Alabama Homestead Tax Exemption

Homestead exemptions can reduce the financial burden on homeowners in Alabama by exempting them from paying the state portion of property taxes. In addition, they can protect their homes from foreclosure if they are behind on paying property taxes or utilities. However, these protections are limited in scope and must be claimed by filing an application with the county tax assessor.

If you are 65 or older, you can apply for a homestead exemption covering up to $5,000 of your State taxes and up to $2,000 of your County taxes. You must provide proof of your age and income, such as a copy of your driver’s license, award letter from Social Security, benefits verification from the VA, or two P-T-A forms. You must also renew this claim each year. If you sell your property, you must notify the County Revenue Commissioner’s office of any change in ownership.

Alabama Homestead Tax Exemption Eligibility

Eligibility for this benefit depends on age and income. A homeowner must own and occupy their property as their primary residence on October 1 of the year they are applying for the homestead exemption. They must also meet certain criteria, including having a net taxable income of $12,000 or less.

If a homeowner meets these requirements, they will be exempt from paying the state portion of property taxes for their principal residence and up to 160 acres of land adjacent thereto. Additionally, if they are permanently and totally disabled, they can claim an additional $2,000 exemption on their county taxes. They must submit a medical certificate from their physician to prove their disability.

Documents You Need to File Homestead in Alabama

You can use an online form to file your homestead in Alabama. Ensure you complete all the required fields and provide all the necessary documentation. Some required documents include a copy of your deed and an Alabama driver’s license matching your homestead address. You will also need to submit proof of age and income.

Those who claim homestead exemption on their primary residence are exempt from the state portion of their property tax and can claim up to 160 acres. To qualify for this exemption, an individual must own and occupy the property as their primary residence, use it exclusively for residential purposes, and have a net taxable income of $12,000 or less. In addition, they must reclaim their homestead each year between October 1st and December 31st.