Alabama +28 more Retirement Income Tax Calculator
Alabama exempts Social Security but taxes other retirement income.
Alabama, Georgia, Illinois, South Carolina, Arizona, North Dakota, Arkansas, Iowa, Mississippi, North Carolina, Delaware, Maryland, Hawaii, New Jersey, New York, Indiana, Louisiana, Pennsylvania, Kansas, Virginia, Missouri, Nebraska, Oklahoma, California, Idaho, Kentucky, Maine, Massachusetts, Michigan share this page.
Their rules produce the same answer to within a rounding difference, so publishing
separate near-identical pages would add URLs without adding information. Every figure
below applies to all 29.
Alabama retirement income tax estimator
Alabama exempts Social Security but taxes other retirement income.
Alabama tax —
After state tax —
Effective state rate —
Alabama at a glance
| Figure | Alabama | Source |
|---|---|---|
| Taxes Social Security? | No | [2] |
| Top marginal rate | 5.00% | [2] |
| Taxes pension income? | Generally yes | [2] |
| Cost of living index | 85 | [1] |
Alabama highlighted. Same data as the table below, shown as a distribution so the comparison is visible at a glance.
Highlighted: Alabama, ranked 21 of 50. Median 4.55%.
Alabama state tax by retirement income mix
Annual Alabama tax on each combination of Social Security and other retirement income.
| Social Security | No other income | +$10,000 other | +$20,000 other | +$30,000 other | +$45,000 other | +$60,000 other | +$80,000 other | +$110,000 other |
|---|---|---|---|---|---|---|---|---|
| $9,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $12,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $15,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $18,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $21,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $24,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $27,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $30,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $33,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $36,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $39,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $42,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $45,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $48,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
| $54,000 | $0 | $500 | $1,000 | $1,500 | $2,250 | $3,000 | $4,000 | $5,500 |
Worked figures for Alabama
Alabama values:
| Profile | Gross | State Tax | Net | Effective |
|---|---|---|---|---|
| $18,000 SS + $0 pension + $5,000 401k | $23,000 | $250 | $22,750 | 1.09% |
| $24,000 SS + $0 pension + $10,000 401k | $34,000 | $500 | $33,500 | 1.47% |
| $24,000 SS + $12,000 pension + $10,000 401k | $46,000 | $1,100 | $44,900 | 2.39% |
| $30,000 SS + $20,000 pension + $15,000 401k | $65,000 | $1,750 | $63,250 | 2.69% |
| $30,000 SS + $30,000 pension + $20,000 401k | $80,000 | $2,500 | $77,500 | 3.13% |
| $36,000 SS + $40,000 pension + $25,000 401k | $101,000 | $3,250 | $97,750 | 3.22% |
| $42,000 SS + $50,000 pension + $40,000 401k | $132,000 | $4,500 | $127,500 | 3.41% |
| $48,000 SS + $60,000 pension + $50,000 401k | $158,000 | $5,500 | $152,500 | 3.48% |
How Alabama compares nationally
On top marginal income tax rate, Alabama ranks #21 of 50 at 5.00% — 10% above the median of 4.55%. The national range runs from 0.00% (Wyoming) to 13.30% (California).
| Rank | State | Top marginal income tax rate |
|---|---|---|
| #19 | Idaho | 5.30% |
| #20 | South Carolina | 5.21% |
| #21 | Alabama | 5.00% |
| #22 | Georgia | 4.99% |
| #23 | Illinois | 4.95% |
Alabama questions, answered with Alabama numbers
Does Alabama tax Social Security?▾
No. Alabama exempts Social Security, though other retirement income is generally taxable.
What would a $65,000 retirement income cost in Alabama tax?▾
On $30,000 Social Security, $20,000 pension and $15,000 of 401(k) withdrawals, Alabama would take about $1,750 — an effective state rate of 2.69%, leaving $63,250.
Is Alabama a good state to retire in on taxes alone?▾
Alabama's top marginal rate is 5.00% and its cost of living index is 85. Tax is only one input — housing at a $242,000 median matters at least as much.
Other exempts social securitys
Last reviewed 2026-08-26. Alabama figures only — verify with the relevant Alabama agency before acting. How this is calculated.