Is my retirement income taxable to Alabama?

Effective January 1, 2023, Alabama exempts the first $6,000 of taxable retirement income for those 65 years of age or older.

Alabama allows for some retirement income to be excluded while some needs to be included as income on your return. Please refer to the Alabama instructions for a complete list. 

If your retirement income is exempt from Alabama taxes, you need to indicate as such on the state return.

Program Entry

If you need to make an adjustment to the taxable amount of your retirement distribution or report it as exempt, follow the steps below. 

1. State Section
2. Adjustments to Income 
3. Alabama Schedule RS (Retirement Schedule)

For your convenience, the federal amount of the retirement income is shown for you to refer to.

See also Is my military pension/retirement income taxable to Alabama?