Sales Tax for Vehicles
Newly acquired vehicles purchased from someone other than a licensed Alabama motor vehicle dealer; state and local sales taxes may be due. The State of Alabama has an automotive sales tax rate of 2.00%. Morgan County's rate is 0.50%. The municipal sales tax rates range is from 0.25% to 1.00% as shown below. *If you are not within a municipality, you would only pay sales tax with the state and county (2.50%)
Example: Purchased vehicle from an individual for $10,000.00 and the new owner resides inside the city limits of Decatur:
$10,000.00 X 3.50% = | $200.00 State |
$50.00 County | |
$100.00 City (of Decatur) | |
$350.00 Total Sales Tax |
Municipality | Percent |
Decatur | 1.00 |
Falkville | 0.75 |
Hartselle | 0.75 |
Trinity | 0.75 |
Eva | 0.25 |
Somerville | 0.50 |
Priceville | 1.00 |
