The military says it's not yet sure what caused the crash near its large military airport in northern Algeria, a country in North Africa.
President Abdelaziz Bouteflika's called for three days of official mourning for the soldiers and their families aboard the plane.
According to the defense ministry, ten crew members died in the crash and most of the dead are army personnel and their families.
The ministry said in a statement that 247 passengers and 10 crew members were killed.
Algerian state news agency said the Soviet-designed Il-76 plane was headed for Bechar in southwest Algeria.
Among the dead were 26 members of the Polisario Front, seeking independence from Morocco for Western Sahara and supported by Algeria, reports said.
Victims' remains were being transported to a military hospital in the town of Ain Naadja for identification.
Mariah Coogan is seen in a video posted to social media from a small plane that later crashed in Scottsdale, Arizona, on April 9, 2018.
Another local station, Ennahar TV, spoke to an injured farm worker, who was on the ground when the plane fell onto its wing before bursting into flames.
NTSB investigators were at the crash site on Tuesday examining the burned wreckage next to a tree.
Passengers from Western Sahara, a disputed territory annexed by Morocco after Spain withdrew in 1975, were among the fatalities. The Algerian navy operates quite a lot of of the planes.
Airplane carrying Algerian troopers and their households reportedly crashes shortly after takeoff killing tons of. The plane has been in production since the 1970s, and is widely used for both commercial freight and military transport. 257 people died in the crash. There was a single survivor.