Homestead Exemptions

NOTE: All of the exemptions below are available on primary residence only. Applicant cannot have homestead on another home anywhere else.

Regular Homestead

  • Based on a 10% assessed value rather than a 20% value
  • Must be occupied by person(s) who name appear(s) on the deed
  • Must live in the house on October 1st of the year claimed
  • Must file between October 1st and December 31st of the year purchased.
  • Must refile claim if any changes are made to deed or changes are made in occupancy of residence.
  • Additions or modifications to any structures located on property must also be reported.

Exemptions for persons over 65 or permanently & totally disabled

Act 48 - Total Exemption

The taxpayer is either:

  • Age 65 and older and have combined net federal taxable income of the taxpayer and his or her spouse on their latest United States Tax Return of $12,000 or less.
  • Retired because of permanent and total disability and the combined net taxable income of the taxpayer and his or her spouse on their latest United States Tax Return is $12,000 or less.
    • 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 governmental agency; or, the written certification of the taxpayer being retired because of total and permanent disability from two unassociated physicians licensed to practice medicine in Alabama.
  • Must be occupied by person(s) who name(s) appear(s) on the deed.
  • Age, and disability based exemptions must be evidenced by Federal Income Tax Return for the current year or a signed affidavit provided by Revenue Commissioner.
  • Line numbers on Federal Income Tax Return, which are used to determine eligibility, is 1040A - Line 1040
  • Act 48 must be verified annually either in person or by mail
  • Federal Income Tax Return MUST be a copy of the original, signed document, which was mailed to the Internal Revenue Service. Work sheet copies are not allowed.

Act 91 Homestead

  • Age 65 or older, retired due to total and permanent disability or permanently blind.
  • This homestead provides and exemption not to exceed $5,000.00 in assessed value
  • Based on age or disability status, and net ADJUSTED INCOME of the taxpayer and his or her spouse.
  • Total Adjusted Gross Income may not exceed $12,000.00.
  • Age, and disability based exemptions must be evidenced by copies of the State of Alabama tax return for the current year or a signed affidavit provided by Revenue Commissioner.
  • Proof of the taxpayer being retired because of permanent and total disability may include the receipt of a pension or annuity due to disability from a private company or a state or federal governmental agency; or, the written certification of the taxpayer being retired because of total and permanent disability from two unassociated physicians licensed to practice medicine in Alabama.
  • Must be occupied by person(s) who name(s) appear(s) on the deed.
  • Line numbers on State of Alabama Tax Return, which are used to determine eligibility, are listed below.
  • There are two Alabama Resident Individual State Income Tax Returns. The $12,000 limitation should be verified from the applicable return as follows:
    • Form 40A - Total income Line Z
    • Form 40 - Total adjusted gross income from Line 10
    • From 40EZ - Income from W2's from Line 3

Act 91B Homestead

  • Exempt only on state portion of property taxes
  • Age 65 or older is only required qualification
  • Must be occupied by person(s) who name(s) appear(s) on the deed