# Alabama — Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference

For Alabama, trade-in credit allowed is full credit; statute or regulation citation is Administrative Rule 810-6-1-.22, recorded from its source on 2026-08-20.

- **State:** Alabama _(our reading, not quoted from the source)_
- **Trade-in credit allowed:** full credit _(our reading, not quoted from the source)_
- **Statute or regulation citation:** Administrative Rule 810-6-1-.22 _(verified: appears in the quote below)_

## What the source says

> When a used automotive vehicle or vehicles are taken in trade as a credit or partial payment on the sale of a new or used automotive vehicle, the sales tax is levied on the net difference. Other items exchanged for full or partial payment are to be included in the measure of the tax. (Administrative Rule 810-6-1-.22).

## Source

- https://www.revenue.alabama.gov/wp-content/uploads/2022/06/Automotive_Sales_Use_Lease_Tax_Guide.pdf

Last verified: 2026-08-20. Review by: 2027-08-20.
Part of [Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference](https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/).