HB162 Summary

• Amends Section 40-18-19 of the Code of Alabama 1975 to create a new $6,000 income tax exemption for retirement income, effective January 1, 2023.

• The exemption applies only to individual taxpayers who are 65 years of age or older and covers the first $6,000 of taxable retirement income.

• Adds the exemption as subdivision (13) to existing retirement income tax exemptions for teachers, employees, firefighters, peace officers, and federal retirees.

• Authorizes the Department of Revenue to enact rules necessary to implement and administer the new exemption.

• Becomes effective on the first day of the third month following passage and approval by the Governor, or upon becoming law otherwise.