Roth conversion taxes in Alabama (2026)
By Mario Bailey · Published · Last reviewed
Alabama taxes Roth conversions as ordinary income at graduated rates up to 5%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed Alabama tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $1,510 | $4,010 | $2,500 | 5.0% |
| Single | $80,000 | $3,510 | $6,010 | $2,500 | 5.0% |
| Single | $150,000 | $7,010 | $9,510 | $2,500 | 5.0% |
| Married filing jointly | $40,000 | $895 | $3,395 | $2,500 | 5.0% |
| Married filing jointly | $80,000 | $2,895 | $5,395 | $2,500 | 5.0% |
| Married filing jointly | $150,000 | $6,395 | $8,895 | $2,500 | 5.0% |
Social Security and retirement income
Alabama does not tax Social Security benefits. A conversion can still raise the federally taxable share of your benefits through the provisional income formula. Alabama also excludes up to $6,000 of retirement income for filers age 65 and over, which can shelter part of a conversion depending on how the state defines eligible retirement income.
Alabama standard deduction phases down with income per Standard Deduction Chart 40. This file uses the maximum deduction amounts for each filing status, which slightly understates tax for higher-income filers. SS is fully exempt. Defined-contribution distributions (401k/IRA, including Roth conversions) are taxable except the first $6,000 per person at 65+ (Act 2022-297); modeled per person for MFJ when both spouses are 65+. Defined-benefit pension income is fully exempt in statute but not modeled (engine cannot distinguish pension source), so DB pensioners see overstated AL tax.
FAQ
Does Alabama tax Roth conversions?
Yes. Alabama taxes Roth conversions as ordinary income at graduated rates up to 5%. Federal tax applies on top.
Does Alabama tax Social Security benefits?
No. Social Security benefits are not subject to Alabama income tax.
What is the top Alabama rate on a conversion in 2026?
5% at the highest marginal rate.
Model your Alabama conversion in the calculator
Rate data source: Alabama Department of Revenue, Individual Income Tax (revenue.alabama.gov); Standard Deduction Chart 40; Title 40-18-19 (retirement income exemption)