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Alabama property taxes

Varies

Are Property Taxes Deductible in Alabama?

Short answer: Yes on your federal return if you itemize, within the $40,400 SALT cap. Alabama adds its own break: Homeowners 65+, disabled, or blind pay no state-levied property tax; 65+ with AGI under $12,000 also get a larger county exemption.

Homestead: exempts up to $4,000 of assessed value from state property tax (under 65) and $2,000 from county tax; claim with your county. Alabama assesses homes at 10% of value, so the $4,000 state exemption covers about $40,000 of market value.

Records to keep: Keep receipts, statements, and a note of what each cost was for. Compare itemizing to the 2026 standard deduction ($16,100 single / $32,200 joint) before you claim.