Alabama seniors 65 and older can eliminate all state property taxes on their home, with no income test required. That is the H-4 exemption, and it is the floor. Two more exemptions go further for seniors with limited income, and the top tier wipes out both state and county property taxes entirely. This guide explains all three and how to apply with your county tax assessor.

In This Guide

Alabama Senior Property Tax Relief: How the Three Tiers Work

Alabama structures its senior property-tax relief as a stack. The H-4 is the base; H-2 and H-3 build on it for seniors with lower income. You claim the highest tier you qualify for. All three come from the Alabama Department of Revenue Homestead Exemptions program and are administered at the county level.

None of these apply automatically. You claim them by applying with your county tax assessor, and because Alabama sets the exemptions by state law but administers them county by county, the filing and renewal mechanics are your county's to explain.

A homeowner who is permanently and totally disabled qualifies, regardless of age, for the H-3 exemption from all ad valorem taxes, with no income limitation. Legal blindness works differently. A homeowner who is blind, regardless of age, is exempt from the state portion of property tax, and county taxes may still be due.

H-4: Full State Exemption for All Seniors 65+

This one has no income test. If you are 65 or older and you own and occupy your homestead in Alabama, you are exempt from all state-portion ad valorem taxes at any income level. A homestead here means a single-family owner-occupied dwelling and the land thereto, not exceeding 160 acres.

On Alabama's exemption tables, the H-4 row is the one for taxpayers 65 and older whose income is above $12,000. Seniors below that threshold are not left out: they get the same full state-portion exemption through H-2 or H-3, plus county relief on top.

An Alabama property tax bill has a state portion and local portions (county, school district, and municipal). The H-4 removes the state portion entirely. On the county portion, you still receive the regular homestead exemption of $2,000 in assessed value, and county taxes above that still apply. So the H-4 lowers your bill without erasing it, and how much it saves depends on how your county's millage rates compare with the state's.

Because there is no income test, proof of age is the core of the application. You file it at your county tax assessor's office.

H-2: Add County Relief for Lower-Income Seniors

Alabama senior property tax relief goes further when your income is limited.

If you are 65 or older and your annual Alabama adjusted gross income is less than $12,000, the H-2 exemption exempts you from all of the state portion plus a $5,000 assessed-value exemption on the county portion, including school district ad valorem taxes. Note the direction of that threshold: $12,000 exactly is not under $12,000, so a senior right at the line does not qualify for H-2 (the H-3 test below is the inclusive one).

A few things to understand about that $5,000 figure. It is $5,000 of assessed value, not $5,000 off your tax bill and not $5,000 of market value. The exemption comes off the county assessed value before millage rates are applied, which means the dollar savings depend on your local millage rate.

The $12,000 threshold is measured against the adjusted gross income shown on your most recent Alabama income tax return, or other appropriate evidence of income. Whether Social Security counts toward Alabama AGI depends on your situation, and how a co-owner's income is counted is a question for your assessor, so confirm both with your county assessor or a tax professional.

H-3: Zero Property Tax for the Lowest-Income Seniors

The H-3 is the strongest tier. Seniors 65 or older whose net taxable income on the combined (taxpayer and spouse) federal return is $12,000 or less are exempt from all ad valorem taxes, state, county, and municipal, with no cap on the assessed value of the home (up to 160 acres of land). This threshold is inclusive: $12,000 exactly still qualifies.

That is a full exemption. State taxes, county taxes, school district levies included in county assessments, all of it gone for the year.

The H-3 uses a different income measure than the H-2. It looks at net taxable income on your federal return, not Alabama AGI. Federal taxable income is what is left after deductions on your federal return, so it is lower than your total income. Before assuming you are over the limit, look at the taxable income line of your own federal return rather than your gross income, and confirm with your county assessor or a tax professional.

If you qualify for H-3, you do not separately claim H-2 or H-4. The H-3 is the top tier, and it covers everything.

Alabama Senior Property Tax Relief at a Glance

Exemption Who qualifies What it removes Income test
H-4 Homeowners 65+ with income above $12,000 (every homeowner 65+ gets the state-portion exemption at any income) All state-portion ad valorem taxes; regular $2,000 county homestead exemption None for the state portion
H-2 Homeowners 65+ with Alabama AGI under $12,000 All state taxes + $5,000 of county assessed value, including school district taxes Alabama AGI less than $12,000 (exactly $12,000 does not qualify)
H-3 Homeowners 65+ with combined (taxpayer and spouse) federal net taxable income of $12,000 or less All state, county, and municipal ad valorem taxes, no assessed-value cap Federal net taxable income of $12,000 or less (exactly $12,000 qualifies)

The tiers are additive in concept but exclusive in application. You claim the one that covers the most. For most lower-income seniors, H-3 covers everything. For moderate-income seniors who don't qualify for H-2, H-4 still removes the state portion.

