Veterans with service-connected disabilities can qualify for tax benefits in most states. These benefits often give relief on property taxes by adjusting the property’s assessed value.
Every state has its own set of eligibility criteria and rules. Some states may require disabled veterans to provide proof of their disability status from the Department of Veterans Affairs. In certain cases, the qualifying veteran may need to register for these property tax exemptions annually.
It’s crucial to stay informed because state tax laws can change over time. Consulting a tax professional for the most up-to-date information on your state’s property tax exemptions is a wise step.
States Awarding Full Property Tax Exemptions for Disabled Veterans
Many states have taken the commendable step to honor and support honorably discharged veterans who have 100% permanent and total service-connected disability ratings issued by the Department of Veterans Affairs. These states award full homestead exemptions for the primary residences of qualifying disabled veterans.
A veteran qualifies for the full property tax exemption if:
- The disabled veteran was honorably discharged from any branch of the U.S. Armed Forces.
- They have a 100% permanent and total service-connected disability rating (100% P&T) certified by the Department of Veterans Affairs.
- The veteran owns and occupies a primary residence in the state to which they are applying for the homestead exemption.
Additionally, these states extend this invaluable benefit to the surviving spouses of these disabled veterans if:
- The surviving spouse remains unmarried.
- The surviving spouse maintains continuous occupancy in the property following the disabled veteran’s passing.
These are the states that offer full property tax exemptions to qualified veterans with a 100% permanent and total disability rating from the VA as described above:
- New Jersey
- New Mexico
- Wisconsin (after a 5-year residency)
The following states offer full property tax exemptions to totally disabled veterans with some modifications to the requirements or benefits.
Veterans are eligible for exemption from ad valorem taxes on their primary residence and the adjacent 160 acres of land.
Source: Alabama Department of Revenue
Arkansas extends property tax exemptions to veterans who have been awarded special VA compensation for the loss of one or more limbs or total blindness in one or both eyes.
Surviving spouses who remarry and subsequently end that marriage are eligible to have the previous property tax exemption reinstated.
Paraplegic or hemiplegic veterans dependent on a wheelchair for mobility or veterans who are legally blind may also qualify for property tax exemptions.
Veterans with a VA-certified service-connected disability of 10% or more may qualify for a partial exemption. Consulting with a Florida CPA firm like Alpine Mar can help you determine your eligibility.
The primary residence of a surviving spouse of a service member who died from service-related causes during active duty is also tax-exempt.
Veterans are only required to have a 70% or higher service-connected VA disability rating to qualify as exempt from paying property taxes on their primary residences.
Source: Illinois Department of Revenue
Iowa’s property tax exemption also covers up to 40 acres surrounding the primary residence.
If the surviving spouse remarries, they still qualify for the credit if they receive DIC (Dependency and Indemnity Compensation) payments.
Source: Iowa Department of Revenue
Veterans with a 100% unemployability rating from the VA also qualify for a full property tax exemption.
Veterans also receive property tax exemptions on their primary residence if one of the following applies:
- They receive pecuniary assistance for specially adapted housing due to disability certified by the VA.
- They have a VA rating of 100% TDIU for individual unemployability.
Source: Michigan Department of Treasury
The property tax exemption also applies to veterans who are blind, paraplegic, or double amputees due to service-related reasons. Additionally, a disabled veteran qualifies if they own a specially adapted homestead obtained with assistance from the U.S. Department of Veterans Affairs.
Eligible veterans receive property tax exemptions on their primary residences including up to five acres of surrounding land.
A qualified veteran may receive full tax exemption for up to two privately owned or leased passenger vehicles.
Texas veterans may qualify for property tax exemptions if they have a 100% schedular VA rating or a 100% individual unemployability (TDIU) VA rating.
Veterans may also qualify for homestead property tax exemptions if they have a 100% VA rating for individual unemployability (TDIU).
Exemptions apply to the primary residence and up to one acre of land.
States With Limited Property Tax Exemptions
These states offer limited property tax exemptions to qualifying veterans.
Veterans with a VA or military disability of 50% or more are exempt from property taxes on the initial $150,000 of their home’s assessed value.
Property tax exemptions for veterans differ by county.
Contact your county assessor’s office for specific details (source document, page 28).
California’s Disabled Veterans’ Exemption also applies to disabled veterans who as a result of their military service are blind in both eyes or have sustained a loss of two or more limbs.
In 2024, the basic exemption amount is capped at $169,769 with no limitations on income. There is also a low-income exemption of $254,656 with a qualifying low-income household limit of $76,235.
Qualified veterans with a 100% disability rating can get a property tax exemption of 50% on the first $200,000 of their primary residence’s full value.
Veterans residing in Delaware for over three years can receive a tax credit that covers 100% of non-vocational school district property tax exemptions on their primary residences. Disabled veterans with a 100% individual unemployability rating (TDIU) also qualify for the tax exemption.
Source: Delaware Department of Finance
District of Columbia
The property tax exemption is capped at a property value of $445,000 and eligibility is determined by income levels.
Disabled veterans can qualify for property tax exemptions if they have a 100% individual unemployability (TDIU) rating or have suffered a permanent loss or loss of use of limbs or eyes.
Veterans who qualify may receive an exemption of up to $109,986, determined by the index rate set by the United States Secretary of Veterans Affairs as per 38 U.S.C. 2102.
This property tax benefit for disabled veterans can lower the property taxes by up to $1,500 for their primary residence including one acre of land.
A disabled veteran’s surviving spouse can’t transfer the tax credit to a new property after the veteran’s passing.
