Alabama Homestead Exemption: Amounts, Deadline and How to Apply

Alabama's homestead exemption lowers property tax on an owner-occupied home by a set amount of assessed value, and how much it takes off depends on your age, income and disability. The basic exemption (class H-1) removes $4,000 of assessed value from state taxes and $2,000 from most county taxes under Ala. Code 40-9-19. Homeowners 65 or older pay no state property tax, and low-income seniors and permanently and totally disabled owners can be exempt from all property taxes on their principal residence under Ala. Code 40-9-21. You apply to your county tax assessor or revenue commissioner; it is not automatic. For other states, see our guide to homestead exemptions by state.

Information last verified on October 8, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Alabama's property-tax homestead exemptions (Ala. Code 40-9-19, 40-9-21 and 40-9-21.1, and Alabama Department of Revenue Rule 810-4-1-.23), the 7% assessed-value cap (Act 2024-344), the 2026 change for disabled veterans (Act 2026-598, HB155), and the separate creditor homestead in Ala. Code 6-10-2. It does not cover county or city exemptions beyond what is stated here, current use valuation for farm or timber land, business property, or the law of other states.

How much is the Alabama homestead exemption?

Alabama has four homestead classes. ADOR's homestead page summarizes the first: "H-1: Taxpayers under age 65 and who are not disabled-$4,000 assessed value state and $2,000 assessed value county." The others raise the exemption for older, lower-income, disabled and blind owners.

All amounts are stated in assessed value, the figure your tax is calculated on, not in your home's market value. Your county assessor's notice shows your home's assessed value.

Under ADOR Rule 810-4-1-.23, homesteads of residents "who are not 65 years of age or older are exempt from county levied property taxes, except countywide and school district property taxes levied for school purposes, not to exceed $2,000 in assessed value." For homesteads of residents "not over 65 years of age", a county, city or other local taxing authority can grant an additional exemption on its own levies, but the total of all homestead exemptions on any one levy cannot exceed $4,000 of assessed value (Ala. Code 40-9-19(c)). Ask your county whether a local exemption applies.

Who qualifies for each class

Every class requires an owner-occupied home. The rule describes the property as "a single family, owner occupied residential dwelling and the land thereto, not exceeding 160 acres." You must own it as of the October 1 lien date. Each person or head of family gets one exemption, and a joint owner receives the full exemption rather than a partial one.

H-2. Under the rule, the larger county exemption goes to "homesteads of residents of this state 65 years of age or older who have an annual adjusted gross income of less than $12,000 as reflected on the most recent state income tax return or some other appropriate evidence, or who are retired due to permanent and total disability, regardless of age, or who are blind." These owners are "exempt from all state levied property taxes" and "exempt from county levied property taxes, including property taxes levied for school districts, not to exceed $5,000 in assessed value."

H-3. Ala. Code 40-9-21 covers owners 65 or older whose net annual taxable income, on the latest federal return of the taxpayer and spouse, is $12,000 or less (or who give an affidavit if not required to file). It also covers disability at any age: "The principal residence of any taxpayer in this state who is permanently and totally disabled regardless of age or income is exempt from all property taxes levied by the state, any county or any municipality." The statute adds: "In order to qualify for exemption under this section, the property must be a single-family home owned and occupied during the tax year as the principal residence of the person qualifying under this section." Up to 160 adjacent acres are included, and you must furnish proof of age when claiming on age.

H-4. ADOR describes it as covering a "Taxpayer age 65 and older with income greater than $12,000 on their most recent Alabama Income Tax Return-exempt from all of the state portion of the ad valorem taxes and receive the regular homestead exemption ($2,000 assessed value) on county taxes." ADOR's FAQ for seniors puts it plainly: "you are exempt from the state portion of property tax ... county taxes may still be due."

Proving disability. You can show permanent and total disability with a disability pension or annuity, or with a physician's certification. ADOR's rule states that "Alabama Department of Revenue Form PT-PA-1 must be used when providing a physician's written certification." The form is signed by two Alabama physicians, one of whom must be actively treating you. Blindness is defined in Ala. Code 1-1-3.

How and when to apply

Apply in your county, not with the state. The rule states that "the owner of any homestead property as of the October 1 lien date must successfully apply for the exemption and submit all supporting documentation to the local tax assessing official in the county where their homestead property is located." Depending on the county, that office is the tax assessor or the revenue commissioner, and it supplies the form affidavit. ADOR does not publish a single statewide form number for the basic exemption.

