Alabama tax guide

Alabama Income Tax Filing: Form 40, Exempt Income, Extensions

Updated October 5, 2026

Alabama residents file Form 40, or the simpler Form 40-A if their return qualifies. Nonresidents with Alabama income file Form 40NR. The due date is April 15, the same as the federal date. Alabama gives an automatic six-month extension with no form, but the tax is still due on the original date.

What Alabama leaves out of taxable income

Alabama's Department of Revenue keeps a long list of income that is exempt from state income tax. Check it before you report anything, because many retirees and service members owe less here than they expect.

Social Security and Railroad Retirement benefits.
Military retirement pay.
Military allowances paid to active-duty members, the National Guard and active reserves.
State pension systems, including the teachers, employees and judicial systems.
Defined benefit retirement plans that fall under the federal code section the Department names.
Unemployment compensation.
Severance pay that results from administrative downsizing, up to a limit the Department sets.
Inheritances, life insurance proceeds, workers' compensation, veterans disability payments and child support.

The list also covers interest from state and federal obligations and tuition benefits from Alabama college savings plans. Our veteran tax benefits overview covers the federal side of military pay.

Form 40, Form 40-A or Form 40NR

Alabama taxes people based on domicile. The Department describes it as where you live, have a permanent home, and plan to return to when you are away. That decides which form you use.

Form 40-A is for residents with only wages, interest and dividends, no itemized deductions and no adjustments to income. It also has an income limit, which the instructions list.
Form 40 is for residents and part-year residents. It is required if you itemize or claim adjustments.
Form 40NR is for nonresidents with Alabama-source income above their prorated exemption.
Form 40V is the payment voucher.

If you were a part-year resident and also had nonresident income in the same year, the Department says you must use both Form 40 and Form 40NR.

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Filing electronically

The Department steers filers to My Alabama Taxes, its free online system. It says all Alabama taxpayers can use it for individual income tax filing, and it gives instant confirmation that your return arrived. Authorized software providers are another route, and many of them offer free filing for qualifying taxpayers. You can also hire a tax professional to prepare and e-file the return. The Department lists volunteer assistance too.

Paper still works. If you mail a return, use the address on the Department's filing page and keep a copy of everything. Payment options live on the Department's Make a Payment page, so choose the method that fits you before the due date.

Not sure which route fits your return?

The due date, extension and estimated tax

The Alabama return is due April 15, or the next business day if that date falls on a holiday. The state's extension is automatic. You get six months, until October 15, and you do not file a form to get it.

An extension of time to file is not an extension of time to pay. The Department says interest and penalties build on any tax you have not paid by the original date. The IRS says the same about the federal return, so send what you owe by April 15 either way. Our extension guide explains it.

People who expect to owe more than the Department's threshold after withholding and credits must pay estimated tax. The Department lists four installment dates: April 15, June 15, September 15 and January 15. Read our estimated tax guide if you have side income that no one withholds from.

Part-year, nonresident and moving situations

Part-year residents prorate their income and deductions for the time they lived in Alabama. The Department also says part-year filers prorate the federal tax figure, using the share of income that is Alabama income.

Nonresidents prorate the personal exemption. They file only if Alabama gross income is above that prorated exemption.

If you earn money in Alabama while living in another state, read the nonresident rules before you assume your home state is the only one that wants a return.

Moving to Florida? Your last Alabama year may be a part-year return. See our moving to Florida guide for what shows that your domicile changed.

What to gather before you file in Alabama

The Department's filing page points to the Form 40 instruction booklet for attachment rules, so read that for your tax year. These records make the return easier no matter which form you use.

W-2 and 1099 forms, with the Alabama withholding boxes filled in.
Pension and retirement statements that show where each payment came from. A state pension or a military retirement payment may be exempt. Check each one against the Department's list.
The dates you moved in or out of Alabama, if you were a part-year resident.
Records of any estimated payments you made to Alabama during the year.
A copy of last year's return for comparison.

Sorting your income into exempt and taxable piles before you start is the quickest way to avoid paying tax Alabama does not ask for.

Why an Alabama return gets stuck

The Department's own list of common delays is short and fixable.

Wrong name, address or Social Security number.
A hard-to-read paper return. E-file avoids this.
Missing W-2 forms.
Math errors.
The wrong mailing address.
The wrong form. Form 40-A does not work if you itemize or have adjustments, and part-year plus nonresident income needs two forms.

Use the Department's Where's My Refund tool to check status. The Department tells filers to allow a long window before they expect a refund.

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FAQ

Does Alabama tax Social Security or military retirement?

No. The Department of Revenue's exempt income list includes federal Social Security benefits and military retirement pay. It also lists state pension systems and unemployment compensation.

Do I need a form to extend my Alabama return?

No. Alabama gives an automatic six-month extension to October 15 with no form. The extension covers filing only. Interest and penalties still build on tax not paid by the original date.

Which form do I use, 40 or 40-A?

Form 40-A is for residents with only wages, interest and dividends, no itemized deductions and no adjustments. Use Form 40 if you itemize or have adjustments.

I lived in Alabama for part of the year and earned money elsewhere. What do I file?

If you had both part-year resident income and nonresident income in the same year, the Department says to use both Form 40 and Form 40NR.

Where do I file an Alabama return online?

My Alabama Taxes is the Department's free filing system, and authorized software providers also offer e-file. A tax preparer can e-file for you too.

Nearby state guides

Florida Georgia

Sources

General information, not tax advice for your specific situation. Rules can change, so check the official sources below. Zero Fuss Taxes is a PTIN-holding tax preparation firm. We are not a CPA firm, enrolled agents or attorneys.

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