Complete Alabama retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #12 of 51.
3 bracket(s)
Treated as ordinary income
#47 (Highest)
State 4% + local avg 5.2%
Alabama is very retirement-friendly. No tax on Social Security, pensions are exempt, and property taxes are among the lowest in the nation.
Not taxed
Not taxed
None
| Rate | From | To |
|---|---|---|
| 2% | $0 | $500 |
| 4% | $500 | $3,000 |
| 5% | $3,000 | No limit |
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