Best Places to Retire in Alabama for Taxes
Quick answer
The most tax friendly places to retire in Alabama in 2026 are Eufaula, Selma, and Anniston. Eufaula ranks first, with tax friendliness of 60. Rankings below cover 15 Alabama cities and measure state and local tax burden on retirement income, including income, property, and sales tax, using the Tax Foundation and state Departments of Revenue.
Find the most tax-friendly cities in this state for retirees, including locations with favorable local tax treatments. When choosing a retirement destination in Alabama, taxes is often a top priority. The cities below are ranked by state and local tax burden on retirement income, including income, property, and sales tax, drawn from the Tax Foundation and state Departments of Revenue and refreshed for 2026.
Source: the Tax Foundation and state Departments of Revenue. See our full methodology and data lineage →
Ranked #1 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #2 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #3 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #4 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #5 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #6 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #7 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #8 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #9 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #10 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #11 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #12 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #13 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #14 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
Ranked #15 of 15 Alabama cities for taxes, with tax friendliness of 60. Retirees choose it for established retirement community.
Tax Friendliness
60
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What is the best place to retire in Alabama for taxes?
Eufaula ranks first among Alabama retirement cities for taxes, with tax friendliness of 60. Selma and Anniston follow closely behind. Rankings use the Tax Foundation and state Departments of Revenue.
How does RetireCityIQ rank Alabama cities for taxes?
Each city is scored on state and local tax burden on retirement income, including income, property, and sales tax, sourced from the Tax Foundation and state Departments of Revenue. Cities are then ordered from highest to lowest on that metric. See our methodology page for the full scoring model and data lineage.
Which Alabama cities are covered in these taxes rankings?
These rankings cover 15 Alabama retirement cities, including Eufaula, Selma, Anniston, Cullman, Gardendale, and more. Each links to a full retirement guide with cost of living, taxes, healthcare, and climate data.