A homestead is defined as a single-family owner-occupied dwelling and the land thereto, not exceeding 160 acres. The property owner may be entitled to a homestead exemption if he or she owns a single-family residence and occupies it as their primary residence on the first day of the tax year for which they are applying.
- View the 2024 Homestead Exemption Memorandum – Federal income tax criteria
- View the 2024 Homestead Exemption Memorandum – State income tax criteria and provisions
Visit your local county office to apply for a homestead exemption. For more information regarding homesteads and Title 40-9-19 through 40-9-21, view the Code of Alabama 1975.
Exemptions
State Homestead Exemptions
| Eligibility | Assessed Value Limitation | Land Area Limitation | Income Limitation |
|---|---|---|---|
| Not age 65 or older | Not more than $4,000 | Not more than 160 acres | None |
| Age 65 and over | No maximum amount | Not more than 160 acres | None |
| Permanent & Total Disability Regardless of Age | No maximum amount | Not more than 160 acres | None |
| Blind, Regardless of Age | No maximum amount | Not more than 160 acres | None |
County Homestead Exemptions
| Eligibility | Assessed Value Limitation | Land Area Limitation | County School Tax Collected | Income Limitation |
|---|---|---|---|---|
| Not age 65 or older | *Not more than $2,000 | Not more than 160 acres | Yes | None |
| Age 65 and over | *Not more than $2,000 | Not more than 160 acres | Yes | Adjusted Gross Income of $12,000 or more (State Tax Return) |
| Age 65 and over | Not more than $5,000 | Not more than 160 acres | No | Adjusted Gross Income of $12,000 or more (State Tax Return) |
| Age 65 and over | No maximum amount | Not more than 160 acres | No | Not more than $12,000 (Combined Taxable Income-Federal Tax Return) |
| Permanent & Total Disability Regardless of Age | No maximum amount | Not more than 160 acres | No | None |
| Blind, Regardless of Age | Not more than $5,000 | Not more than 160 acres | No | None |
State, County, and City – Principal Residence Exemption Title 40-9-21
| Eligibility | Assessed Value Limitation | Land Area Limitation | County School Tax Collected | Income Limitation |
|---|---|---|---|---|
| Age 65 or older | No maximum amount | Not more than 160 acres | No | Not more than $12,000 (Combined Taxable Income-Federal Tax Return) |
| Permanent & Total Disability Regardless of Age | No maximum amount | Not more than 160 acres | No | None |
Homestead Types
| Homestead Type | ACT 2013-295 (View 2013 Homestead Exemption Act memorandum) |
|---|---|
| H-1 | Taxpayers under age 65 and who are not disabled–$4,000 assessed value state and $2,000 assessed value county. |
| H-2 | Taxpayers age 65 and older with an annual adjusted gross income of less than $12,000 as reflected on the most recent state income tax return or some other appropriate evidence, OR who are retired due to permanent and total disability (regardless of age)–exempt from all of the state portion of the property taxes and $5,000 of assessed value on the county portion of the ad valorem taxes, including school district ad valorem taxes. |
| H-3 (Age 65 and older) | Taxpayers age 65 and older with net taxable income of $12,000 or less on the combined (taxpayer and spouse) Federal Income Tax Return – exempt from all ad valorem taxes. |
| H-3 (Disabled) | Taxpayer is permanently and totally disabled – exempt from all ad valorem taxes. There is no income limitation. |
| H-4 | Taxpayer age 65 and older with income greater than $12,000 on their most recent Alabama Income Tax Return–exempt from all of the state portion of the ad valorem taxes and receive the regular homestead exemption ($2,000 assessed value) on county taxes. |
Physician’s Affidavit
This affidavit is used by physicians to verify taxpayer’s permanent and total disability.