AL · Flat dollar exemption
Alabama homestead exemption
Yes.
- Main exemption
- $4,000 off assessed valueState portion of property taxes ($4,000); county portion gets $2,000
- Filing deadline
- Not in our data
- Own and live there by
- Not in our data
- Renewal
- Not in our data
- Where to file
- Local county office (revenue commissioner, tax assessor or probate judge, depending on county)
Yes. Alabama's regular homestead exemption (H-1) takes $4,000 off assessed value for state taxes and $2,000 off for county taxes; local taxing authorities may grant up to $4,000. Owners 65+ and permanently disabled owners get much larger breaks, up to a full exemption. Apply at your local county office.
Last verified · Sources
How much the Alabama exemption is worth
H-1 homesteads (owners under 65 and not disabled) get $4,000 of assessed value exempt for state taxes and $2,000 for county taxes. Counties, cities or other taxing authorities may grant up to $4,000 of assessed value.
$4,000 off assessed value · applies to state portion of property taxes ($4,000); county portion gets $2,000 · source
Assessment cap: 7% a year
Since the October 1, 2024 base year, the yearly increase in taxable assessed value of Class III property, including owner-occupied homes, is capped at 7%. The cap is removed after a change of ownership, a reclassification or a significant improvement. Source.
Who qualifies
- You own a single-family home and occupy it as your primary residence
- You lived there on the first day of the tax year you apply for
- Covers the home and up to 160 acres of land
Deadline and renewal
The statewide filing deadline is not in our data. Your local assessor sets or publishes it.
Extra breaks for seniors, veterans and disabled owners
| Who | Program | Amount | Details |
|---|---|---|---|
| Seniors | H-2: age 65+ with AGI under $12,000 | $5,000 off assessed value | Owners 65 or older with Alabama adjusted gross income under $12,000 pay none of the state portion and get $5,000 of assessed value off county taxes, including school taxes. Source |
| Seniors | H-3: age 65+ with taxable income of $12,000 or less | Not in our data | Owners 65 or older with combined federal net taxable income of $12,000 or less are exempt from all property taxes on the homestead. Source |
| Seniors | H-4: age 65+ with income over $12,000 | $2,000 off assessed value | Owners 65 or older with income over $12,000 pay none of the state portion and get the regular $2,000 off county taxes. Source |
| Disabled owners | H-3: permanently and totally disabled | Not in our data | Owners who are permanently and totally disabled, at any age, are exempt from all property taxes on the homestead with no income limit. A physician's affidavit verifies the disability. Source |
| Disabled owners | Blind owners | $5,000 off assessed value | Blind owners of any age get up to $5,000 of assessed value off county taxes. Source |
Law: Code of Ala. §§40-9-19 to 40-9-21
Alabama county guides
County guides for Alabama are not published yet. File with: Local county office (revenue commissioner, tax assessor or probate judge, depending on county).
Frequently asked questions
Do seniors in Alabama pay property tax?
Owners 65 and older pay no state portion. Those with $12,000 or less in federal taxable income pay no property tax at all on the homestead.
Does Alabama cap property tax increases?
Yes. Since 2024, taxable assessed value on homes can rise no more than 7% a year until the home sells or is significantly improved.
Sources
- Homestead Exemptions · Alabama Department of Revenue
- 7% Cap Information – HB73 (Act 2024-344) · Alabama Department of Revenue
Last verified
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