Question 1

What is the homestead exemption in Alabama?

Accepted Answer

A homestead is a single-family owner-occupied dwelling and its land, up to 160 acres, that the owner occupies as a primary residence on the first day of the tax year. For an owner under 65 and not disabled (type H-1), the regular exemption is $4,000 of assessed value for state taxes and $2,000 of assessed value for county taxes, with no income limit. Counties, municipalities or other taxing authorities may grant a homestead exemption of up to $4,000 of assessed value. Owner-occupied homes are also assessed at the lowest residential rate (Class III, 10% of appraised value).

Question 2

How do you apply for a homestead exemption in Alabama?

Accepted Answer

Apply at your local county office (tax assessor or revenue commissioner). The first claim is made in person or by mail on an affidavit form from the tax assessing official, and the county may also accept it electronically. After qualifying, owners do not have to reapply each year but must verify eligibility each year on the county's form.

Question 3

When is the deadline to apply for a homestead exemption in Alabama?

Accepted Answer

The county tax assessor may accept homestead exemption applications from January 1 to September 30 of each tax year, and the exemption takes effect the following October 1. Eligibility depends on owning and occupying the home as a primary residence on the first day of the tax year.

Question 4

Do seniors get a property tax exemption in Alabama?

Accepted Answer

Owners 65 or older are exempt from the state portion of property tax with no income limit. County relief depends on income: with adjusted gross income of $12,000 or more on the most recent Alabama return (type H-4), the owner gets the regular $2,000 county exemption; with adjusted gross income under $12,000 on the state return (type H-2), the county exemption is $5,000 of assessed value, including school district taxes; with net taxable income of $12,000 or less on the combined federal return (type H-3), the owner is exempt from all ad valorem taxes (state, county and city) on the principal residence under § 40-9-21. The department notes county taxes may still be due for owners over 65.

Question 5

Do disabled veterans pay property tax in Alabama?

Accepted Answer

Alabama's homestead rules cover veterans through the disability exemptions: a veteran determined permanently and totally disabled by the U.S. Department of Veterans Affairs who qualifies for a homestead exemption under § 40-9-19(d) or § 40-9-21 (the total exemption from all ad valorem taxes on the principal residence for permanently and totally disabled owners, with no income limit). Effective October 1, 2026, such a veteran does not have to reclaim or annually verify the exemption after first qualifying; the release ends when the veteran dies or establishes a new homestead.

Question 6

Is there a property tax exemption for people with disabilities in Alabama?

Accepted Answer

An owner of any age who is permanently and totally disabled is exempt from all ad valorem taxes (state, county and city) on the principal residence, with no assessed-value maximum and no income limit (type H-3, § 40-9-21). An owner who is blind is exempt from the state portion with no maximum and receives a county exemption of up to $5,000 of assessed value, with no income limit. Disability is verified with a Physician's Affidavit (PT-PA-1).

Question 7

How much can a home's assessed value go up each year in Alabama?

Accepted Answer

Act 2024-344 (HB73) caps the annual increase in taxable assessed value of Class II and Class III real property, which includes owner-occupied residential property, at 7%. The base year was October 1, 2024, for tax collections beginning October 1, 2025, and the limits continue through the fiscal year beginning October 1, 2027. No application is needed. The cap is removed and the property reassessed at full value in cases such as a change in ownership (transfers between spouses or family members for no or nominal consideration, or on the owner's death, do not count), a change in classification, property never before assessed, a significant addition or improvement, or location in a tax increment district.

Question 8

How do you appeal a property tax assessment in Alabama?

Accepted Answer

If you believe your property value is incorrect, file a written protest with the County Board of Equalization within 30 days after receiving written notice of valuation. The appeals process is set out in Code of Ala. §§ 40-3-20, 40-3-24 and 40-3-25.

Question 9

When are property taxes due in Alabama?

Accepted Answer

Property taxes are due October 1 and are delinquent after December 31 (delinquent January 1). Unpaid taxes are turned over to the probate court in February, advertised for sale in April, and sold at the tax sale in May.

