Alabama Military Retired Pay Income Tax Exemption

Alabama Department of Revenue

Full exemption from Alabama income tax on military retired pay

Alabama does not tax military retired pay. Your military pension is fully exempt from Alabama income tax.

How to apply

There is nothing to apply for. Leave your military retired pay out of the income you report on your Alabama return. If Alabama tax was withheld from it by mistake, file a return to claim the refund.

What you'll need

Your Form 1099-R showing the retired pay, kept with your tax records.

Eligibility

You are an Alabama resident filing an Alabama income tax return
You receive military retired pay

Source

Official source

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