Do You File Homestead Exemption Every Year in Alabama?

In Alabama, you do not have to file the homestead exemption every year if you hold the standard H1 exemption — once your county approves it, it stays in place as long as you own and live in the home. If you qualify for one of the enhanced exemptions based on age, disability, or income (H2, H3, or H4), you must verify your eligibility with the county every year, or the exemption comes off your property.

Find Out Which Exemption You Have

Whether annual filing applies to you depends entirely on which exemption your county granted. Alabama has four:

H1 is the standard exemption for homeowners under 65 who are not disabled. It reduces assessed value by $4,000 for state property tax and $2,000 for county property tax.
H2 covers homeowners 65 and older with adjusted gross income under $12,000 on their most recent state return, and homeowners who are permanently and totally disabled at any age. It eliminates state property tax and reduces county assessed value by $5,000, including school district taxes.
H3 covers two groups: homeowners 65 and older whose combined federal taxable income with a spouse is $12,000 or less, and homeowners who are permanently and totally disabled regardless of income. It eliminates all state, county, and school district property taxes.
H4 covers homeowners 65 and older with income above $12,000 on their most recent state return. It eliminates state property tax and gives the standard $2,000 county reduction.

These categories come from the Alabama Department of Revenue and sit under Sections 40-9-19 and 40-9-21 of the Alabama Code.¹

H1 Is a One-Time Filing

If you have the standard H1 exemption, you file once. After the county approves your initial application, the exemption remains in effect indefinitely, and you do not need to contact the assessor again unless something about your ownership or residence changes. The exemption is attached to the property as your primary residence, not to a calendar year.²

H2, H3, and H4 Require Yearly Verification

Every exemption tied to age, disability, or income requires annual verification. The statute draws a specific distinction: homeowners who qualify under these provisions do not have to “annually claim” the exemption, but they must “verify eligibility for the exemptions, as required by law, each year thereafter.”³

In practice, your county sends a form or letter each year asking you to confirm that your age, income, or disability status still qualifies you. You can respond in person, by mail, or electronically in counties that offer that option.³

The verification is lighter than the original application. For income-based exemptions, you typically show your most recent federal or state income tax return, or sign an affidavit stating your income if you were not required to file. For disability-based exemptions, the original proof of disability stays on file, so you generally don’t resubmit physician affidavits or VA letters each year. Veterans and others receiving a disability pension from the armed services or a government agency are issued an automatic disability certificate by the Alabama Department of Revenue and do not need to re-prove disability.⁴

What Happens if You Miss the Verification

If you hold an H2, H3, or H4 and fail to return the yearly verification, the exemption comes off your property. You get taxed at the full rate for that year, with no retroactive fix built into the statute. The county sends the notice, but the responsibility is yours. A letter lost in the mail produces the same result as forgetting.

For someone with an H3 exemption that zeros out all property taxes, losing it for a single year can mean an unexpected bill ranging from several hundred to over a thousand dollars, depending on your assessed value and local millage rate. If you realize you missed the deadline, call the county tax assessor’s office right away. Some counties may work with you, but the statute does not guarantee a grace period.

When You Need a Brand-New Application

Separate from the yearly verification, a few life changes require a fresh homestead application no matter which exemption you hold.

You buy a new home, or the title transfers through inheritance. The exemption does not travel with the property to a new owner; the new owner has to file.
The property stops being your primary residence. If you move, rent it out, or convert it to a business use, the exemption no longer applies and should be removed.
You become eligible for a better exemption. Turning 65 or becoming permanently and totally disabled lets you move from H1 to H2, H3, or H4, but you have to apply with the supporting documentation.
Your income shifts between brackets. Moving from H4 to H3 (or the reverse) calls for a new application reflecting the change.

Only one homestead exemption applies per owner, and joint owners receive the full exemption rather than a split one.⁵

If You’ve Never Filed Before

File between October 1 and December 31 to have the exemption take effect for the current tax year. You can file at other times, but it won’t apply until the next tax year. Eligibility is set by the October 1 lien date, so you must own and occupy the home as your primary residence on that date for the tax year you’re claiming.⁵

Applications go to your county’s tax assessing official in person, by mail, or electronically if the county offers it.³ Bring your deed, an Alabama driver’s license with an address matching the property, and, for an enhanced exemption, proof of age, income, or disability. There is no filing fee.

1
Alabama Department of Revenue. Homestead Exemptions
2
Alabama Legislature. Alabama Code 40-9-19 – Homesteads
3
Alabama Legislature. Alabama Code 40-9-21.1 – Verification of Eligibility by Mail for Certain Persons
4
Alabama Legislature. Alabama Code 40-9-21 – Principal Residences and 160 Acres Adjacent Thereto of Permanently and Totally Disabled Persons or Persons 65 Years of Age or Older Having Net Annual Federally Taxable Income of 12,000 or Less
5
Alabama Administrative Code. Alabama Administrative Code 810-4-1-.23 – Homestead and Principal Residence Exemptions From Property Tax