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Homestead Exemptions

  • Homestead Exemptions

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 2013 Homestead Exemption Act memorandum.

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

EligibilityAssessed Value LimitationLand Area LimitationIncome Limitation
Not age 65 or older Not more than $4,000Not more than 160 acresNone
Age 65 and overNo maximum amountNot more than 160 acresNone
Permanent & Total Disability Regardless of AgeNo maximum amountNot more than 160 acresNone
Blind, Regardless of AgeNo maximum amountNot more than 160 acresNone

County Homestead Exemptions

EligibilityAssessed Value LimitationLand Area LimitationCounty School Tax CollectedIncome Limitation
Not age 65 or older*Not more than $2,000Not more than 160 acresYesNone
Age 65 and over*Not more than $2,000Not more than 160 acresYesAdjusted Gross Income of $12,000 or more (State Tax Return)
Age 65 and overNot more than $5,000Not more than 160 acresNoAdjusted Gross Income of $12,000 or more (State Tax Return)
Age 65 and overNo maximum amountNot more than 160 acresNoNot more than $12,000 (Combined Taxable Income-Federal Tax Return)
Permanent & Total Disability Regardless of AgeNo maximum amountNot more than 160 acresNoNone
Blind, Regardless of AgeNot more than $5,000Not more than 160 acresNoNone
*The Counties, Municipalities, or other taxing authority may grant a Homestead Exemption up to $4,000 in assessed value.

State, County, & City – Principle Residence Exemption Title 40-9-21

EligibilityAssessed Value LimitationLand Area LimitationCounty School Tax CollectedIncome Limitation
Age 65 or olderNo maximum amount*Not more than 160 acresNoNot more than $12,000 (Combined Taxable Income-Federal Tax Return)
Permanent & Total Disability Regardless of AgeNo maximum amountNot more than 160 acresNoNone

*The counties, municipalities, or other taxing authority may grant a Homestead Exemption up to $4,000 in assessed value.

Homestead Types

Homestead TypeACT 2013-295   (View 2013 Homestead Exemption Act memorandum)
H-1Taxpayers under age 65 and who are not disabled–$4,000 assessed value state and $2,000 assessed value county.
H-2Taxpayers 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-4Taxpayer 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.

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