Alabama Program Overview

• Under 65
• Homestead must be occupied by person(s) whose name appears on the deed
• Must live in the house on October 1st of the year claimed
• Must file exemption claim/validation only once (before December 31st of the year purchased)

The filing season to apply for a Homestead Exemption is October 1 – December 31.

Each local county office may require different documentation, but in general, be prepared to provide the following for Proof of Occupancy:

• Driver’s License for all owners
• Address on driver’s license must match the property address and be issued on or before October 1
• Utility Bills for all owners
• Copy of Deed with correct address, legal description, and names

For an exemption from all of the state portion of the property taxes and $5,000 of assessed value on the county portion of the ad valorem taxes (including school district taxes):

• You must be 65 years old or older, or be legally blind, or be retired due to permanent and total disability.
• You must own and occupy the property as your primary residence.
• If qualifying based on age (65 or older), your combined income (taxpayer and spouse), as reflected on your most recent state or federal income tax return, cannot exceed $12,000.
• If qualifying due to legal blindness or permanent and total disability, there is no income limitation.

Some homeowners who meet these criteria may owe little or no property tax, depending on the value of the property and applicable local taxes.

Taxpayers age 65 and older with income greater than $12,000 on their most recent income tax return may still qualify for a partial exemption:

• You must be 65 years old or older.
• You must own and occupy the property as your primary residence.
• Your combined income (taxpayer and spouse) exceeds $12,000, as reflected on your most recent state or federal income tax return.

Benefit:

• Exempt from all state ad valorem property taxes.
• Receive the regular homestead exemption on the county portion of property taxes ($2,000 of assessed value).

The filing season to apply for a Homestead Exemption is October 1 – December 31.

Be prepared to provide the following:

• Proof of age
• Proof of occupancy
• Federal Income Tax Return
• State Income Tax Return

In order to qualify for individuals who are retired due to being totally and permanently disabled, you must furnish one letter from the following sources to show proof of disability:

• One letter from the Social Security Administration (Letter must state that the claimant is receiving Retirement Disability Benefits), or one letter showing that they are drawing a pension or annuity from the Armed Services or a company or governmental agency because they are retired due to being totally and permanently disabled, OR
• Two letters from two different Licensed Physicians (stating the claimant is retired due to being totally and permanently disabled.

For a Blind Exemption:

• One letter is required from a duly licensed Ophthalmologist or Optometrist (letter must state a vision of 20/200 or less in the better eye with correcting glasses).

• Own and occupy property as primary residence.
• Must be permanently or totally disabled.

The filing season to apply for a Homestead Exemption is October 1 – December 31.

Be prepared to provide:

• Copy of Alabama Driver’s License.
• Proof of occupancy.
• Disability status must be evidenced by at least (2) medical documents explaining the nature of disability or a copy of the original letter of award from Social Security or the Veterans Administration. Documents must state the month & year that disability began.