Homestead Exemption

A Homestead Exemption is a tax deduction that a property owner may be entitled to if he or she owns a single family residence and occupies it on the first day of the tax year (Oct. 1) for which they are applying. There are four types of homestead exemptions.

On May 10, 2012 Governor Bentley signed HB120 into law as Act 2012-313. This act amends Sections 40-9-19, 40-9-21 and 40-9-21.1 relating to homestead exemptions.

Regular Homestead Exemption (HE1) is for persons who are residents of this state not over 65 years of age, who are owners and occupants of a single family dwelling. This exemption exempts up to $4,000 in assessed value for the state and $2,000 assessed value for the county. Homestead exemptions apply only to your primary residence.

Act 91-A Homestead Exemption (HE2) applies to persons who are blind (Section 1-1-3). This exemption exempts the state portion of taxes on your principal residence and up to 160 acres for the owners and occupants of a single family residence. This exemption also, exempts up to $5,000 in assessed value for county and school taxes.

Act 48-Homestead Exemption (HE3) provides for a total exemption of taxes on principal residence and up to 160 acres for the owners and occupants of a single family residence. This exemption is for persons who are 65 years or older OR  for persons who are retired because of  permanent and total disability with a annual taxable income as shown on such person’s and spouse’s latest Federal Income Tax Return of $12,000 or less.

Act 91-B-Homestead Exemption (HE4) provides for exemption of the state portion of taxes on principal residence and up to 160 acres for owners and occupants of a single family residence. This exemption is for persons who are 65 years or older regardless of income.

People who are disabled may receive service without coming to the courthouse by calling (256) 825-7831.

Exemptions, regardless of which type, must be applied for between October 1 and December 31. The exemption will not decrease ones taxes until the following tax year, remember taxes are paid in arrears. If one fails to apply for his/her exemption between October and December that person must then wait until the following October (1 year later) to apply for their exemption.