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Is my retirement from the State of Florida taxable in Alabama?

This retirement income is from  the state.

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Is my retirement from the State of Florida taxable in Alabama?

Pensions and retirement plans are taxed according to where you live as opposed to where they were earned.

From @TurboTaxAndreaC1 : Some types of retirement income are taxed in Alabama. Income from retirement accounts like an IRA or a 401(k) will be taxed as regular income, at Alabama’s state income tax rates. Tax rates range from 2% to 5%. More information can be found here https://revenue.alabama.gov/incometax/xempt.cfm

However, income from pensions is not taxed in Alabama. If you receive money from a public pension like a Teachers Retirement System or from a private company pension, that income will not be taxed by the state.

NOTE: There is federal tax on pension benefits you receive. But in Alabama, pensions are tax exempt. That includes state pensions from various groups including state employees and teachers.

Please feel free to post any additional details or questions in the comment section.




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Level 1

Is my retirement from the State of Florida taxable in Alabama?

Pensions and retirement plans are taxed according to where you live as opposed to where they were earned.

From @TurboTaxAndreaC1 : Some types of retirement income are taxed in Alabama. Income from retirement accounts like an IRA or a 401(k) will be taxed as regular income, at Alabama’s state income tax rates. Tax rates range from 2% to 5%. More information can be found here https://revenue.alabama.gov/incometax/xempt.cfm

However, income from pensions is not taxed in Alabama. If you receive money from a public pension like a Teachers Retirement System or from a private company pension, that income will not be taxed by the state.

NOTE: There is federal tax on pension benefits you receive. But in Alabama, pensions are tax exempt. That includes state pensions from various groups including state employees and teachers.

Please feel free to post any additional details or questions in the comment section.