Quick answers
Does Alabama have a state estate tax?
State estate tax: No. The pinned estate-tax dataset (2026.v2) has no row for Alabama, so it cites no state statute; the state page records no state estate or inheritance tax.
Does Alabama have an inheritance tax?
Inheritance tax: No. The pinned estate-tax dataset (2026.v2) has no row for Alabama, so it cites no state statute; the state page records no state estate or inheritance tax.
Can you use a transfer-on-death deed in Alabama?
Transfer-on-death deed for real estate: None — not available for real property. No TOD-deed statute — Alabama has not adopted the URPTODA; confirm alternatives with an Alabama attorney
What is the Medicaid look-back period in Alabama?
Look-back period: 60 months (Alabama Administrative Code Rule 560-X-25-.09; Amended October 26, 2018; consolidated chapter revised July 15, 2023).
Does Alabama tax Social Security benefits?
Social Security benefits: Exempt (2025 Form 40 Booklet — Alabama Individual Income Tax Return Instructions; tax year 2025).
State estate tax
Estate-tax dataset 2026.v2
- State estate tax
- NoNo dataset row
The pinned estate-tax dataset (2026.v2) has no row for Alabama, so it cites no state statute; the state page records no state estate or inheritance tax.
· Checked July 20, 2026
Full detail: Alabama estate and inheritance tax page
Inheritance tax
Estate-tax dataset 2026.v2
- Inheritance tax
- NoNo dataset row
The pinned estate-tax dataset (2026.v2) has no row for Alabama, so it cites no state statute; the state page records no state estate or inheritance tax.
· Checked July 20, 2026
Full detail: Alabama estate and inheritance tax page
Transfer-on-death deed
- Transfer-on-death deed for real estate
- None — not available for real propertyNot primary-verified
No TOD-deed statute — Alabama has not adopted the URPTODA; confirm alternatives with an Alabama attorney
· Checked July 26, 2026
- Controlling statute
- Not primary-verified
No TOD-deed statute — Alabama has not adopted the URPTODA; confirm alternatives with an Alabama attorney
· Checked July 26, 2026
Full detail: Alabama transfer-on-death deed page
Small-estate procedure
- Current rule
- $47,000 indexed small-estate amount; no real property; probate-court summary distribution after 30-day noticeVerified
Source: Ala. Code § 43-2-692 (Act 2025-431; Comptroller valuation memo) · Effective: 2026 · Checked August 23, 2026
Full detail: Alabama small-estate procedure page
Medicaid long-term-care eligibility
Medicaid dataset 2026.v16
- Institutional income limit
- $2,982 per monthVerified
- Applies to: single institutional applicant.
Source: Alabama Medicaid Eligibility Handout (Form 207) · Effective: Medicaid Eligibility Handout 01/26; PDF updated March 11, 2026 · Checked November 14, 2026
- Applicant resource limit
- $2,000Verified
- Applies to: single institutional applicant; measured on the first day of the month.
Source: Alabama Administrative Code Rule 560-X-25-.06(1) · Effective: Amended: filed September 11, 2018; effective October 26, 2018 · Checked November 14, 2026
- Community-spouse resource allowance
- $32,532 minimum to $162,660 maximumVerified
- Applies to: institutionalized applicant with a community spouse.
Source: Alabama Administrative Code Rule 560-X-25-.16 · Also: CMS 2026 SSI and January spousal-impoverishment standards · Effective: Latest amendment filed September 11, 2018; effective October 26, 2018 · Checked November 14, 2026
- Community-spouse monthly maintenance-needs allowance
- $2,705 minimum to $4,066.50 maximumVerified
- Applies to: institutionalized applicant with a community spouse; actual allocation depends on spouse income and adjustments.
Source: Alabama Administrative Code Rule 560-X-25-.16 · Also: CMS 2026 minimum maintenance-needs standards · Also: CMS 2026 SSI and January spousal-impoverishment standards · Effective: Latest amendment filed September 11, 2018; effective October 26, 2018 · Checked November 14, 2026
- Home-equity limit
- $752,000 for 2026Verified
- Applies to: applicant without a protected spouse or qualifying child in the home.
Source: Alabama Medicaid State Plan, Supplement 17 to Attachment 2.6-A (substantial home equity), TN 06-006 · Also: Alabama Administrative Code Rule 560-X-25-.06(2)(e)1 · Also: CMS 2026 SSI and January spousal-impoverishment standards · Effective: TN No. 06-006; approved 01/24/07; effective 12/01/06; elects $500,000 increased annually by the CPI-U from 2011 · Checked November 14, 2026
Full detail: Alabama Medicaid eligibility page
Medicaid look-back
Medicaid dataset 2026.v16
- Look-back period
- 60 monthsVerified
Source: Alabama Administrative Code Rule 560-X-25-.09 · Effective: Amended October 26, 2018; consolidated chapter revised July 15, 2023 · Checked September 2, 2026
- Transfer-penalty divisor
- Not yet verified
The reviewed primary material did not provide a current, effective-dated value or rule for this cell.
