Are You Missing This Tax-Saving Opportunity?

I received a question from a lady regarding her 87-year-old mother-in-law asking if she qualified for a property tax exemption? OUCH! Her mother-in-law has missed the opportunity to save perhaps hundreds or thousands of dollars over the past twenty-two years.

Here’s an excerpt taken directly from the State of Alabama web site:


If you are over 65 years of age or permanent and totally disabled (regardless of age) or blind (regardless of age), you are exempt from the state portion of property tax. County taxes may still be due. Please contact your local taxing official to claim your homestead exemption.

One of my partners, Michael Wagner, CPA, adds, “You have to claim the deduction proactively and every year return a postcard stating you are over 65 and still own the home.”  You need to apply for the exemption through your county tax assessor’s office.  Here’s a link to every county: CLICK HERE

The bad news is that you cannot ‘go back’ and get credit for state property taxes paid in prior years when you were eligible for the exemption.  In other words, it’s a ‘use it or lose it’ proposition.  If you know someone age sixty-five or older, be their hero and remind them of this opportunity.

Follow The Welch Group every Tuesday morning on WBRC Fox 6 for the Money Tuesday segment.


Age 65? File for Property Tax Exemption

  •  Must be age 65 or
  • Totally disabled
  • Exemption: State portion of property tax
  • Apply through your county tax assessor’s office
  • Annual acknowledgement (postcard) still own home


Stewart H. Welch, III, CFP, AEP, is the founder of THE WELCH GROUP, LLC, which specializes in providing fee-only investment management and financial advice to families throughout the United States. He is the author or co-author of six books, including  J.K. Lasser’s New Rules for Estate, Retirement and Tax Planning- 6th Edition (John Wiley & Sons, Inc.); THINK Like a Self-Made Millionaire; and 100 Tips for Creating a Champagne Retirement on a Shoestring Budget. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by The Welch Group, LLC (“Welch”), or any non-investment related content, made reference to directly or indirectly in this article will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. More information about The Welch Group and important Disclosures can be found on our website. Consult your financial advisor before acting on comments in this article.