Principal Residence Exemption for Persons 65 or Older (Homestead 3 / H-3)
Who qualifies
- Age
- 65 or older
- Income limit
- $12,000$12,000 net annual taxable income (taxpayer plus spouse, per the latest U.S. income tax return) is the ceiling for the FULL all-taxes exemption. Above $12,000, a 65+ owner is still fully exempt from all state property taxes and may receive a $5,000 county assessed-value reduction where income is under $12,000; the state-tax full exemption for age 65+ has no income limit.
- Ownership
- Owner-occupant 65 or older as of the October 1 lien date; up to 160 acres.
- Residency
- Single-family, owner-occupied principal residence in Alabama.
How much it saves
Worked example — a $300,000 home at Alabama's median effective rate (~0.33%):
~$990/year
Estimate — this is an estimate, not a quoted bill.
Your county's rate differs — use the calculator for a figure tuned to where you live.
How to apply
- Application required: Yes
- Deadline: Apply with the county tax assessing official between October 1 and December 31 for the current year.
- Renewal: other — After initial qualification, a person granted the exemption under the income limitation verifies eligibility each year by mail on an affidavit form provided by the county assessing official (no full re-application).
Combining with other exemptions
Supersedes the regular H-1 homestead for owners 65+. A single owner-occupant claims one homestead/principal-residence exemption.
Official sources:
Informational only — not legal or tax advice. Exemption rules and amounts are summarized from official statutes and state tax-agency sources as of each program's verified date and can change by legislative session. Dollar figures are estimates derived from Census ACS county tax data, not actual bills. Confirm your eligibility and current amounts with your county assessor before relying on anything here.