What is the homestead exemption in Alabama and how do I claim it?

Alabama doubled its creditor homestead in 2015 and offers powerful senior property-tax relief.

1. Two Concepts

Alabama has (a) Homestead Exemptions for property tax administered by county revenue commissioners under § 40-9-19 and (b) a creditor/bankruptcy homestead under § 6-10-2.

2. Creditor / Bankruptcy Homestead

Ala. Code § 6-10-2 (amended 2015) protects $16,450 per debtor; joint filers stack to $32,900. The exemption covers up to 160 acres.

3. Automatic vs Declaration

The exemption auto-attaches; no recording is required.

4. Federal Bankruptcy Cap

Alabama opted out of federal exemptions (§ 6-10-11). BAPCPA § 522(p)'s $189,050 cap is rarely relevant.

5. Property-Tax Homestead

Four tiers under § 40-9-19:

Homestead Exemption I: $4,000 state + $2,000 county assessed-value exemption for owner-occupied residences;

Exemption II: 65+ regardless of income — total exemption from state property tax;

Exemption III: 65+ with AGI under $12,000 (state and federal returns) — total exemption from state and county property tax up to 160 acres;

Exemption IV: totally and permanently disabled regardless of income/age — total exemption from state property tax.

6. Filing Property-Tax Exemption

File with the county revenue commissioner annually between October 1 and December 31; some counties auto-renew.

7. Spousal Protections

Both spouses must join in conveyance of homestead (§ 6-10-3); statutory dower/curtesy is largely abolished but the marital home requires both signatures.

8. Loss Triggers

Abandonment, conveyance, or income changes affecting Exemption III status.

9. Foreclosure & Forced Sale Exceptions

Purchase-money mortgages, property taxes, mechanic's liens, federal liens, and joint judgments override homestead.

This is legal information, not legal advice.