State Income Tax
Alabama imposes a state income tax using a graduated tax structure with 3 brackets ranging from 2% to 5%. The filing deadline is 2026-04-15. Social Security benefits are exempt from Alabama state income tax. Retirement income is generally taxable. Social Security and many government pensions are exempt; private retirement income exemption increased to $12,000 for age 65+ in 2026.
Retirement Income Details
Social Security and many government pensions are exempt; private retirement income exemption increased to $12,000 for age 65+ in 2026.
Does Alabama have a state income tax?
Yes. Alabama has a state income tax with a graduated structure ranging from 2% to 5% across 3 brackets.
What is the Alabama income tax rate?
Alabama has a graduated income tax with 3 brackets. The lowest rate is 2% and the highest rate is 5%.
Is Social Security taxed in Alabama?
No. Alabama does not tax Social Security benefits, which can be significant for retirees living on fixed incomes.
Is retirement income taxed in Alabama?
Yes. Alabama generally taxes retirement income. Social Security and many government pensions are exempt; private retirement income exemption increased to $12,000 for age 65+ in 2026.
When is the Alabama income tax filing deadline?
The Alabama state income tax filing deadline is 2026-04-15. You can file and pay through the official Alabama Department of Revenue portal.
What is the standard deduction in Alabama?
Alabama's standard deduction is $3,000 for single filers and $8,500 for married filing jointly. A personal exemption of $1,500 (single) may also apply.
How does Alabama income tax compare to neighboring states?
Alabama's top rate of 5% is in the moderate range nationally. Use the comparison table above to see how neighboring states compare.
Official Payment Portal
Alabama Department of Revenue
Last verified: 2026-03-31 · Always consult a tax professional before making financial decisions.