ADOR's rule sets the filing window: "Application may be made between October 1 and December 31 for the exemption to be applied for the current year or application may be made at any time during the year for the exemption to be applied for the following year." A separate statute, Ala. Code 40-7-2.1(b), as quoted in the 2026 HB155 enrolled bill, allows county assessors to accept homestead applications from January 1 through September 30, effective the following October 1. Because the rule and the statute describe the window differently, confirm your county's dates before you file.

To look up your parcel and the county office that holds it, see Alabama property records.

Renewing: yearly verification

The exemptions for owners 65 or older, disabled or blind do not have to be reclaimed each year, but they do have to be confirmed. Under Ala. Code 40-9-21.1, these owners "shall not be required to annually claim the exemptions after the initial qualification, but shall verify eligibility for the exemptions" each year, by mail, in person or electronically. For H-3, the rule says an owner "shall after the initial qualification be allowed to verify such eligibility each year by mail on a form affidavit provided by the county assessing official."

ADOR's rule does not say whether the basic H-1 exemption for owners under 65 has to be renewed. Ask your county assessing official.

Disabled veterans (Act 2026-598). HB155 of the 2026 regular session was enacted as Act 2026-598 and took effect October 1, 2026 (Section 3 of the act). It provides that a qualifying owner who is "a veteran of the United States Armed Forces who has been determined to be permanently and totally disabled by the United States Department of Veterans Affairs" "shall not be required to annually claim the exemption nor verify eligibility for the exemption after the initial qualification." It applies to veterans who qualify under Ala. Code 40-9-19(d) or 40-9-21, and the release ends on the veteran's death or a move to a new homestead. Ask your county how it applies to your next verification.

The 7% cap on assessed value increases

Alabama now limits how fast taxable assessed value can rise. Under HB73 (Act 2024-344), the yearly increase in taxable assessed value of Class II and Class III real property is capped at 7%. ADOR states: "The base year for implementing this change was effective October 1, 2024, for tax collections beginning October 1, 2025."

You do not apply for it. ADOR says: "No Application Needed - The new assessed value cap applies automatically to eligible Class II real and Class III real properties." The cap is tied to property class, not to homestead status. It does not move with you. ADOR lists events that "trigger the removal of the cap," including when "the property changed ownership," except a change between spouses or family members for no or nominal consideration, a change because of the original owner's death, or a redemption after foreclosure of a mortgage, tax sale or tax lien. The cap is also removed when "an addition has been added to the parcel, or a significant improvement has been made to the property." ADOR's 7% cap page explains which properties fall in each class.

Local school tax exemptions for seniors

Ala. Code 40-9-19.1 gives cities a local option. A municipal governing body "may, upon the request of the board of education of such municipality, grant, by resolution, an exemption in whole or in part from the increased portion of any ad valorem property tax" for school purposes, for homeowners over 65, retired due to permanent and total disability, or blind. Whether it exists depends on your city, so ask your city or county.

False claims and penalties

Alabama penalizes false homestead claims heavily. Under Ala. Code 40-9-21.2, restated in ADOR Rule 810-4-1-.23, a person who knowingly and willfully gives false information to claim an exemption, or helps someone else do so, "shall be ordered to pay twice the amount of any ad valorem tax which would have been due retroactive for a period of up to 10 years plus interest at a rate of 15 percent per annum from the date the tax would have been due." The amount is due within 30 days of a written demand, and the state can sue to collect it.

Statewide ballot measures in 2026

None of the four statewide constitutional amendments on Alabama's November 3, 2026 ballot deals with homestead exemptions or property tax, according to the Secretary of State's statewide ballot measures page. Some counties have local amendments on their own ballots; check your county's sample ballot.

Alabama's creditor homestead exemption (a different law)

The creditor homestead is a separate law from the property-tax exemption, with its own amounts measured in value, not assessed value. Ala. Code 6-10-2 protects "the homestead of every resident of this state, including improvements and appurtenances, which does not exceed 160 acres in size and is valued at no more than: (i) fifteen thousand dollars ($15,000); or (ii) fifty-six thousand four hundred dollars ($56,400) if the resident is either 62 years of age or older or an individual with a disability."

The $56,400 tier came from HB96 of the 2026 regular session, which states: "This act shall become effective on June 1, 2026." HB96 also provides that in bankruptcy the amount is governed by the law in effect on the date the petition is filed. Each joint owner may claim the exemption separately, and a mobile home used as a principal residence can qualify.

