1. The Alabama deed tax rate is
Answer & explanation
Answer: C. §40-22-1 sets the deed tax at $0.50 for each $500 or fraction. $0.15 per $100 is the mortgage tax under §40-22-2.
closing
Alabama Deed Tax
Alabama's transfer tax on deeds under §40-22-1: $0.50 for each $500 of value or fraction of $500, collected by the county judge of probate before recording, or effectively about $1.00 per $1,000. The taxable value is the value conveyed minus any assumed mortgage on which mortgage tax was already paid. A separate mortgage tax applies to new loans at $0.15 per $100 of debt or fraction. Who pays is set by contract and local practice.
- Exam tip
- Always round up fractions: divide by 500, round up to a whole number, then multiply by $0.50. Subtract an assumed mortgage before computing.
- Example
- On a $245,300 sale with no assumed loan, 245,300 / 500 = 490.6, rounded up to 491, times $0.50 equals $245.50 in deed tax.
Related terms & state variants
Sources
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Last verified: 2026-10-23