AL estate risk
Tax exposure in Alabama
State estate or inheritance tax rules and how they interact with federal thresholds.
Alabama does not impose a state estate or inheritance tax.
At a glance
Key takeaways
- No state estate or inheritance tax.
- Federal estate tax may apply based on estate size.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Questions to consider
Questions to consider in Alabama
- Does the state impose an estate or inheritance tax?
- Who is exempt or receives preferential treatment?
- How does federal tax interact with state rules?
State overview
Alabama does not impose a state estate or inheritance tax.
- No state estate or inheritance tax.
- Federal estate tax may apply based on estate size.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Sources
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
- https://legalclarity.org/which-states-have-an-estate-or-inheritance-tax/
- https://www.law.cornell.edu/wex/inheritance_tax
Background sources
- IRS inflation adjustments for tax year 2026
Use for the current federal estate tax basic exclusion amount.
- IRS Instructions for Form 706 (United States Estate Tax Return)
Defines filing requirements and federal estate tax framework.
- Tax Foundation - State estate and inheritance taxes
Current list of states with estate or inheritance taxes.
National sources provide baseline context; state statutes and court rules control in Alabama.
Optional next steps
Continue with related estate-risk context
Educational resources only. No forms and no legal advice.
Understand death-risk context for Alabama
LifeRiskIQ gives broader mortality context that can help frame when estate planning becomes more urgent.
Understand retirement-risk context for Alabama
RetirementRiskIQ explains how asset growth and longevity can increase estate complexity over time.
Review federal estate tax basics
IRS guidance on federal estate tax thresholds, filings, and definitions.