, exemptions or transfer taxes change, and when the next reassessment lands.

Sources

Ike Mortgage LLC. NMLS ID pending. For licensing information, go to: www.nmlsconsumeraccess.org. Nothing on this page is a loan payment, rate, term or down payment, and nothing here is a Loan Estimate.