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.