Alabama seniors 65 and older are automatically exempt from all state property taxes on their home, 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 taxes entirely. This guide explains all three and how to apply with your county tax assessor.
In This Guide
- Key Takeaways
- Alabama Senior Property Tax Relief: How the Three Tiers Work
- H-4: Full State Exemption for All Seniors 65+
- H-2: Add $5,000 County Relief for Lower-Income Seniors
- H-3: Zero Property Tax for the Lowest-Income Seniors
- Alabama Senior Property Tax Relief at a Glance
- How to Apply
- Frequently Asked Questions
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.
None of these apply automatically. You apply once with your county tax assessor, and the exemption stays on file as long as you remain eligible.
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.
Alabama property taxes have two main components: state taxes and county taxes. The H-4 removes the state portion entirely. County taxes still apply. For many seniors, the state portion is a meaningful share of the total bill, so even without the county relief, the H-4 cuts the tax bill.
You only need to show your age. Apply at your county tax assessor's office once and the exemption carries forward.
H-2: Add $5,000 County Relief for Lower-Income Seniors
Alabama senior property tax relief goes further when your combined household income is limited.
If you are 65 or older and your combined Alabama adjusted gross income is under $12,000, the H-2 exemption adds a $5,000 assessed-value exemption from county taxes (including school district taxes) on top of the full state exemption you already receive under H-4.
A few things to understand about that $5,000 figure. Alabama residential property is assessed at a fraction of its appraised value, so $5,000 in assessed value represents a larger amount of actual market value. The exemption comes off the assessed value before county millage rates are applied, which means the dollar savings depend on local millage rates.
The $12,000 income threshold is measured against combined Alabama AGI, meaning all income sources for everyone who owns the home together. Whether Social Security counts toward Alabama AGI depends on your situation — confirm 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 combined federal taxable income does not exceed $12,000 are exempt from all ad valorem taxes, both state and county, with no cap on the assessed value of the home.
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 federal taxable income, not Alabama AGI. Federal taxable income is after deductions and exemptions on your federal return, so it tends to be lower than total income. For many seniors with Social Security as their primary income, their federal taxable income falls comfortably under $12,000 because some income sources may not count toward the threshold — 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 | All homeowners 65+ | All state-portion ad valorem taxes | None |
| H-2 | Homeowners 65+ with combined AL AGI under $12,000 | All state taxes + $5,000 of county assessed value | Alabama AGI of $12,000 or less |
| H-3 | Homeowners 65+ with combined federal taxable income of $12,000 or less | All state and county ad valorem taxes | Federal taxable income under $12,000 |
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 Alabama property tax exemptions reduce the assessed value that millage rates are applied to. The actual dollar savings depend on your home's assessed value and your county's millage rates, which vary by municipality. Your county tax assessor can give you the exact figures for your situation.
How to Apply
All three exemptions are filed with the county tax assessor in the county where your property is located. There is no state-level portal.
Steps:
- Find your county tax assessor. Search "[your county] Alabama tax assessor" for the office website and contact information.
- 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.
- File the application. Assessor offices vary on their exact form names and filing windows; contact your county assessor directly to confirm current requirements.
- Re-certify as required. Some counties require annual re-certification for income-tested exemptions (H-2 and H-3). Others keep the exemption on file until your status changes. Ask when you apply.
If you miss a year or never filed, ask your assessor about retroactive corrections. Some counties allow an adjustment back to the year you first qualified.
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
For the H-4, most counties carry the exemption forward once filed. For H-2 and H-3, which depend on income, some counties require annual re-certification. Ask your county assessor when you apply.
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.
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.
The exemption is based on the qualifying owner's age. If you are 65 or older and you own the homestead, you can apply even if a co-owner is younger. The income test for H-2 and H-3 looks at combined income for all owners, so add your spouse's income too.
Alabama residential property is assessed at a fraction of appraised value (confirm the exact ratio with your county assessor). The H-2 exemption removes $5,000 from that county assessed value before millage rates are applied. The H-3 exemption removes the full assessed value for tax purposes.
Learn More
- Senior Property Tax Relief by State
- How to Pay for Senior Care
- Selling or Renting Your Home to Pay for Senior Care
- Reverse Mortgages and Senior Care
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.