Deed tax is based on taxable value
Alabama charges deed tax when a deed is recorded with the county probate judge: 50 cents for each $500 of taxable value, or any part of $500. For example, $100,000 of taxable value means $100 in deed tax; $100,200 means $100.50.
Certain mortgage or vendor's-lien amounts may reduce taxable value when Alabama mortgage tax has been paid; the closing attorney confirms the amount. The deed must include proof of the actual price or value. Without proof, the probate office uses the latest tax assessment, and penalties can apply. Some deeds are exempt, including certain nominal-price deeds that only correct title.
When you sell to us, we pay the closing costs, including Alabama's deed tax. Your mortgage, liens, back taxes, and share of current property taxes are separate.
