SB18 Alabama 2022 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Arthur OrrSenator
Republican
Co-Sponsors: Gerald H. Allen Will Barfoot Tom Butler Clyde Chambliss Chris Elliott Sam Givhan Andrew Jones Steve Livingston Tim Melson Greg J. Reed Clay Scofield J.T. Waggoner Tom Whatley Jack W. Williams
Session: Regular Session 2022
Title: Relating to income taxes, to provide that up to $6,000 of taxable retirement income is exempt from state income tax for individuals 65 years of age or older, Sec. 40-18-19 am'd.
Summary: SB18 would create a state income tax exemption for Alabama seniors, allowing up to $6,000 of taxable retirement income to be tax-free starting in 2023.
What This Bill Does
It amends Section 40-18-19 to add a new exemption for resident taxpayers aged 65 or older. Starting January 1, 2023, up to $6,000 of taxable retirement income is exempt from Alabama state income tax. This exemption covers retirement income from pensions, annuities, and other retirement compensation described in the statute. The Department of Revenue would implement rules to administer the exemption.

Who It Affects
65+ Alabama resident taxpayers who receive taxable retirement income would have up to $6,000 exempt from state income tax.
Retirees (and their beneficiaries) with retirement income from pensions, annuities, or other eligible retirement compensation who reside in Alabama.

Key Provisions
The act adds a new exemption: up to $6,000 of taxable retirement income for individuals age 65 or older, beginning January 1, 2023.
This exemption is part of the existing list of exemptions for resident taxpayers under Section 40-18-19 and applies to retirement income from various sources described in the statute.
The Department of Revenue may enact rules as necessary to implement and administer the exemption.
The act specifies its start date (January 1, 2023) and includes a general effective-date provision for when the act becomes law.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation