AL · Tax Year 2026
How Alabama taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
Defined-benefit pensions fully exempt; $6,000 per person of otherwise taxable retirement income
$6,000 exclusion at age 65+
Additional Notes
Defined-contribution distributions differ from defined-benefit pensions
Does Alabama tax Social Security benefits?
No. Alabama does not tax Social Security retirement benefits.
Does Alabama tax pension income?
No. Alabama exempts pension income from state income tax.
Does Alabama tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Alabama. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Alabama a tax-friendly state for retirees?
It depends on your income mix. Alabama offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
Partner Services
Planning your retirement location involves more than state taxes. Compare states, model income scenarios, and get personalized advice from a fiduciary financial planner.
DataTactic may earn a referral fee from partner services. Data on this page is independent and unaffected by partnerships.
Data Source
Official Alabama state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
Related for Alabama
Neighboring States
Data reflects tax year 2026 rules sourced from official Alabama state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.