Updated October 5, 2026. Quick answer: No. Alabama has no inheritance tax for a death in 2026. The Department of Revenue says that under the Alabama Estate and Inheritance Tax, estates of decedents who died after December 31, 2004 “are not required to file with Alabama”.
Alabama inheritance tax at a glance
| Item | What the documents say |
|---|---|
| State inheritance tax | None |
| What the documents say | The Department of Revenue’s page on the Alabama Estate and Inheritance Tax (Title 40, Chapter 15) says no filing is required for deaths after December 31, 2004 |
| State estate tax | None: the Department of Revenue says estates of decedents dying after December 31, 2004 are not required to file with Alabama |
| Source | Alabama Department of Revenue; IRS Revenue Procedure 2025-32 |
What the Alabama documents say
The Department of Revenue’s page on the Alabama Fiduciary, Estate, and Inheritance Tax says the “Estate and Inheritance Tax is established by Title 40 Chapter 15”. It says Alabama’s filing requirement is based on the federal estate tax credit, and that estates where the decedent died after December 31, 2004 “are not required to file with Alabama”.
The Department’s 2005 news release says Alabama estate tax returns, affidavits and waivers are “no longer required to be filed for estates whose owners died” after December 31, 2004, after the “final phase-out of the credit effective Jan. 1, 2005”.
What an heir in Alabama still faces
The federal estate tax is paid by the estate, with a 2026 basic exclusion amount of “$15,000,000 for calendar year 2026”. Alabama’s filing requirement followed the federal credit, and the Department says estates of decedents who died after December 31, 2004 “are not required to file with Alabama”. CMG’s Alabama estate tax page covers it.
An heir’s basis under 26 U.S.C. 1014(a) is generally the value at “the date of the decedent’s death”. Inherited retirement money is an income tax question: see Alabama 401(k) and IRA withdrawals and the inherited IRA RMD calculator.
How current the Alabama documents are
Read on October 5, 2026: Alabama Fiduciary, Estate, and Inheritance Tax (Alabama Department of Revenue, dated 2026); Reminder: Alabama Estate Tax Filings No Longer Required (News Release) (Alabama Department of Revenue, dated 2005).
What the documents do not say
- No Alabama document read says “Alabama has no inheritance tax” in so many words, and none gives a repeal year. The Department’s page names the Estate and Inheritance Tax together and says no filing is required for deaths after December 31, 2004. Read the Department’s page itself before relying on this for an unusual transfer.
Common mistakes
- Looking for an Alabama estate tax waiver or return for a recent death; the Department says estates of decedents dying after December 31, 2004 are not required to file.
Related: inheritance tax by state, Alabama estate tax, Alabama probate cost, and how Alabama taxes 401(k) and IRA withdrawals.
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Answer againSources
- Alabama Fiduciary, Estate, and Inheritance Tax: https://www.revenue.alabama.gov/individual-corporate/alabama-estate-and-inheritance-tax/
- Reminder: Alabama Estate Tax Filings No Longer Required (News Release): https://revenue.alabama.gov/wp-content/uploads/2017/05/ICTAXEstate05.pdf
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- 26 U.S.C. 1014 Basis of property acquired from a decedent (U.S. Code, 2023 edition, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title26/html/USCODE-2023-title26-subtitleA-chap1-subchapO-partII-sec1014.htm
General information, not tax advice; the state agency or a tax professional can confirm anything consequential. Documents read October 5, 2026.