Taxes on Selling a House in Alabama

Selling a home in Alabama comes with more costs than you might expect, whether you’re leaving a family home in Birmingham, downsizing in Huntsville, or relocating from Mobile or Montgomery. Between real estate agent commissions, closing costs, and any repairs needed to get your property ready for buyers, these expenses can quickly eat into your profits. On top of these costs, there are taxes on selling a house in Alabama. It’s important to understand what you owe so you can figure out how much money you’ll actually take home from the sale. The good news is that you may qualify for tax breaks or exemptions that reduce what you owe. Let’s look at Alabama’s home-selling taxes, how they work, and what you can do to prepare for the costs ahead. What is Your Alabama Home Worth? Get a near-instant real estate house price estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes. Capital gains tax You’ve likely heard the term “capital gains tax,” but what is it? When you sell a home for more than its adjusted cost basis, the profit you mak...