Alabama Veteran Benefits
Complete guide to state benefits for Alabama veterans in 2026
Alabama Tax Advantage
Alabama fully exempts military retirement pay from state income tax! VA disability compensation is also tax-free under federal law.
Alabama Veteran Benefits Summary: Alabama offers full military retirement exemption, property tax exemptions for 100% disabled veterans (full exemption), the GI Dependent Scholarship for dependents, and free hunting/fishing licenses for disabled veterans. Alabama has approximately 350,000 veterans.
State Income Tax
Military retirement: Fully exempt
VA disability: Tax-free (federal law)
Property Tax Exemptions
- 100% disabled: Full exemption
- Surviving spouse: May continue exemption
Education Benefits
- GI Dependent Scholarship: Free tuition for dependents of 100% disabled/deceased veterans
- In-state tuition: For all veterans
Recreation Benefits
- Free hunting/fishing: For 100% disabled
- State parks: Discounts available
2026 BAH Rates for Alabama Bases
| Installation | E-5 w/Dep |
|---|---|
| Redstone Arsenal | $1,563 |
| Maxwell AFB | $1,392 |
| Mobile | $1,476 |