Alabama’s historic budget surplus means rebates for millions of state taxpayers.

One-time tax rebates will be sent to approximately 1.9 million taxpayers. The amount of each rebate is based on the qualified taxpayer’s status: $150 or single, head of family and married filing separately or $300 for married filing jointly.

The Alabama Department of Revenue will start issuing rebates beginning Dec. 1.

“Our country is in the midst of tough times, and Alabama families from all walks of life are unfortunately seeing that their paychecks aren’t going as far as they once did,” Gov. Kay Ivey said. “Thanks to our unwavering commitment to fiscal responsibility, one-time tax rebates will be with our hard-working Alabamians in time for the holidays.”

To qualify for the rebates, taxpayers must have filed a 2021 Individual Income Tax return which ALDOR received on or before Octo. 17, 2022. Non-residents, estates or trusts or anyone who was claimed as a dependent during the 2021 tax year do not qualify.

Taxpayers can expect to receive their rebate based on how they got their 2021 tax year refund – by direct deposit or paper check. If you didn’t receive a refund in tax year 2021, you can expect a paper check.

The rebates will not be taxable for Alabama income tax purposes.