Senior, Veteran and Disability Property Tax Relief in Alabama

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.

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.

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).