Homestead Exemptions

A homestead exemption is a tax break you may qualify for if you own a single-family residence and occupy it as your primary residence on October 1 (the first day of the tax year). Homestead exemptions are not automatic—you must request one at the Revenue Commission Office.

H1 — Standard

Available to Alabama homeowners who own and occupy a single-family residence (including manufactured homes) as their primary residence and use it for no other purpose.

  • $4,000 of assessed value exempt from State taxes
  • $2,000 of assessed value exempt from County taxes

H2 — Age 65 (Income-Limited)

For owners 65+ with adjusted gross income on the most recent Alabama return of $12,000 or less and federal taxable income over $12,000.

Must be renewed each year.

H3 — 65+ or Permanently & Totally Disabled

For owners who occupy their primary residence and are either:

  • 65+ with combined taxable income ≤ $12,000 on the most recent federal return, or
  • Retired due to permanent and total disability.

Exempts from all ad valorem taxes.

Disability must be verified by VA/SSA award letters, proof of disability income, Medicare card, or two official Alabama Department of Revenue Physician’s Affidavits (one from the treating physician).

H4 — 65+ (No Income Limit)

For owners 65+ who occupy their primary residence and use it for no other purpose.

  • State portion: exempt
  • County portion: $2,000 of assessed value exempt

Apply by December 31 each year based on status as of October 1. Once you receive an age/disability exemption, you must claim it annually; the office mails a reminder, but it’s the owner’s responsibility to ensure the claim is made. H2/H3/H4 must be removed if not re-claimed each year.