Senior or Blind Homestead Exemption

State

Alabama

Year

2022

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Exemption

Benefit

The benefit is up to a 100% exemption from state ad valorem taxes. The size of the county exemption for those over 65 is dependent on income. If an applicant's income claimed on the combined federal tax return is less than $12,000, there is no limit on the exemption, which also applies to school district taxes. If an applicant's income on the state tax return is less than $12,000, the county and school tax exemption is limited to $5,000 of assessed value. For those above the income limit, the exemption is $2,000 for county taxes only. At local option, counties, municipalities, and other taxing authorities may increase the exemption up to $4,000. For blind applicants, regardless of age or income level, the exemption is limited to $5,000 and applies to school district and county taxes.

How is Benefit Disbursed

Exemption from assessed value

Eligible Property Type

Residential

Characteristics of Eligible Property

Residential property that does not exceed 160 acres is eligible for this program.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Description of Eligibility Criteria

Applicants must be a state resident, and blind or over 65 years of age. For age-based eligibility, income exceeding $12,000 on the federal tax return disqualifies the applicant from the full benefit on their county taxes. If they have income exceeding $12,000 on their state income tax return, they are disqualified from receiving school district tax benefits. There is no age or income limitation for blind residents.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

Local option regarding program features

State Funding for Local Tax Loss

State and local government share the local tax loss

Description of State Funding for Tax Loss

The state covers the cost of the exemption from state property taxes.

Record ID

AL402_RR22

Footnotes

With respect to the county exemption, if homesteads are situated in more than one county, the exemption is prorated between the counties in the proportion that the area of the homestead in each county bears to the total are of the homestead claimed for exemption. No county exemption granted can prevent the payment of any bonded indebtedness secured by any tax to which the homestead exemption would apply. Income is defined as the Adjusted Gross Income as calculated on the federal income tax. If married, income is the sum of the adjusted gross incomes of the applicant and their spouse.

Sources

Ala. Code § 40-9-19;
Ala. Code § 40-9-21 (in effect for 2022)
Alabama Department of Revenue, Homestead Exemptions
[https://revenue.alabama.gov/property-tax/homestead-exemptions/ Accessed 12/08/2023]
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