What These Exemptions Mean in Dollars

The H-4 and H-2 exemptions work by removing assessed value and the state portion of the levy before your bill is calculated; the H-3 removes the ad valorem tax entirely. For H-4 and H-2, the actual dollar savings depend on your home's assessed value and on local millage rates, which vary by county and municipality. Your county tax assessor can give you the exact figures for your parcel.

How to Apply

All three exemptions are claimed by applying with the county tax assessor or taxing official in the county where your property is located, not with the state.

1
Step 1

Find your county tax assessor

Search "[your county] Alabama tax assessor" for the office website and contact information.

2
Step 2

Gather your documents

Bring proof of age (a driver's license or birth certificate), your property deed or tax parcel number, and income documentation for H-2 or H-3 if you plan to claim those tiers. For H-3, you'll typically need your federal tax return or a Social Security income statement.

3
Step 3

File the application

Assessor offices vary on their exact form names and filing windows, so contact your county assessor directly to confirm current requirements.

4
Step 4

Ask about re-certification

The exemptions are set by state law but administered county by county, and re-certification for the income-tested tiers (H-2 and H-3) is handled locally. Ask your assessor whether you must re-file each year or whether the exemption stays on file until your status changes.

If you miss a year or never filed, ask your assessor whether an adjustment for prior years is possible in your county.

If these exemptions are one piece of a larger plan to pay for care, see our guide on how to pay for senior care, which covers Medicaid, VA benefits, and private-pay options.

Not sure which exemption applies to your situation? Chat with Brevy's care navigator to get oriented.

Frequently Asked Questions

Do I need to apply every year for the Alabama senior property tax exemption?

The exemptions themselves are set by state law, but they are claimed and administered through your county tax assessor, so renewal practice is a county question. Ask your assessor when you file whether the exemption carries forward or whether the income-tested tiers (H-2 and H-3) need re-certification each year.

Does Social Security count toward the $12,000 income limit?

For H-2, the threshold is Alabama AGI; for H-3, it is federal taxable income. Whether Social Security income counts toward either threshold depends on your situation. Confirm with your county assessor or a tax professional.

Can I claim these exemptions if I have a mortgage?

Yes. Ownership, not a paid-off title, is what qualifies you. As long as you own and occupy the property as your homestead, you can claim the exemption even with an outstanding mortgage.

What if my spouse is under 65 but I am 65 or older?

The exemption is claimed by the taxpayer who is 65 or older, so if you are 65 or older and you own and occupy the homestead, you can apply even if a co-owner is younger. The H-3 income test looks at net taxable income on the combined taxpayer-and-spouse federal return, so include your spouse's income there. The H-2 test looks at the adjusted gross income on your most recent Alabama return; ask your assessor how they treat a co-owner's income.

What is the difference between assessed value and market value in Alabama?

Assessed value is the figure millage rates are applied to, and your county assessor can tell you both your appraised value and the assessed value derived from it. The H-2 exemption removes $5,000 from that county assessed value before millage rates are applied. The H-3 exemption is not capped by assessed value at all: it exempts the principal residence from ad valorem taxes outright, up to 160 acres.

Learn More

FinancialAlabama Retirement Income TaxAlabama exempts Social Security and traditional pensions but taxes IRA and 401(k) withdrawals at 2% to 5%. See what retirees keep and what it takes. FinancialSenior Property Tax Relief by StateSenior property tax relief lowers what older homeowners owe through exemptions, freezes, credits, and deferrals. Learn how each works and find your state. FinancialHow to Pay for Senior CareHow to pay for senior care: what it costs nationally and how Medicaid, Medicare, VA benefits, and private pay each fit. Who qualifies, what's covered, in 2026. FinancialSelling or Renting Your Home to Pay for Senior CareSelling or renting the home to pay for senior care: the capital-gains exclusion, what a sale does to Medicaid, rent-vs-sell, and the step-up in basis. FinancialReverse Mortgages and Senior CareHow a reverse mortgage (FHA HECM) can pay for senior care, why it fits in-home care and a remaining spouse, and why it rarely works for a nursing home.

Find personalized help with Alabama senior property tax relief and senior care costs at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.

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Brevy Care Team

Expert eldercare guidance from Brevy's team of healthcare professionals and researchers.