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 citizens 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 amount of the exemption is up to $4,000.00 in assessed value for state taxes and up to $2,000.00 in assessed value for county taxes.
Homestead Exemption 2
Homestead Exemption 2 is for residents of this state who are blind regardless of age or whether such person is retired. This exemption is for the total assessed value of state taxes and up to $5000.00 in assessed value for county taxes.
Homestead Exemption 3
Homestead Exemption 3 is for persons over age 65 and older; or who are retired because of permanent and total disability and the combined net taxable income of the taxpayer and his or her spouse on their latest Federal Income Tax Return is $12,000 or less. Those who qualify are totally exempt from taxes on their principal residence and 160 acres adjacent thereto.
Homestead Exemption 4
Homestead Exemption 4 is for persons age 65 and older; or, who are retired because of permanent and total disability regardless of income. This exemption is for the total assessed value of state taxes and up to $2000.00 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.