Skip to content
ClosingCodeClosingCode
ENES

Alabama · Ala. Code §§40-7-1, 40-7-2.1, 40-9-19Alabama homestead exemption after buying: reporting the purchase and applying with the tax assessor

A buyer who purchases Alabama real estate before October 1 and owns it on that date reports the purchase to the county tax assessor and assesses the property between October 1 and January 1; there is no penalty for failing to report the purchase (Ala. Code §40-7-1(a)). Under the 1983 Taxpayer Convenience Act, the county tax assessor may accept assessments and homestead exemption applications from January 1 to September 30, effective the following October 1 (§40-7-2.1(b)). The homestead exemption covers state property taxes up to $4,000 of assessed value and 160 acres for an owner not over 65, and county taxes other than school taxes up to $2,000 of assessed value; owners over 65, permanently and totally disabled or blind get a full state exemption (§40-9-19(a)–(b)).

The rules

  1. 1. Report (§40-7-1(a))

    Buyer owning on October 1 reports the purchase October 1–December 31.

  2. 2. Apply (§40-7-2.1(b))

    Assessor may take applications January 1–September 30, effective October 1.

  3. 3. State tax (§40-9-19(a))

    Up to $4,000 assessed value and 160 acres; full for 65+, disabled or blind.

  4. 4. County tax (§40-9-19(b))

    Up to $2,000 assessed value, school taxes excluded.

What the TC can do

  • Send the buyer a post-closing reminder to visit the county tax assessor.
  • Ask the assessor's office which filing window applies in that county.
  • Note that the seller's exemption doesn't carry over to the buyer.

Questions about the Alabama homestead exemption

When does an Alabama buyer report the purchase?

If they bought before October 1 and own the home on that date, between October 1 and January 1 (Ala. Code §40-7-1(a)).

How large is the Alabama homestead exemption?

For state taxes, up to $4,000 of assessed value and 160 acres for owners not over 65; full for owners over 65, disabled or blind (Ala. Code §40-9-19(a)).

Related guides

Add the homestead filing reminder as a post-closing task in ClosingCode.

Start free trial

Source: Code of Alabama §§40-7-1, 40-7-2.1 and 40-9-19 (alison.legislature.state.al.us, read October 28, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.