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Code of Alabama — Title 40 (Revenue and Taxation)

Ala. Code § 40-18-20

Exemptions - Military Retirement Benefits

Official textalison.legislature.state.al.us

# (a)

The first $4,750 retirement or compensation received as retirement benefit from the military services by any person retired from the military services of the United States of America and survivor benefits derived therefrom is hereby exempt from any state, county or municipal income tax or like tax by whatever name called.

# (b)

Effective January 1, 1983, the amount of the exemption provided for in subsection (a) of this section shall be increased to $8,000.

# (c)

Effective January 1, 1985, the amount of the exemption provided for in subsection (b) of this section shall be increased to $10,000.

# (d)

Effective January 1, 1989, and for all successive tax years, all retirement payments or compensation recognized under this section shall be exempt.

Last amended: Acts 1975, No. 1036, p. 2078, §1; Acts 1982, No. 82-416, p. 627; Acts 1990, No. 90-596, p. 1041, §2.

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In this chapter (40 sections)
  1. 40-18-14 · Adjusted Gross Income of Individuals. (Amended by Act…
  2. 40-18-14.1 · Deferred Compensation Plans
  3. 40-18-14.2 · Adjusted Gross Income
  4. 40-18-14.3 · Gross Income - Discount and Interest
  5. 40-18-15 · Deductions for Individuals Generally. (Amended by Act…
  6. 40-18-15.1 · Net Income Taxable Income Defined - Generally
  7. 40-18-15.2 · Net Operating Loss
  8. 40-18-15.3 · Deductions for Health Insurance Premiums
  9. 40-18-15.4 · Deductions for Certain Retrofitting or Upgrades to Homes -…
  10. 40-18-15.5 · Deductions for Certain Retrofitting or Upgrades to Homes -…
  11. 40-18-15.6 · Deductions for Contributions Made to Health Savings…
  12. 40-18-15.7 · Optional Increased Standard Deduction for Qualified Persons
  13. 40-18-15.8 · Deductions for Contributions to Qualifying Alabama…
  14. 40-18-16 · Depreciation
  15. 40-18-17 · Items Not Deductible
  16. 40-18-18 · Amortization of War or Emergency Facilities
  17. 40-18-19 · Exemptions - Generally. (Amended by Act 2026-603)
  18. 40-18-19.1 · Exemptions for Severance, Unemployment Compensation, Etc
  19. 40-18-19.2 · Exemption of Certain Death Benefit Payments for Peace…
  20. 40-18-19.3 · State Income Tax Credit for the Use of Personal Motor…
  21. 40-18-20 · Exemptions - Military Retirement Benefits
  22. 40-18-21 · Credits for Taxes Paid on Income from Sources Outside the…
  23. 40-18-21.1 · Annual Report of Credits Claimed for Taxes Paid to Foreign…
  24. 40-18-22 · Taxpayers Engaged in Multistate Business - Allocation and…
  25. 40-18-23 · Taxpayers Engaged in Multistate Business - Option of Certain…
  26. 40-18-24 · Taxation of Subchapter K Entity
  27. 40-18-24.1 · Composite Return and Payment by Nonresident Owner of…
  28. 40-18-24.2 · Taxation of Pass-Through Entities
  29. 40-18-24.3 · Taxation on Distributive Share of Interest, Dividends,…
  30. 40-18-24.4 · Alabama Electing Pass-Through Entity Tax Act
  31. 40-18-24.5 · Refundable Credit for Certain Owners, Members, Partners,…
  32. 40-18-25 · Estates and Trusts
  33. 40-18-25.1 · Estates and Trusts - Exemptions
  34. 40-18-25.2 · Estates and Trusts - Deductions from Gross Income of Net…
  35. 40-18-26 · Information from Source of Income
  36. 40-18-27 · Individual Taxpayer’s Returns; Liability of Innocent Spouse
  37. 40-18-28 · Returns of Subchapter K Entities and Single Member Limited…
  38. 40-18-29 · Fiduciary Returns
  39. 40-18-30 · Return When Accounting Period Changes
  40. 40-18-31 · Corporate Income Tax - Generally
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