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How can you make remove the background and replace with transparency (as represented by checkered background in PS)? Is there any limitations in the file type I can export the image to?

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up vote 12 down vote accepted
  1. Select Layer → Transparency → Add Alpha Channel
  2. Select the background using the Fuzzy Selection Tool (Magic Wand)

    and press the Del key.

GIF will allow you single-color transparency, while PNG has full alpha channel support.

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I found this while trying to get the "Color to Aplha" option enabled, unsuccessfully. It works well. – Ferdinand Prantl Oct 20 '13 at 13:59
  1. Open the image and choose Select > By Color from the menu.
  2. Click on the color you'd like to remove.
  3. Select Colors > Color to Alpha from the menu and click OK.

This will result in the transparent, checkered background that you're looking for. If the background is made up of multiple colors, just repeat these three steps as necessary.

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The Color to Alpha option doesn't activate. – Oxwivi Jun 24 '11 at 15:56

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