· Checked September 2, 2026 · Ask the state agency
- How the state administers the penalty
- Divide cumulative uncompensated value by the average monthly private-patient nursing-facility cost. Whole months form the restricted period; the fraction becomes dollars added to patient liability. The period starts in the transfer month or first otherwise-eligible institutional-care month, whichever is later, without overlap.Verified
Source: Alabama Administrative Code Rule 560-X-25-.09 · Effective: Amended October 26, 2018; consolidated chapter revised July 15, 2023 · Checked September 2, 2026
Full detail: Alabama Medicaid look-back page
Medicaid estate recovery
Medicaid dataset 2026.v16
- Recovery scope
- All real and personal property and any other assets in the recipient's estate as defined by Alabama probate law, including homes, land, vehicles, cash and bank accounts.Verified
Source: Alabama Medicaid Estate Recovery Program Q and A, question 5 · Effective: File dated 12-22-23 in the agency's file name; the document itself prints no date · Checked November 14, 2026
- Controlling authority
- Alabama Administrative Code Rule 560-X-33-.05Verified
Source: Alabama Administrative Code Rule 560-X-33-.05 · Effective: Effective January 25, 2016 · Checked November 14, 2026
- Exemptions and deferrals
- Recovery is delayed until after the surviving spouse's death and while a surviving child is under 21 or blind or permanently and totally disabled.Verified
Source: Alabama Administrative Code Rule 560-X-33-.05 · Effective: Effective January 25, 2016 · Checked November 14, 2026
- Hardship waiver
- Waiver or delay may apply when a family farm or family business produces limited income and is the sole income-producing estate asset of one or more heirs; each heir applies separately.Verified
Source: Alabama Medicaid Estate Recovery FAQs · Effective: File dated 12-22-23 in the agency's file name; the document itself prints no date · Checked November 14, 2026
- Lien practice
- Alabama may place a lifetime lien on real property of certain permanently institutionalized recipients, subject to dependent-relative, intent-to-return, bona-fide-sale, and other exclusions; returning home can cause release.Verified
Source: Alabama Medicaid property-lien procedures · Effective: Dated April 5, 2021 · Checked November 14, 2026
Full detail: Alabama Medicaid estate-recovery page
State income tax on retirement income
Retirement-income tax dataset 2026.v4
- Social Security benefits
- ExemptVerified
- Alabama excludes federal Social Security benefits.
Source: 2025 Form 40 Booklet — Alabama Individual Income Tax Return Instructions · Effective: tax year 2025 · Checked January 9, 2026
- Public pensions
- Exempt when conditions are metVerified
- Alabama exempts specified government retirement systems; other public pensions remain taxable unless a listed exemption applies.
- The payment must come from an enumerated exempt system, including Alabama Teachers, Employees, or Judicial retirement, Civil Service, TVA, Foreign Service, the U.S. Government Retirement Fund, or a qualifying Alabama firefighter or police system.
Source: 2025 Form 40 Booklet — Alabama Individual Income Tax Return Instructions · Effective: tax year 2025 · Checked January 9, 2026
- Private pensions
- Exempt when conditions are metVerified
- Payments from an IRC 414(j) defined-benefit plan are exempt; other private retirement income is generally taxable after basis.
- The plan administrator must establish that the payment comes from an IRC section 414(j) defined-benefit plan.
- Other pension and annuity amounts generally remain taxable to the Alabama-taxable portion after basis recovery.
Source: 2025 Form 40 Booklet — Alabama Individual Income Tax Return Instructions · Effective: tax year 2025 · Checked January 9, 2026
- IRA and 401(k) distributions
- Partly taxed or conditionalVerified
- Taxable IRA and 401(k)-type distributions are generally taxed after Alabama basis; at age 65 or older, each taxpayer may exclude up to $6,000 of otherwise taxable retirement income.
- The retirement-income exclusion begins at age 65.
- Maximum exclusion per eligible taxpayer for otherwise taxable retirement income.
- IRA, SEP, Keogh, 401(k), and 403(b) distributions are generally reported to the Alabama-taxable extent after Alabama basis.
- A qualifying rollover under IRC sections 402, 403, 408, or 409 remains excluded.
Source: 2025 Alabama Form 40 and Schedule RS · Effective: tax year 2025 · Checked January 9, 2026
- Military retirement pay
- ExemptVerified
- Alabama excludes military retirement pay.
- The payment must be military retirement pay.
Source: 2025 Form 40 Booklet — Alabama Individual Income Tax Return Instructions · Effective: tax year 2025 · Checked January 9, 2026
Full detail: Retirement-income tax dataset, all states (JSON)
About this page
This page assembles entries from datasets the site already publishes; it adds no figure of its own. Entries marked “Not yet verified” or “Pending” have no primary-source value in the underlying dataset yet. Rules change, so confirm anything you plan to act on with the source, the state agency, or a licensed attorney.