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Miscellaneous

Alabama Military Retirement Income Tax Exemption

Military retirement pay, and survivor benefits derived from it, are exempt from Alabama state, county, and municipal income tax.

Also called: military retirement, retired pay, pension, state income tax, survivor benefit.

For: Veteran or service member, survivor.

Where it applies

Written for the jurisdictions listed here.

Code section 40-18-20 exempts compensation received as retirement benefits by a person retired from the military service of the United States, and survivor benefits derived from that retirement. The exemption covers any state, county, or municipal income tax or similar tax. The Department of Veterans Affairs states the exemption without an age test, a rating test, or a dollar cap. VA disability compensation is a federal payment and is not this retirement exemption. Combat-zone pay has its own state income-tax exemption for active service, in section 40-18-3. That rule is about pay earned in a designated combat zone, not about retired pay.

Thresholds

No rating or income gate is recorded. Read the detail and the official source.

Sources

Updated

Last updated .

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Disclaimer

VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.