Homestead Exemption

A homestead exemption is a tax break which a property owner may be entitled, 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. The following are four types of homestead exemptions:

Homestead Exemption 1


Homestead Exemption 1 is available to all residents of Alabama who own and occupy a single-family residence, including mobile homes, as their home and use this property for no other purposes. The exemption is up to $4,000 in assessed value for state taxes and up to $2,000 in assessed value for county taxes.

Homestead Exemption 2


Homestead Exemption 2 is for residents of Alabama 65 years of age or older with an annual adjusted gross income of less than $12,000 as reflected on the most recent State Income Tax Return. The exemption is for the total assessed value of state taxes and up to $5,000 in assessed value on their principal residence and 160 acres adjacent thereto for county taxes.

Homestead Exemption 3


Homestead Exemption 3 is for residents of Alabama 65 years of age or older with net taxable income of the combined taxpayer and spouse of $12,000 or less on their most recent Federal Income Tax Return. Residents who are permanently and totally disabled, regardless of income, are entitled to this exemption also. Those who qualify are exempt from taxes on their principal residence and 160 acres adjacent thereto.

Homestead Exemption 4


Homestead Exemption 4 is for residents of Alabama 65 years of age or older regardless of income. The exemption is for the total assessed value of state taxes and up to $2,000 in assessed value for county taxes. 

Requirements for Exemptions


Proof of age is required and may be established by a driver's license, birth certificate, insurance forms, church records, school records, etc.

Proof of the taxpayer being retired because of total and permanent disability may include the receipt of a pension or annuity due to disability from a private company or a state or federal government agency; or, the written certification of the taxpayer being retired because of total and permanent disability from two physicians licensed to practice medicine in Alabama. People who are disabled may receive service without coming to the courthouse by calling 256-351-4690.