How All 50 States Tax Your Retirement Income

Alabama

Skyline of Birmingham at Railroad Park in Birmingham, Ala.
Sean Pavone / Shutterstock.com

Social Security: Alabama does not tax Social Security benefits.

Other income: For 2019, the state’s income tax rates for individuals range from 2 to 5 percent, according to the nonprofit Federation of Tax Administrators (FTA). All tax rates mentioned in this article are from the FTA.

In addition to Social Security benefits, retirement benefits from multiple types of federal and state agencies also are exempt from Alabama income taxes, according to the state.

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