Updated January 2026
Alabama Veteran Benefits 2026
Alabama offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in AL for 2026.
Alabama Highlights
- Full military retirement pay tax exemption
- 100% property tax exemption for P&T veterans
- Free hunting and fishing licenses
- State veterans homes with nursing care
Income Tax Treatment
Alabama has a state income tax.
Military Retirement Pay: Alabama fully exempts military retirement pay from state income tax.
Active Duty Pay: Active duty pay is not taxed by Alabama.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Alabama does not tax VA disability payments.
Property Tax Exemption for Veterans
100% P&T veterans receive full property tax exemption on homestead. Surviving spouses also eligible.
Maximum Benefit: Full exemption for 100% P&T
To apply for property tax exemptions in Alabama, contact your county assessor's office or the Alabama Department of Veterans Affairs. You will typically need your VA disability rating letter and proof of residence.
VA Healthcare in Alabama
Alabama has approximately 3 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.