A Homestead Exemption is a tax deduction that a property owner may be entitled to if he or she owns a single family residence and occupies it on the first day of the tax year (Oct. 1) for which they are applying. There are four types of homestead exemptions.

1. Regular Homestead Exemption is available to all citizens of Alabama who own and occupy single family residences, including manufactured homes, as their home and use this property for no other purposes. The amount of the exemption is $4,000 in assessed value for state taxes and $2,000 in assessed value for county taxes.
2. ACT 48 Homestead Exemption is for persons over age 65 or who are totally disabled. This exemption is for taxes on property occupied by the owner if their taxable income is less than $7,500.
3. ACT 91-A Homestead Exemption is for persons over age 65 whose adjusted gross income is less than $12,000 annually. This exemption is for state and county taxes up to $5,000 in assessed value. Those who are permanently and totally disabled or blind regardless of income are entitled to this exemption also.
4. ACT 91-B Homestead Exemption is for persons over 65 regardless of income. This exemption is for the total assessed value of state tax and up to $2,000 in assessed value of county tax. Proof of age when required, may be established by a driver's license, birth certificate, insurance forms, church records, school records, etc. To prove disability, you must furnish a statement from two different sources as to your Total Disability (ACT 48), or "Total and Permanent Disability" (ACT 91-A). Physician's letters, Veterans Administration, documentation from the Social Security Administration, and retirement letters are all acceptable (must be worded as applied for). People who are disabled may receive service without coming to the courthouse by calling (256) 825-7831.

Exemptions, regardless of which type, must be applied for between October 1 and December 31. The exemption will not decrease ones taxes until the following tax year, remember taxes are paid in arrears. If one fails to apply for his/her exemption between October and December that person must then wait until the following October (1 year later) to apply for their exemption.