SB18 Summary

• Amends Section 40-18-19 of the Alabama Code to create a new exemption allowing up to $6,000 of taxable retirement income to be exempt from state income tax.

• The exemption applies only to individual taxpayers who are 65 years of age or older, effective January 1, 2023.

• The Department of Revenue is authorized to enact rules necessary to implement and administer the exemption provisions.

• The bill becomes effective on the first day of the third month following passage and approval by the Governor.

• The Senate passed the bill on February 6, 2022, with a vote of 28-0.