{"id":371333,"date":"2016-03-31T21:34:18","date_gmt":"2016-04-01T02:34:18","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/state\/alabama-law\/alabama-homestead-laws.html"},"modified":"2026-08-04T15:33:47","modified_gmt":"2026-08-04T20:33:47","slug":"alabama-homestead-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/alabama-law\/alabama-homestead-laws.html","title":{"rendered":"Alabama Homestead Laws"},"content":{"rendered":"\n
\n

Alabama Homestead Laws<\/h1>\n\n
\n
\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

Alabama homestead laws shield a primary residence<\/span> from creditors and reduce property tax<\/span> liabilities. To qualify, the home must be your primary residence<\/span> on the first day of your tax year<\/span>. For property tax<\/span> reductions, you must apply to your local county tax<\/span> assessor<\/a> or revenue commissioner<\/span>‘s office.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Alabama homestead laws protect your primary residence<\/span> from certain creditors and can lower your property tax<\/span> bill. The amount of protection you receive depends on whether you\u2019re facing a court judgment, bankruptcy, or a property tax<\/span> bill. Understanding how each system works can help you protect your home.<\/p>\n

If you own a home in Alabama and are facing debt, state law offers two main protections. The creditor exemption can prevent your home from being sold to pay most debts. The property tax<\/span> exemption can lower or remove your property tax<\/span> bill. Each protection works differently depending on your circumstances.<\/p>\n

If you have questions about how Alabama\u2019s homestead laws apply to your situation, consider speaking with an Alabama real estate<\/a> or bankruptcy attorney<\/a>. They can explain your options and help you take the right steps to protect your home.<\/p>\n

Overview of Alabama Homestead Law<\/h2>\n

Alabama\u2019s homestead protections come from two sources. These rules don\u2019t always match up, so it\u2019s important to know which applies to your situation.<\/p>\n

The Alabama Constitution establishes a baseline exemption for homesteads<\/a> of up to 80 acres or for city or town lots valued at up to $2,000. The statutory code is more generous. Under the Code of Alabama<\/span><\/a>, the exemption covers homesteads of up to 160 acres and valued at $15,000.<\/p>\n

Alabama does not use the federal bankruptcy exemption system. If you file for bankruptcy in Alabama, you must use Alabama\u2019s state exemptions<\/a> instead of the federal ones.<\/p>\n

For property tax<\/span> relief, Alabama offers several levels of exemption. Under the Alabama Code<\/a>, the amount of relief you can receive depends on your age, income, or disability status.<\/p>\n

Homestead Exemption<\/span> Limits in Alabama<\/h2>\n

Alabama\u2019s <\/span>homestead exemption<\/span> rules depend on whether you are protecting your home from creditors or seeking property tax<\/span> relief. Let\u2019s take a closer look at both.<\/p>\n

Creditor Protection<\/h3>\n

Alabama\u2019s creditor exemption protects up to $15,000<\/a> in home equity and 160 acres of land from being taken to pay most debts. Married couples who own the home together can each claim the exemption, doubling the protected amount to $30,000 in a joint bankruptcy case.<\/p>\n

Alabama updates its bankruptcy homestead exemption<\/span> every three years to account for inflation. As of April 1, 2024, the exemption is $18,800 per person<\/a>, or $37,600 for married couples filing jointly.<\/p>\n

Federal law adds another timing rule. Any interest in your home that you acquired during the 1,215 days (around 40 months) before filing for bankruptcy is capped at $214,000<\/a>. This figure applies regardless of what Alabama law<\/span> provides and applies to cases filed on or after April 1, 2025.<\/p>\n

The homestead exemption<\/span> safeguards your equity, not the entire appraised value<\/span> of your home. Equity is the value of your home minus the amount you still owe. For instance, if your home is valued at $200,000 and you owe $185,000, your equity is $15,000. This amount falls within Alabama\u2019s standard exemption, preventing a bankruptcy trustee from compelling a sale to settle unsecured debts.<\/p>\n

Alabama also passed a law that expands the exemption for certain homeowners<\/span>. Under HB96<\/a>, which took effect on June 1, 2026, the creditor protection exemption increases to $56,400 for homeowners<\/span> who are 62 years of age<\/span> or older or who qualify as individuals with a disability under state law. If you fall into either category, this higher limit may apply to your situation.<\/p>\n

Property Tax<\/span> Exemptions<\/h3>\n

Alabama’s Department of Revenue<\/a> classifies property tax<\/span> homestead exemptions<\/span> into four tiers based on your circumstances:<\/p>\n\n\n\n\n\n\n
\n

H-1<\/span><\/p>\n<\/td>\n

\n

All Alabama property owners (primary residence)<\/span><\/p>\n<\/td>\n

\n

Up to $4,000 assessed value (state); up to $2,000 assessed value (county)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

H-2<\/span><\/p>\n<\/td>\n

\n

Age 65+ with state adjusted gross income (AGI) of less than $12,000, or permanently and totally disabled regardless of age<\/span><\/p>\n<\/td>\n

\n

All state taxes; county taxes up to $5,000 assessed value<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

H-3<\/span><\/p>\n<\/td>\n

\n

Age 65+ with combined federal taxable income of $12,000 or less, or permanently and total disability regardless of age or income<\/span><\/p>\n<\/td>\n

\n

All state and county property taxes<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

H-4<\/span><\/p>\n<\/td>\n

\n

Age 65+ with Alabama state income tax return income greater than $12,000<\/span><\/p>\n<\/td>\n

\n

Exempt from all state ad valorem taxes; standard $2,000 assessed value exemption on county taxes<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n\n\n\n

No homestead property can exceed 160 acres under any exemption tier.<\/p>\n

Qualifying Property Types<\/strong><\/h3>\n

The Alabama Department of Revenue<\/span><\/a> defines a homestead as a single-family, owner-occupied<\/span> home and the land around it that\u2019s used as your primary residence<\/span>. You must live in the home as your main residence on the first day of the tax year<\/span> to qualify.<\/p>\n

Real property<\/span> that qualifies includes:<\/p>\n