text: homestead exemption in alabama how much does it lower my taxes? i have been told by the tax collectors office that my homestead exemption lowers my taxes by 53.00. is this true? i spoke to a mortgage broker who said that it would lower my taxes by 50%. is this true or false. please help bill the homestead exemption lowers the assessed value of your property up to a maximum of $5,000 as shown in the attached link.  to determine how much that is you need to know the property tax rate where you live.  http://www.revenue.alabama.gov/advalorem/exemptions/40-9-19.pdf