Do you have to pay taxes when you sell your house in Alabama?
Do you have to pay taxes when you sell your house in Alabama?
Alabama law requires the buyer to withhold tax on the sale or transfer of Alabama real estate by a nonresident. In order to withhold, the buyer must determine if the “seller” is a nonresident.
Who pays transfer tax in Alabama?
The real estate transfer tax is paid to a local or state agency to transfer real property from one owner to another. The buyer cannot take ownership of the property until the transfer tax has been paid. In Alabama, the transfer tax is usually paid by the buyer.
How much is capital gains tax on real estate in Alabama?
Alabama income and capital gains tax rates
| Tax rate | Single | Married filing jointly |
|---|---|---|
| 2% | Up to $500 | Up to $1,000 |
| 4% | $501 to $3,000 | $1,001 to $6,000 |
| 5% | Over $3,000 | Over $6,000 |
How do I get a Alabama withholding tax number?
Alabama Withholding Tax Account Number
- If you are a new business, register online with the AL Department of Revenue.
- If you already have an AL Withholding Tax Account Number, you can find this on correspondence from the AL Department of Revenue or by contacting the agency at 334-242-1584.
How do you become exempt from property taxes in Alabama?
If you are over 65 years of age, or permanent and totally disabled (regardless of age), or blind (regardless of age), you are exempt from the state portion of property tax. County taxes may still be due.
Who pays documentary stamp tax buyer or seller?
The tax is paid by the person making, signing, issuing, accepting or transferring the documents. However, whenever one party to the taxable document enjoys exemption from the tax, the other party thereto who is not exempt shall be the one directly liable for the tax.
