Looking for a place to retire?!?7/3/2012
Looking for a place to retire?!?
Below are some quick facts on retiring in Alabama -- and a link to a GREAT pdf guide that will
answer all your questions on retirement benefits in our great state!
Look into Decatur, Al area -- we were rate amongst the Top 10 places to retire by CNN MONEY!
Call me today for more information on our area...
Patti Lambert, REMAX Platinum
The Patti Lambert Team
State Sales Tax: 4% (prescription drugs exempt); The rate can go as high as 12.0% depending on city and county taxes. The state administers over 200 different city and county sales taxes; however, it does not administer all county or city sales taxes. There is a 3% tax on food sold through vending machines; 2% on sales of motor vehicles, mobile homes and motorboats; and 4% on sales of tangible personal property.s
Gasoline Tax: 20.9 cents/gallon
Diesel Fuel Tax: 21.9 cents/gallon
Cigarette Tax: 42.5 cents/pack of 20
Personal Income Taxes
Tax Rate Range: Low 2.0%; High 5.0%
Income Brackets: *Lowest $500; Highest $3,000
Number of Brackets: 3
Personal Exemptions: Single $1,500; Married $3,000; Dependents $300
Standard Deduction: Single $2,000; Married filing joint return $4,000
Medical/Dental Deduction: Limited to excess of 4% of adjusted gross income
Federal Income Tax Deduction: Full
Retirement Income Taxes: Social Security, military, civil service, state/local government and qualified private pensions are exempt. All out-of-state government pensions are tax-exempt if they are defined benefit plans.
Retired Military Pay: Pay and survivor benefits not taxed.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
The state does not collect taxes on personal property such as boats and computers. Its ad valorem (property tax) is 6.5 mills (http://220.127.116.11/Taxincentives/proptaxincentives.html). Each city and county may levy has its own millage rate. For information on all ad valorem tax exemptions, click here. Homeowners 65 and older are exempt from all state property taxes. Some cities also assess separate property taxes. A homestead exemption up to $5,000 of assessed value is granted by the state on real property taxes. A larger exemption is available to persons over 65. Visit states property tax division web site. To view the states homestead summary chart, click here.