📈 Investment & Retirement Calculators Alabama

Alabama Retirement Calculator

Plan your retirement in Alabama. Factor in lower cost of living and state income tax. Free calculator.

Free — No Sign-up Verified Data Editorially Reviewed Updated Feb 2026

Alabama Quick Facts

5.0% Income Tax Rate

0.41% Property Tax Rate

$56,929 Median Income

88.1 Cost of Living

How This Calculator Works

Calculation methodology and assumptions

Retirement planning for Alabama. Alabama taxes retirement income at rates up to 5%. Cost of living index: 88.1 (100 = national avg). Desired income is pre-filled based on 80% of Alabama's median household income, adjusted for local costs. Uses compound growth with 4% safe withdrawal rate.

Key State Information

Retiring in Alabama: Alabama taxes retirement income at rates up to 5%. Cost of living: 88.1/100. Property tax: 0.41%. Median home: $210,000. Average home insurance: $2,320/yr.

Standard financial formulas Pre-filled with real state data Estimates only — not financial advice

Data Source

Census Bureau, Tax Foundation, SSA

View Original Source | Verified 2024-12-01 | Updated annually

Frequently Asked Questions

Is Alabama a good state to retire in?

Alabama's state income tax of up to 5% may reduce retirement income significantly. Cost of living is below average (very affordable!). Median home price: $210,000.

How much do I need to retire in Alabama?

Using the 4% rule, to generate $3,795/month (80% of Alabama median income) you'd need approximately $1,138,580 saved. Adjust up or down based on your lifestyle and housing costs.