Appalachian Mountain Realty Guide

Retirement Information

Blount County Alabama

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Taxes

You can probably expect to pay lower taxes in Alabama than in any other state in the nation.

Income Taxes
Most retirement income is exempt from state taxation. Included are defined benefit plans as defined under section 414(j) of the Internal Revenue Code, military retirement pay, United States Civil Service Retirement System benefits, U.S. Government Retirement Fund benefits, federal railroad retirement benefits, federal social security benefits, disability retirement payments (and other benefits) paid by the Veteran's Administration, United States Foreign Service Retirement and Disability Fund annuities and Tennessee Valley Authority Pension Systems. Neither Blount County nor any of its municipalities levies county, city, or town income taxes.

Sales Taxes
Alabama levies a 4 percent state sales tax. Blount County levies a 2 percent sales tax. Some cities have an additional city sales tax. (For example, the combined sales tax rate in Oneonta is 8 percent.)

Gasoline and Motor Fuels Tax
Each gallon of gasoline purchased in Alabama is taxed at 16 cents per gallon. Motor fuel (diesel) is taxed at 17 cents per gallon. There is also a 2-cent per gallon inspection fee imposed on both gasoline and motor fuels (diesel) that is administered by the Department of Agriculture and industries. Local taxing authorities may also impose a local gasoline or motor fuels tax. These rates vary.

Estate Taxes
Alabama does not have an inheritance tax but does have an estate tax. An estate left by a deceased individual is subject to tax only if the estate exceeds the federal $600,000 value exemption. in addition, the next $60,000 is also exempt from Alabama tax.

Property Taxes
Persons over age 65 may have all or a significant portion of their property (ad valorem) tax on homestead waived on request. The state tax rate is 6.5 mills (.0065) for both real and personal property. Blount County tax rate is 32.5 mills. City mill rates vary with the maximum millage at 46 mills in Oneonta. "Real property" refers to land and all things attached to it and "personal property" refers to such property as automobiles, motor homes, and all property other than real property that is used for business purposes. Home appliances and furnishings in addition to personal items such as jewelry, etc. are not subject to Alabama property taxes. Real and personal property is assessed on a ratio formula based on the use of the property. As a homeowner over the age of 65, you are totally exempt from all state ad valorem taxes. If your annual adjusted gross income is less than $12,000 or you are retired due to a disability or blindness, you are entitled to an exemption of up to $5000 of assessed value for county tax. If you are totally disabled or have a federally adjusted net taxable income of $7500 or less (spouse's income included), you are exempt from all state, county. and city ad valorem tax on the homeowner's principal residence and any property surrounding the homestead up to 160 acres. Alabama has no real estate transfer tax.

Retirement homes, land, communities, properties. since April 22, 98
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