Source: Idaho State Tax Commission
Veterans can apply for property tax relief if they have a 50% or greater disability rating. An annual household income of $50,000 or less applies, and the primary residence can’t be valued at more than $350,000 in the tax year. The maximum property tax refund is $700.
Source: Kansas Department of Revenue
Qualifying veterans may be awarded property tax exemptions up to $46,350 against their primary residence.
Source: Kentucky Department of Revenue
Property tax exemptions of $6,000 are available to qualifying disabled veterans. Paraplegic veterans with federal grant assistance for specially adapted housing may receive an exemption of $50,000.
Source: Maine Revenue Services
Qualified veterans with a 100% disability rating are eligible for an exclusion of $300,000. Veterans with a 70% or higher disability rating can apply for a $150,000 exclusion.
Source: Minnesota House Research
Missouri offers disabled veterans a maximum property tax credit of $1,000 to homeowners and a maximum of $750 to renters.
Source: Missouri Department of Revenue
Although not specific to disabled veterans, all veterans who have served in the U.S. military can benefit from three property tax exemptions:
- Alternative Veterans’ Exemption
- Cold War Veterans’ Exemption
- Eligible Funds Exemption
These exemptions apply to county, city, town, and village taxes, with potential exemptions for school district taxes as well.
Veterans also may qualify if they receive benefits for specially adapted housing. The property tax exemption amounts apply to the first $45,000 of the assessed real property value.
Veterans are eligible for a property tax exemption on the first $50,000 of their primary residence including land up to one acre.
Surviving spouses must be at least 59 years old when the qualifying veteran passes. Remarriage of the surviving spouse does not disqualify them from receiving the property tax exemption.
Source: Ohio Department of Taxation
This benefit also applies to disabled veterans who due to military service are blind, sustained a loss of two or more limbs, or are paraplegic veterans.
Applicants must demonstrate financial need, and as of 2023, those with an annual income of $108,046 or less are presumed to meet the need for the exemption.
This program provides an exemption for up to $150,000 of the assessed property value for eligible disabled veterans.
Veterans also qualify for property tax exemptions if they have paralysis, loss of at least two limbs, blindness, or have a 100% permanent disability rating due to being former prisoners of war.
Tax relief is calculated based on a maximum market value of $175,000.
Utah’s property tax reduction depends on the disabled veteran’s disability rating, with a maximum exemption of $275,699 for those with a 100% service-connected disability.
The calculation is located on page 4 of the source document.
Veterans with a disability rating of 50% or higher may be eligible for a property tax exemption on their primary residence. The state ensures a minimum exemption of $10,000 for veterans, and towns have the option to increase the exemption to a maximum of $40,000.
Source: Vermont Department of Taxes
Qualifying veterans who have resided in West Virginia for two consecutive tax years don’t pay property taxes on the initial $20,000 of their primary residence’s assessed value.
Veterans who have lived in Wyoming for a minimum of three years can benefit from a property tax exemption of up to $3,000 on the assessed value of their primary residence.
Source: Wyoming Department of Revenue
States With Property Tax Exemptions on Sliding Scales
These states offer exemptions based on the veteran’s disability rating.
Veterans with at least a 10% disability rating are eligible for state-mandated property tax exemptions on a sliding scale.
For example, a partially disabled veteran with a 51%–75% disability rating from the VA is eligible for a $3,000 property tax exemption.
The full property tax exemption table can be found on page 7 of the source document.
Source: Office of Legislative Research
Veterans with at least a 50% disability rating are eligible for a state-mandated property tax exemption on a sliding scale.
For example, a disabled veteran with a 60% VA disability rating is eligible for a property tax exemption equal to 60% of the assessed value.
If the qualified disabled veteran does not own property, the tax credit can be applied to a maximum of two motor vehicles.
Consult the source document for the full list of tax exemption amounts.
Massachusetts has an extensive program for property tax exemptions for veterans starting at a 10% disability rating and rising to the full 100% rating.
A detailed table of these tax exemptions can be found on page 3 of the source document.
Veterans receive a reduction in their property taxes based on marriage status and income.
For example, a single disabled veteran with a household income under $45,803 can qualify for a 100% reduction for the 2024 tax year.
Consult the source document for a detailed table showing marriage status and maximum income levels.
Veterans with a minimum of 60% disability rating from the VA receive property tax exemptions based on their level of service-connected disability.
For example, in the 2023/24 fiscal year, a veteran with an 80%–99% disability rating will receive a property tax exemption of $25,050.
Consult the source document for the detailed benefit table.
Source: Clark County, Nevada
Veterans with a minimum of a 50% disability rating may qualify for the disabled veteran’s property tax credit.
For example, qualifying veterans with a 70% disability rating may receive a maximum reduction of $5,670.
Consult the source document for the complete reduction table.
Veterans with a disability rating of 40% or higher may qualify for a property tax exemption. The exemption amounts, which depend on income, are $24,793 and $29,753 for 2023.
Source: Oregon Department of Revenue
Property tax exemption amounts differ widely based on the county, property value, and the specific exemption category applicable to the disabled veteran.
Consult the source document for detailed information.
Washington offers property tax relief for veterans with an 80% or higher disability rating. The property tax relief amount depends on income, the total assessed value of the primary residence, and local levy rates.
Consult the source document for various scenarios with calculations.
Understand Your Eligibility With Professional Advice
Property tax exemptions for disabled veterans vary from state to state, offering crucial financial relief to those who have served our nation. Veterans need to find out about their eligibility and the specific requirements in their respective states.
Consulting with a tax professional is advisable to make sure that you or the veteran in your life receives the most up-to-date and accurate information on these valuable benefits. Thresholds and eligibility can change from year to year, and staying informed is the best way to ensure the maximum available property tax savings.