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37 states that don't tax Social Security benefits

Kiplinger Logo By Sandra Block of Kiplinger | Slide 2 of 39: Sales Tax: 4% state levy. Localities can add as much as 7.5% to that, and the average combined rate is 9.15%. Alabama is one of the few states that does not exempt food from sales tax.

Income Tax Range: Low: 2% (on up to $1,000 of taxable income for married joint filers and up to $500 for all others). High: 5% (on more than $6,000 of taxable income for married joint filers and more than $3,000 for all others). Alabama also allows residents to deduct all of their federal income tax from state taxable income. Some counties and cities charge an “municipal occupational tax” of 0.5%-2% on income; the average levy across the state is 0.5%, according to the Tax Foundation.

Property Taxes: The median property tax on Alabama’s median home value of $128,500 is $550

Inheritance and Estate Taxes: There is no inheritance tax or estate tax.

For details on tax breaks for retirees and state taxes on other retirement income see the complete guide to taxes on retirees in Alabama.

SEE ALSO: The Best Social Security Claiming Strategies: How Much Do You Really Know?

Alabama

Sales Tax: 4% state levy. Localities can add as much as 7.5% to that, and the average combined rate is 9.15%. Alabama is one of the few states that does not exempt food from sales tax.

Income Tax Range: Low: 2% (on up to $1,000 of taxable income for married joint filers and up to $500 for all others). High: 5% (on more than $6,000 of taxable income for married joint filers and more than $3,000 for all others). Alabama also allows residents to deduct all of their federal income tax from state taxable income. Some counties and cities charge an “municipal occupational tax” of 0.5%-2% on income; the average levy across the state is 0.5%, according to the Tax Foundation.

Property Taxes: The median property tax on Alabama’s median home value of $128,500 is $550

Inheritance and Estate Taxes: There is no inheritance tax or estate tax.

For details on tax breaks for retirees and state taxes on other retirement income see the complete guide to taxes on retirees in Alabama.

SEE ALSO: The Best Social Security Claiming Strategies: How Much Do You Really Know?

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