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Government and private pension benefits: No state income tax Typically, retirees have to pay federal tax on any pension benefits they receive. In Alabama, however, pensions are typically tax-exempt.
Homestead Types Taxpayers age 65 and older with net taxable income of $12,000 or less on the combined (taxpayer and spouse) Federal Income Tax Return exempt from all ad valorem taxes. Taxpayer is permanently and totally disabled exempt from all ad valorem taxes.
Taxpayers using the Married Filing Jointly and Head of Family filing statuses are entitled to a $3,000 personal exemption. Part year residents are entitled to the full exemption amount. A dependent or student may claim a personal exemption even if claimed by someone else.
Alabama will not tax your pension income. While the state also doesnt tax Social Security income, other forms of retirement income, like 401(k) distributions, are subject to income tax.
Dont have any special circumstances that require you to file (like self-employment income) Earn less than $12,950 (which is the 2022 standard deduction for a single taxpayer)
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People also ask

Do I Have to Pay Income Tax in Alabama? Part-Year ResidentFiling StatusYou must file a return if your Alabama AGI is overSingle$4,000 (While an Alabama Resident)Head of family$7,700 (While an Alabama Resident)Married filing separately$5,250 (While an Alabama Resident)1 more row
Gifts, money, or other property you inherit or that was willed to you. Dividends on veterans life insurance. Life insurance proceeds received because of a persons death. Interest on obligations of the State of Alabama or any county, city, or municipality of Alabama.
Nonresidents must file a return if their Alabama income exceeds the allowable prorated personal exemption. Part year residents whose filing status is Single must file if gross income for the year is at least $4,000 while an Alabama resident.
Taxpayers using the Single and Married Filing Separately filing statuses are entitled to a $1,500 personal exemption. Taxpayers using the Married Filing Jointly and Head of Family filing statuses are entitled to a $3,000 personal exemption. Part year residents are entitled to the full exemption amount.
If you look at your Alabama tax forms, your Alabama Adjusted Gross Income will be listed on the last line of the Income and Adjustments section of your Form 40, 40A, or 40EZ. On Form 40, it is listed on line 10.

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