The exemption has limits. Under Ala. Code 6-10-4, it does not "prevent any lien attaching to the homestead in favor of any laborer, merchant, or materialman for work and labor done or for materials furnished, or in favor of any vendor for unpaid purchase money," and it does not defeat deeds, mortgages and liens lawfully executed. Under Ala. Code 6-10-3, "no mortgage, deed or other conveyance of the homestead by a married person shall be valid without the voluntary signature and assent of the husband or wife."

Alabama has opted out of the federal bankruptcy exemptions. Under Ala. Code 6-10-11, "there shall be exempt from the property of the estate of an individual debtor only that property and income which is exempt under the laws of the State of Alabama and under federal laws other than Subsection (d) of Section 522 of Title 11 of the United States Code." You may file a sworn declaration describing the homestead you claim as exempt with the probate judge of the county where it sits, "at any time" (Ala. Code 6-10-20); the probate office records it in a separate book (Ala. Code 6-10-21). The statute says a resident "may" file it. We have not reviewed the procedure for contesting a claim when property is levied on (Ala. Code 6-10-30 and following). For how these exemptions work in a case, see Alabama bankruptcy laws.

The probate homestead allowance

Under Ala. Code 43-8-110, "a surviving spouse of a decedent who was domiciled in this state is entitled to a homestead allowance of fifteen thousand dollars ($15,000)," or, with no spouse, $15,000 divided among minor and dependent children, plus up to $7,500 in household furniture, automobiles, furnishings, appliances and personal effects, above any security interests, under 43-8-111 (if there is no surviving spouse, the children are entitled jointly to the same value). See Alabama probate laws.

Related

• Homestead exemptions by state
• Alabama bankruptcy laws
• Alabama probate laws
• Alabama property records

This article is general legal information about Alabama law (Ala. Code 40-9-19, 40-9-21, 40-9-21.1, 40-9-21.2, 6-10-2, 6-10-4 and 6-10-20, and Alabama Department of Revenue Rule 810-4-1-.23), verified as of October 8, 2026. It is not tax or legal advice. For your situation, contact your county tax assessor or revenue commissioner, the Alabama Department of Revenue, or a lawyer licensed in Alabama.

Last updated: October 8, 2026.

Frequently Asked Questions

How much is the homestead exemption in Alabama?

It depends on your class. H-1 (under 65, not disabled) exempts $4,000 of assessed value from state taxes and $2,000 from most county taxes (Ala. Code 40-9-19). Owners 65 or older pay no state property tax, and H-3 exempts a principal residence from all property taxes for low-income seniors and permanently and totally disabled owners (Ala. Code 40-9-21).

When is the deadline to file for homestead exemption in Alabama?

ADOR Rule 810-4-1-.23 allows applications between October 1 and December 31 for the current year, or at any time during the year for the following year. Ala. Code 40-7-2.1(b) separately lets county assessors take applications from January 1 to September 30, effective the following October 1, so confirm the window with your county.

Do I have to reapply for homestead exemption every year in Alabama?

Owners 65 or older, disabled or blind do not reclaim the exemption after the first year, but they must verify eligibility each year, usually by affidavit (Ala. Code 40-9-21.1). Act 2026-598 (HB155), effective October 1, 2026, removes yearly verification for veterans rated permanently and totally disabled by the VA. ADOR's rule does not say whether the basic H-1 exemption needs renewal, so ask your county.

Do seniors pay property taxes in Alabama?

Homeowners 65 or older are exempt from the state portion of property tax, but ADOR notes that county taxes may still be due. Seniors under the $12,000 income limits can qualify for larger exemptions: H-2 adds $5,000 of assessed value off county taxes, and H-3 is a full exemption from all property taxes on the principal residence (Ala. Code 40-9-21).

What income limit applies to the Alabama senior homestead exemption?

H-2 requires adjusted gross income under $12,000 on your most recent Alabama income tax return. H-3 requires net taxable income of $12,000 or less on the latest federal return of you and your spouse. Owners 65 or older above those limits receive H-4.

Does the Alabama homestead exemption protect my house from creditors?

The property-tax exemption does not. A separate law, Ala. Code 6-10-2, protects a homestead of up to 160 acres valued at no more than $15,000, or $56,400 if you are 62 or older or have a disability, effective June 1, 2026. It does not block liens for unpaid purchase money or for work and materials, or mortgages you signed (Ala. Code 6-10-4).