Homestead exemption	A homestead is a single-family owner-occupied dwelling and its land, up to 160 acres, that the owner occupies as a primary residence on the first day of the tax year. For an owner under 65 and not disabled (type H-1), the regular exemption is $4,000 of assessed value for state taxes and $2,000 of assessed value for county taxes, with no income limit. Counties, municipalities or other taxing authorities may grant a homestead exemption of up to $4,000 of assessed value. Owner-occupied homes are also assessed at the lowest residential rate (Class III, 10% of appraised value). Assessment classes: https://www.revenue.alabama.gov/property-tax/property-tax-assessment/ Source: Alabama Department of Revenue, Homestead Exemptions; Code of Ala. §§ 40-9-19 to 40-9-21
How to apply	Apply at your local county office (tax assessor or revenue commissioner). The first claim is made in person or by mail on an affidavit form from the tax assessing official, and the county may also accept it electronically. After qualifying, owners do not have to reapply each year but must verify eligibility each year on the county's form. Source: Alabama Department of Revenue, Homestead Exemptions; Code of Ala. §§ 40-7-2.1, 40-9-21.1 (as amended by HB155, 2026 Regular Session)
Application deadline	The county tax assessor may accept homestead exemption applications from January 1 to September 30 of each tax year, and the exemption takes effect the following October 1. Eligibility depends on owning and occupying the home as a primary residence on the first day of the tax year. Source: Code of Ala. § 40-7-2.1 (1983 Taxpayer Convenience Act), as shown in HB155 (2026); Alabama Department of Revenue, Homestead Exemptions
Limits on assessment increases	Act 2024-344 (HB73) caps the annual increase in taxable assessed value of Class II and Class III real property, which includes owner-occupied residential property, at 7%. The base year was October 1, 2024, for tax collections beginning October 1, 2025, and the limits continue through the fiscal year beginning October 1, 2027. No application is needed. The cap is removed and the property reassessed at full value in cases such as a change in ownership (transfers between spouses or family members for no or nominal consideration, or on the owner's death, do not count), a change in classification, property never before assessed, a significant addition or improvement, or location in a tax increment district. Source: Alabama Department of Revenue, 7% Cap Information – HB73 (Act 2024-344)

Senior exemptions and freezes	Owners 65 or older are exempt from the state portion of property tax with no income limit. County relief depends on income: with adjusted gross income of $12,000 or more on the most recent Alabama return (type H-4), the owner gets the regular $2,000 county exemption; with adjusted gross income under $12,000 on the state return (type H-2), the county exemption is $5,000 of assessed value, including school district taxes; with net taxable income of $12,000 or less on the combined federal return (type H-3), the owner is exempt from all ad valorem taxes (state, county and city) on the principal residence under § 40-9-21. The department notes county taxes may still be due for owners over 65. Source: Alabama Department of Revenue, Homestead Exemptions (Act 2013-295 homestead types); Code of Ala. § 40-9-21
Veteran exemptions	Alabama's homestead rules cover veterans through the disability exemptions: a veteran determined permanently and totally disabled by the U.S. Department of Veterans Affairs who qualifies for a homestead exemption under § 40-9-19(d) or § 40-9-21 (the total exemption from all ad valorem taxes on the principal residence for permanently and totally disabled owners, with no income limit). Effective October 1, 2026, such a veteran does not have to reclaim or annually verify the exemption after first qualifying; the release ends when the veteran dies or establishes a new homestead. Source: Code of Ala. §§ 40-7-2.1, 40-9-21.1, as amended by HB155 (2026 Regular Session); Alabama Department of Revenue, Homestead Exemptions
Disability exemptions	An owner of any age who is permanently and totally disabled is exempt from all ad valorem taxes (state, county and city) on the principal residence, with no assessed-value maximum and no income limit (type H-3, § 40-9-21). An owner who is blind is exempt from the state portion with no maximum and receives a county exemption of up to $5,000 of assessed value, with no income limit. Disability is verified with a Physician's Affidavit (PT-PA-1). Source: Alabama Department of Revenue, Homestead Exemptions; Code of Ala. § 40-9-21

When property taxes are due	Property taxes are due October 1 and are delinquent after December 31 (delinquent January 1). Unpaid taxes are turned over to the probate court in February, advertised for sale in April, and sold at the tax sale in May. Source: Alabama Department of Revenue FAQ, What is the timetable for property taxes?
Appealing your assessment	If you believe your property value is incorrect, file a written protest with the County Board of Equalization within 30 days after receiving written notice of valuation. The appeals process is set out in Code of Ala. §§ 40-3-20, 40-3-24 and 40-3-25. Source: Alabama Department of Revenue FAQ, What can I do if I do not agree with the value on my property?

Alabama Property Tax Exemptions: Homestead, Senior and Veteran Relief

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The homestead exemption

Senior, veteran and disability relief

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Property Tax & Homestead Exemptions FAQ

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