If you are a homeowner in Alabama, you may be entitled to a break on your property taxes. You can claim a homestead exemption on a single-family residence that you own and occupy as your principal residence. This includes mobile homes, but does not include a second or vacation home. The homestead exemption applies on your home and up to 160 acres of land.
There are different types and amounts of exemptions depending on your age and level of income. All Alabama residents are eligible for an exemption of $4,000 in assessed value for state taxes and $2,000 in assessed value for county taxes.
If you over 65 years of age and your adjusted gross income on your Alabama State income tax return is less than $12,000, you can claim an exemption from all state property taxes and an exemption of up to $5,000 in assessed value for county property taxes. You can claim these same exemptions if you are permanently and totally disabled or blind, regardless of the amount of your income.
If you are over 65 or totally disabled and your taxable income on your federal income tax return is less than $7,500 you are exempt from all state and county property taxes in Alabama.
If you are over 65 you can claim an exemption from all Alabama state property taxes and an exemption of up to $2,000 of assessed value of county taxes, regardless of the amount of your income.
How to claim the homestead exemption
To claim your homestead exemption you should bring your deed or proof of ownership to your county tax assessor’s office. You can find links to the websites of the county tax assessors in Alabama on the Assessor Links USA website. You must claim the homestead exemption between October 1st and December 31st of each year, based on your status as a homeowner on October 1st. In October the county tax assessor mails a reclaim form to property owners who qualified for the homestead exemption before. With that form you can renew your claim by mail. You must be sure to return it before December 31st.
If you are over 65, you can establish proof of your age with your driver’s license, birth certificate, insurance forms, church records, or school records. To prove your income, you should bring copies of your most recent federal and Alabama state income tax returns.
To prove disability you must furnish a statement from two different sources, such as a letter from your physician, from Social Security, or a disability retirement letter from the company where you worked. If you are disabled you may be able to call your tax assessor’s office to obtain assistance without having to come into the office. According to the Alabama homestead law, if you are drawing a pension or annuity from the Armed Services or from a company or governmental agency as being permanently and totally disabled, you will automatically be granted a certificate of permanent and total disability by the State Commissioner of Revenue.
Alabama County Tax Collectors – Assessor Links USA
Alabama Homestead Exemptions – Alabama Department of Revenue
Exemptions – Montgomery County
Homestead Exemptions – Morgan County Commission
Homesteads – Alabama Department of Revenue