News & Updates

Law exempting first $6,000 of taxable retirement income from state tax effective July 1

Act No. 2022-294
by Rep. Lynn Greer, R-Rogersville, and Sen. Arthur Orr, R-Decatur

A law that takes effect July 1 gives those 65 or older an income tax exemption for the first $6,000 in taxable retirement income beginning in 2023.

The Lynn Greer Retirement Income Tax Cut Act of 2022 is named for Rep. Lynn Greer, R-Rogersville. Since 2003, Greer has championed giving retirees who rely on IRAs and 401(k)-type plans, called defined contribution plans, tax advantages like those who receive traditional pensions, called defined benefit plans.

The law, modeled after a Louisiana law, was part of millions in tax relief supported by the Republican majority in the 2022 regular session, said Rep. Danny Garrett, R-Trussville.

OTHER 2022 TAX LEGISLATION

This article is part of the Alabama Retail Report, a communication for Alabama Retail Association members. Not a member? Join us!

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