ALABAMA RETIREMENT INCOME TAX · TAX YEAR 2026
Does Alabama tax Social Security and retirement income?
Alabama does not tax Social Security benefits. Alabama exempts defined-benefit pensions, including government and military pensions, and from 65 excludes the first $6,000 per person of 401(k) and IRA withdrawals. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays no Alabama income tax for 2026.
Your estimate
- Alabama income tax
- $0.00
- Federal income tax
- $1,810.00
- Total income tax
- $1,810.00
Subtracted from Alabama income
- Social Security (not Alabama income)
- $11,300.00
- Defined-benefit pension exemption
- $20,000.00
- Retirement income exclusion (65+)
- $6,000.00
Private pensions are treated as defined-benefit plans under IRC 414(j), which Alabama exempts; other defined-contribution and annuity payouts would share the $6,000 exclusion with IRA income.
Alabama tax at different retirement incomes
Alabama income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $234 | $32 |
| $60,000 | $577 | $291 |
| $100,000 | $1,136 | $1,226 |
| $150,000 | $1,756 | $1,952 |
Does Alabama tax Social Security?
No. Alabama does not tax Social Security or railroad retirement benefits.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Alabama taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Alabama taxes none of it.
Does Alabama tax pensions?
No. Federal, Alabama state and teacher, and military pensions are exempt, as are private pensions paid by a defined-benefit plan, at any age and with no dollar limit. Payouts from defined-contribution plans and annuities are taxed and share the $6,000 exclusion at 65 with IRA income; the calculator treats a private pension as a defined-benefit plan.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Alabama exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $20,000 | $0 |
| Alabama government | $20,000 | $0 |
| Federal civil service | $20,000 | $0 |
| Military | $20,000 | $0 |
Does Alabama tax IRA and 401(k) withdrawals?
Partly. IRA and 401(k) withdrawals are taxed, but each person 65 or older can exclude the first $6,000. Qualified Roth IRA withdrawals are not taxed.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays $435 in Alabama income tax for 2026.
At what age do retirement tax breaks start in Alabama?
At 65, for the $6,000 exclusion on IRA, 401(k) and other taxable retirement income. Exempt pensions have no age requirement.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 64 | $99 | $120 |
| 65Retirement income exclusion (65+) | $0 | $0 |
What the calculator leaves out
Private pensions are treated as defined-benefit plans under IRC 414(j), which Alabama exempts; other defined-contribution and annuity payouts would share the $6,000 exclusion with IRA income.
- Schedule RS does not state when age 65 is measured; the calculator uses age on December 31.
The calculator uses Alabama rules from the 2025 forms and instructions, the latest published.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.