diff --git a/src/element/textElement.ts b/src/element/textElement.ts
index 552214c0..033b3db0 100644
--- a/src/element/textElement.ts
+++ b/src/element/textElement.ts
@@ -61,30 +61,29 @@ export const redrawTextBoundingBox = (
     if (!isArrowElement(container)) {
       const containerDims = getContainerDims(container);
       let nextHeight = containerDims.height;
-      const boundTextElementPadding = getBoundTextElementOffset(textElement);
       if (textElement.verticalAlign === VERTICAL_ALIGN.TOP) {
-        coordY = container.y + boundTextElementPadding;
+        coordY = container.y;
       } else if (textElement.verticalAlign === VERTICAL_ALIGN.BOTTOM) {
         coordY =
           container.y +
           containerDims.height -
           metrics.height -
-          boundTextElementPadding;
+          BOUND_TEXT_PADDING;
       } else {
         coordY = container.y + containerDims.height / 2 - metrics.height / 2;
         if (metrics.height > getMaxContainerHeight(container)) {
-          nextHeight = metrics.height + boundTextElementPadding * 2;
+          nextHeight = metrics.height + BOUND_TEXT_PADDING * 2;
           coordY = container.y + nextHeight / 2 - metrics.height / 2;
         }
       }
       if (textElement.textAlign === TEXT_ALIGN.LEFT) {
-        coordX = container.x + boundTextElementPadding;
+        coordX = container.x + BOUND_TEXT_PADDING;
       } else if (textElement.textAlign === TEXT_ALIGN.RIGHT) {
         coordX =
           container.x +
           containerDims.width -
           metrics.width -
-          boundTextElementPadding;
+          BOUND_TEXT_PADDING;
       } else {
         coordX = container.x + containerDims.width / 2 - metrics.width / 2;
       }
diff --git a/src/element/textWysiwyg.test.tsx b/src/element/textWysiwyg.test.tsx
index af8e487c..83b3251d 100644
--- a/src/element/textWysiwyg.test.tsx
+++ b/src/element/textWysiwyg.test.tsx
@@ -1165,5 +1165,128 @@ describe("textWysiwyg", () => {
       ).toEqual(36);
       expect(getOriginalContainerHeightFromCache(rectangle.id)).toBe(75);
     });
+
+    describe("should align correctly", () => {
+      let editor: HTMLTextAreaElement;
+
+      beforeEach(async () => {
+        Keyboard.keyPress(KEYS.ENTER);
+        editor = document.querySelector(
+          ".excalidraw-textEditorContainer > textarea",
+        ) as HTMLTextAreaElement;
+        await new Promise((r) => setTimeout(r, 0));
+        fireEvent.change(editor, { target: { value: "Hello" } });
+        editor.blur();
+        mouse.select(rectangle);
+        Keyboard.keyPress(KEYS.ENTER);
+        editor = document.querySelector(
+          ".excalidraw-textEditorContainer > textarea",
+        ) as HTMLTextAreaElement;
+        editor.select();
+      });
+
+      it("when top left", async () => {
+        fireEvent.click(screen.getByTitle("Left"));
+        fireEvent.click(screen.getByTitle("Align top"));
+        expect([h.elements[1].x, h.elements[1].y]).toMatchInlineSnapshot(`
+          Array [
+            15,
+            20,
+          ]
+        `);
+      });
+
+      it("when top center", async () => {
+        fireEvent.click(screen.getByTitle("Center"));
+        fireEvent.click(screen.getByTitle("Align top"));
+        expect([h.elements[1].x, h.elements[1].y]).toMatchInlineSnapshot(`
+          Array [
+            94.5,
+            20,
+          ]
+        `);
+      });
+
+      it("when top right", async () => {
+        fireEvent.click(screen.getByTitle("Right"));
+        fireEvent.click(screen.getByTitle("Align top"));
+
+        expect([h.elements[1].x, h.elements[1].y]).toMatchInlineSnapshot(`
+            Array [
+              174,
+              20,
+            ]
+          `);
+      });
+
+      it("when center left", async () => {
+        fireEvent.click(screen.getByTitle("Center vertically"));
+        fireEvent.click(screen.getByTitle("Left"));
+        expect([h.elements[1].x, h.elements[1].y]).toMatchInlineSnapshot(`
+            Array [
+              15,
+              25,
+            ]
+          `);
+      });
+
+      it("when center center", async () => {
+        fireEvent.click(screen.getByTitle("Center"));
+        fireEvent.click(screen.getByTitle("Center vertically"));
+
+        expect([h.elements[1].x, h.elements[1].y]).toMatchInlineSnapshot(`
+            Array [
+              -25,
+              25,
+            ]
+          `);
+      });
+
+      it("when center right", async () => {
+        fireEvent.click(screen.getByTitle("Right"));
+        fireEvent.click(screen.getByTitle("Center vertically"));
+
+        expect([h.elements[1].x, h.elements[1].y]).toMatchInlineSnapshot(`
+            Array [
+              174,
+              25,
+            ]
+          `);
+      });
+
+      it("when bottom left", async () => {
+        fireEvent.click(screen.getByTitle("Left"));
+        fireEvent.click(screen.getByTitle("Align bottom"));
+
+        expect([h.elements[1].x, h.elements[1].y]).toMatchInlineSnapshot(`
+            Array [
+              15,
+              25,
+            ]
+          `);
+      });
+
+      it("when bottom center", async () => {
+        fireEvent.click(screen.getByTitle("Center"));
+        fireEvent.click(screen.getByTitle("Align bottom"));
+        expect([h.elements[1].x, h.elements[1].y]).toMatchInlineSnapshot(`
+            Array [
+              94.5,
+              25,
+            ]
+          `);
+      });
+
+      it("when bottom right", async () => {
+        fireEvent.click(screen.getByTitle("Right"));
+        fireEvent.click(screen.getByTitle("Align bottom"));
+        expect([h.elements[1].x, h.elements[1].y]).toMatchInlineSnapshot(`
+            Array [
+              174,
+              25,
+            ]
+          `);
+      });
+    });
   });
 });