Alabama · Property tax exemptions · Updated Oct 2026
Alabama property tax exemptions
Homestead, senior, veteran, disability and surviving-spouse breaks in Alabama: what each one is worth, who qualifies, how to apply and the deadline, in plain English.
$4,000homestead exemption
Yessenior break
Full exemptiondisabled veterans
October 1 – December 31homestead deadline
0.38%median tax rate
Exemptions by group
Every break for one group on one page, with step-by-step instructions and the tools set for that group.
Your county tax assessor (in some counties the revenue commissioner or property tax commissioner) grants homestead exemptions. You apply in person at that county office; the Alabama Department of Revenue only sets the rules.
Takes $4,000 of assessed value off the state property tax and $2,000 of assessed value off county taxes (not county school taxes). Homes are assessed at 10% of market value, so $4,000 of assessed value is about $40,000 of market value. Your county, city or other local taxing body may give more, up to $4,000 of assessed value in total.
Who qualifies
You own a single-family home and live in it as your main home on October 1 (the start of the Alabama tax year). Under 65 and not disabled. Covers the house and up to 160 acres. Only one homestead per person or family.
How to apply
Apply in person at your county tax assessor or revenue commissioner's office. Bring your deed or proof of ownership and proof you live there (for example, Alabama driver's license with the property address).
Deadline
Claim between October 1 and December 31 of the tax year you first qualify (Ala. Code 40-7-10).
Renewal
One-time. Once allowed, the exemption carries forward each year. You must tell the assessor between October 1 and December 31 if you stop qualifying (for example, you move or rent the home out).
Age 65+ Homestead Exemption (H-4, and H-2 for lower income)
If you are 65 or older, you pay no state property tax on your home. On county taxes you get at least the regular $2,000 assessed-value exemption (H-4). If your Alabama adjusted gross income is under $12,000, the county exemption rises to $5,000 of assessed value, including county school taxes (H-2).
Who qualifies
Owner 65 or older who lives in the home as a main residence on October 1. H-2 needs adjusted gross income under $12,000 on your most recent Alabama income tax return (Form 40 line 10, Form 40A line 7, Form 40NR line 12).
Income limit
No limit for the state-tax exemption (H-4). For H-2: Alabama adjusted gross income under $12,000 on your most recent state return (ADOR memo for the 2025-2026 tax year: Form 40 line 10, Form 40A line 7, Form 40NR line 12).
How to apply
Apply in person at the county assessor's office. Bring proof of age (driver's license or birth certificate) and, for H-2, your latest Alabama income tax return or other proof of income.
Deadline
Between October 1 and December 31 of the tax year (Ala. Code 40-7-10).
Renewal
One-time, but the county may ask for current income proof to keep the income-based level.
Law
Ala. Code 40-9-19(a)(2), (d); DOR memorandum 'Homestead Exemption - Verification of Income, 2025-2026 Tax Year' (Oct. 2, 2025)
Total Exemption for Seniors with Low Taxable Income (H-3, Act 48)
Your home and up to 160 acres are exempt from all property taxes (state, county, city and school).
Who qualifies
Owner 65 or older whose net taxable income (you and your spouse combined) is $12,000 or less on your latest federal income tax return. The home must be your single-family main residence.
Income limit
Net taxable income of $12,000 or less for you and your spouse, from line 15 of the 2025 federal Form 1040 or 1040-SR. If you do not file a federal return, sign an affidavit that your net taxable income was $12,000 or less.
How to apply
Apply in person at the county assessor's office. Bring proof of age and your latest federal income tax return (or an affidavit if you do not file).
Deadline
Between October 1 and December 31 of the tax year (Ala. Code 40-7-10).
Renewal
Carries forward, but you may be asked to show income again; tell the assessor if your income goes over the limit.
Law
Ala. Code 40-9-21; DOR memorandum 'Homestead Exemption - Act 48 Principal Residence 2025-2026 Tax Year' (Oct. 2, 2025)
Permanent and Total Disability Exemption (H-3 Disabled)
Your home and up to 160 acres are exempt from all property taxes, at any age and with no income limit.
Who qualifies
Owner who is permanently and totally disabled and lives in the single-family home as a main residence. If you draw a disability pension or annuity from the armed services, a company or a government agency, you are automatically treated as permanently and totally disabled. Otherwise you need sworn statements from two Alabama-licensed physicians, at least one of them treating you for the disability.
How to apply
Apply in person at the county assessor's office. Bring proof of a disability pension or annuity, or two Physician's Affidavits (Form PT-PA-1) from Alabama-licensed doctors.
The home is exempt from all property taxes, whatever its value.
Who qualifies
A veteran whose home was acquired with a federal VA specially adapted housing grant (Public Law 702, 80th Congress; 38 U.S.C. Chapter 21), as long as the veteran, or the veteran's unremarried surviving spouse, owns and lives in it. Alabama has no other statewide disabled-veteran property tax exemption based on a VA rating; a veteran rated permanently and totally disabled who draws a disability pension can use the disability exemption above.
