Alabama Homestead Exemption and Property Tax Relief

Program overview

• A homestead is a single-family owner-occupied dwelling and the land thereto, not exceeding 160 acres.
• A property owner may be entitled to a homestead exemption if they own a single-family residence and occupy it as their primary residence on the first day of the tax year for which they are applying.
• Visit your local county office to apply for a homestead exemption.
• The Alabama Department of Revenue references:
  • 2025 Homestead Exemption Memorandum – Federal income tax criteria
  • 2025 Homestead Exemption Memorandum – State income tax criteria and provisions
  • Code of Alabama 1975, Title 40-9-19 through 40-9-21

Eligibility pathway (who can apply)

• Ownership and occupancy: Own and occupy a single-family residence as your primary residence on the first day of the tax year.
• Land area limitation: Up to 160 acres.
• Age/disability categories and income criteria (as stated):
  • Under age 65 (H-1): Eligible for state exemption up to $4,000 in assessed value and county exemption up to $2,000; no income limit.
  • Age 65+ with combined net taxable income of $12,000 or less on the combined Federal income tax return (H-3, age 65): Exempt from all ad valorem taxes.
  • Permanently and totally disabled (any age) (H-3, disabled): Exempt from all ad valorem taxes; no income limit.
  • Age 65+ with annual adjusted gross income less than $12,000 on the Alabama state income tax return, OR retired due to permanent and total disability (regardless of age) (H-2): Exempt from the state portion; $5,000 of assessed value exempt on the county portion (including school district ad valorem taxes).
  • Age 65+ with income greater than $12,000 on the most recent Alabama income tax return (H-4): Exempt from the state portion; receives the regular county homestead exemption ($2,000 assessed value).
  • Blind, regardless of age: State portion shows no maximum assessed value; county portion exempts $5,000 of assessed value and county school tax is not collected.

Benefit structure (as presented on the source page)

• State Homestead Exemptions:

  • Not age 65 or older: Not more than $4,000 (assessed value); land area not more than 160 acres; no income limitation.
  • Age 65 and over: No maximum amount (assessed value); land area not more than 160 acres; no income limitation.
  • Permanent & total disability, regardless of age: No maximum amount (assessed value); land area not more than 160 acres; no income limitation.
  • Blind, regardless of age: No maximum amount (assessed value); land area not more than 160 acres; no income limitation.

• County Homestead Exemptions:

  • Not age 65 or older: Not more than $2,000 (assessed value); land area not more than 160 acres; county school tax collected; no income limitation.
  • Age 65 and over: Multiple configurations are shown on the page, including entries referencing adjusted gross income thresholds on the State tax return and a configuration with no maximum amount tied to “not more than $12,000 (combined taxable income – Federal tax return).” See “Validation notes” below.
  • Permanent & total disability, regardless of age: No maximum amount (assessed value); land area not more than 160 acres; county school tax not collected; no income limitation.
  • Blind, regardless of age: Not more than $5,000 (assessed value); land area not more than 160 acres; county school tax not collected; no income limitation.
  • Note: The page states that counties, municipalities, or other taxing authorities may grant a homestead exemption up to $4,000 in assessed value.

• State, County, and City – Principal Residence Exemption (Title 40-9-21):

  • Age 65 or older: No maximum amount (assessed value); land area not more than 160 acres; county school tax not collected; income limitation “Not more than $12,000 (Combined Taxable Income – Federal Tax Return).”
  • Permanent & total disability, regardless of age: No maximum amount (assessed value); land area not more than 160 acres; county school tax not collected; no income limitation.

• Homestead types (Act 2013-295):

  • H-1: Taxpayers under age 65 and not disabled – $4,000 assessed value (state) and $2,000 assessed value (county).
  • H-2: Taxpayers age 65+ with annual adjusted gross income of less than $12,000 on the most recent Alabama state income tax return OR retired due to permanent and total disability (regardless of age) – exempt from all of the state portion; $5,000 of assessed value on the county portion, including school district ad valorem taxes.
  • H-3 (Age 65 and older): Taxpayers age 65+ with net taxable income of $12,000 or less on the combined Federal income tax return – exempt from all ad valorem taxes.
  • H-3 (Disabled): Permanently and totally disabled – exempt from all ad valorem taxes; no income limitation.
  • H-4: Taxpayers age 65+ with income greater than $12,000 on their most recent Alabama income tax return – exempt from all of the state portion and receive the regular homestead exemption ($2,000 assessed value) on county taxes.

Application guidance

• How to apply: Visit your local county office to apply for a homestead exemption.
• Disability verification: A Physician’s Affidavit is used by physicians to verify a taxpayer’s permanent and total disability.
• Reference materials: The page directs applicants to the Code of Alabama 1975 (Title 40-9-19 through 40-9-21) and to 2025 memoranda for detailed income criteria.

Key requirements and compliance

• Primary residence and timing: You must occupy the property as your primary residence on the first day of the tax year.
• Land area limit: Up to 160 acres may be treated as the homestead.
• Income criteria: Specific thresholds referenced include $12,000 on the combined Federal income tax return (net taxable income) and $12,000 on the Alabama state income tax return (adjusted gross income), which tie to certain H-type exemptions.
• County school tax: For some exemptions (including certain age/disability configurations and blindness), the page indicates county school tax is not collected.

Validation notes and warnings

• Application deadline: The crawled text does not provide a filing window or specific deadline. It only instructs applicants to visit their local county office. Any previously stated dates have been removed pending confirmation.
• Income criteria presentation: The “County Homestead Exemptions” table on the page shows multiple rows for “Age 65 and over,” including entries referencing “Adjusted Gross Income of $12,000 or more (State Tax Return)” and differing assessed value limitations. This appears potentially ambiguous without the full table formatting. The H-type descriptions and the 2025 memoranda (Federal and State income tax criteria) should be consulted for authoritative guidance.
• Blindness category: The page lists “Blind, Regardless of Age” with specific state and county treatment. This category is included here exactly as presented.
• Veterans: The crawled text does not reference veteran-specific exemptions; any prior references have been removed in this update.
• Links: The crawled text references 2025 memoranda but did not include clickable URLs in the excerpt provided.

Missing or unclear information

• No explicit filing deadline or renewal details are provided in the crawled text.
• No county-by-county procedures or forms are detailed beyond the instruction to visit the local county office.

Resources (as cited on the page)

• Code of Alabama 1975: Title 40-9-19 through 40-9-21.
• 2025 Homestead Exemption Memorandum – Federal income tax criteria.
• 2025 Homestead Exemption Memorandum – State income tax criteria and provisions.
• Local county office (application intake).