How to apply
Apply at the county assessor's office. Bring your VA letter showing the home was acquired with a specially adapted housing grant, your DD-214 and your deed.
Deadline
Between October 1 and December 31 of the tax year (Ala. Code 40-7-10).
Yes, from tax collections starting October 1, 2025 (base year October 1, 2024): the taxable assessed value of Class II and Class III real property (Class III includes owner-occupied homes) cannot rise more than 7% a year. The cap is removed and the property reassessed at full value when it is sold (not transfers between spouses or family members for little or no money, or at the owner's death), reclassified (for example, you rent the home out), placed in a tax increment district, or when any new improvement or significant addition is made (a pool or detached garage counts; ordinary maintenance does not). ADOR says the cap runs through the fiscal year beginning October 1, 2027. Act 2024-344 (HB73); Ala. Admin. Code r. 810-4-1-.28.
Good to know in Alabama
Alabama homes are assessed at 10% of market value, so a '$4,000 assessed value' exemption equals about $40,000 of market value (Ala. Code 40-8-1).
You claim the exemption once, and it carries forward; but if you stop living in the home you must tell the assessor between October 1 and December 31, and failing to do so on purpose is a misdemeanor (Ala. Code 40-7-10, 40-7-12).
Many counties and cities add their own senior or homestead exemptions by local law, so ask your county office what else applies.
Savings estimate for Alabama
Roughly what an exemption could save you a year: the value it takes off, times your tax rate.
Eligibility finder for Alabama
Answer a few questions to see which property tax breaks may fit you. Nothing you type here is sent anywhere.
Document checklist for Alabama
Pick the breaks you plan to apply for. You get a checklist of forms, documents, steps and deadlines to print or keep on your phone.
Questions about property tax exemptions in Alabama
Is there a homestead exemption in Alabama?
Yes: the Regular Homestead Exemption (H-1). Takes $4,000 of assessed value off the state property tax and $2,000 of assessed value off county taxes (not county school taxes). Homes are assessed at 10% of market value, so $4,000 of assessed value is about $40,000 of market value. Your county, city or other local taxing body may give more, up to $4,000 of assessed value in total. Who qualifies: You own a single-family home and live in it as your main home on October 1 (the start of the Alabama tax year). Under 65 and not disabled. Covers the house and up to 160 acres. Only one homestead per person or family.
When is the deadline to apply for the homestead exemption in Alabama?
Claim between October 1 and December 31 of the tax year you first qualify (Ala. Code 40-7-10).
Do I have to reapply for the homestead exemption every year in Alabama?
One-time. Once allowed, the exemption carries forward each year. You must tell the assessor between October 1 and December 31 if you stop qualifying (for example, you move or rent the home out).
Are there property tax breaks for seniors in Alabama?
Age 65+ Homestead Exemption (H-4, and H-2 for lower income): If you are 65 or older, you pay no state property tax on your home. On county taxes you get at least the regular $2,000 assessed-value exemption (H-4). If your Alabama adjusted gross income is under $12,000, the county exemption rises to $5,000 of assessed value, including county school taxes (H-2). Total Exemption for Seniors with Low Taxable Income (H-3, Act 48): Your home and up to 160 acres are exempt from all property taxes (state, county, city and school).
Do disabled veterans get a property tax exemption in Alabama?
Exemption for Veterans' Specially Adapted Homes: The home is exempt from all property taxes, whatever its value.
Is there a limit on how fast my home's taxable value can rise in Alabama?
Yes, from tax collections starting October 1, 2025 (base year October 1, 2024): the taxable assessed value of Class II and Class III real property (Class III includes owner-occupied homes) cannot rise more than 7% a year. The cap is removed and the property reassessed at full value when it is sold (not transfers between spouses or family members for little or no money, or at the owner's death), reclassified (for example, you rent the home out), placed in a tax increment district, or when any new improvement or significant addition is made (a pool or detached garage counts; ordinary maintenance does not). ADOR says the cap runs through the fiscal year beginning October 1, 2027. Act 2024-344 (HB73); Ala. Admin. Code r. 810-4-1-.28.
Where do I apply for property tax exemptions in Alabama?
Your county tax assessor (in some counties the revenue commissioner or property tax commissioner) grants homestead exemptions. You apply in person at that county office; the Alabama Department of Revenue only sets the rules.
Think your home’s assessed value is too high? An exemption and an appeal are separate: you can do both.
Median effective tax rate: U.S. Census Bureau, American Community Survey, 2020–2024 5-year estimates, tables B25103 (median real estate taxes paid, owner-occupied homes) and B25077 (median value, owner-occupied homes). The rate is the median tax paid divided by the median home value.