Disabled veterans have many tax breaks and discounts offered to them; in most states these service members also have the option of using some form of property tax break offered on the basis of having a service-connected disability.
Not all states offer the same tax breaks, and the qualifying criteria for such tax relief will also vary, but it pays to look into your options where state property taxes are concerned since qualifying veterans and their spouses (where applicable) can save literally thousands of dollars at tax time.
Certain property tax exemptions may focus on the disability rather than the applicant’s status as a veteran; other exemptions may be dependent on having a VA-rated disability. Some states may require the veteran to register once for a certain tax benefit, others may require annual re-certification.
Not all tax exemptions or tax relief applies to all veterans or to all veterans with a disability. The qualifying criteria will vary depending on the state.
It’s important to remember that tax laws are always subject to change; discuss your state’s tax exemptions for the current tax year with a professional to make sure the past year’s exemptions or other tax benefit will apply in the current tax year.
Property Tax Exemptions For Disabled Veterans By State
Alabama Ad Valorem Tax Exemption
Not limited to veterans only, this Alabama State tax break exempts qualified applicants from ad valorem taxation of a home and “an adjacent 160 acres” for those who are permanently and totally disabled, or who is 65 years of age or older and has a net annual income of $12,000.00 or less for income tax purposes from the previous year.
Alabama State Tax Breaks For Specially Adapted Housing For Veterans
Another Alabama tax break allows ad valorem tax exemption for the home of veterans who used a specially adapted housing grant to modify the home as long as that home is “owned and occupied as a home by the veteran or his/her un-remarried widow/er.”
Alaska Property Tax Exemption
Veterans who are VA-rated as 50 percent disabled or more are exempt from Alaska taxation on “the first $150,000.00 of assessed valuation.” This tax exemption may be transferred to a surviving spouse if the veteran passes away and the spouse is at least 60 years old.
Arizona Property Tax Exemption
Disabled veterans in Arizona may qualify for a property tax exemption of $3,000 on his/her primary residence as long as the total assessed value does not exceed $10,000.
Arkansas Property Tax Exemptions
Disabled veterans in Arkansas may qualify for a “full property tax exemption on his/her primary residence” if the veteran is rated as blind in one or both eyes, or has lost the use of one or more limbs, or is 100 percent permanently and totally disabled as a result of military service.
California Property Tax Exemptions
The State of California provides tax exemptions for disabled veterans in two basic categories. One is a low-income category, the other is a “basic” exemption. The property tax break is known as the California Disabled Veterans’ Exemption and is intended for those who are VA rated at 100%, “or are being compensated at the 100% rate due to unemployability.” An unmarried surviving spouse of a qualified veteran may also qualify. The amount of exemption may vary depending on the tax year and other factors.
Colorado Property Tax Exemption
Fifty percent of the first $200,000 in actual property value is exempt from Colorado property taxation for permanently disabled veterans. The State of Colorado official site states that VA unemployability awards “do not meet the requirement for determining an applicant’s eligibility.” These property tax breaks for disabled Colorado veterans are for primary residences only.
Connecticut Property Tax Exemption
Honorably discharged veterans in Connecticut may qualify for a property tax exemption of $1,500 “from the total assessed value” of the home, which must be a primary residence. This exemption is for any veteran who has served at least 90 days of active duty during wartime. Veterans who fall below a specified income level or who are disabled may qualify for added property tax breaks.
Delaware Property Tax Exemption
At the time of this writing no state-mandated property tax exemptions exist for disabled veterans in the State of Delaware. Tax laws change frequently, it’s best to ask before filing taxes in a given year to see if this situation has changed. Certain counties in Delaware may offer tax exemptions similar to the one offered in New Castle County, where vets with incomes at or below a certain limit ($50 thousand a year at the time of this writing) and a permanent disability may qualify for property tax breaks to be determined by the county.
Florida Property Tax Exemptions
A disabled veteran in Florida may receive a property tax discount on a primary residence based on the amount of disability the applicant is VA-rated at; there are also provisions made for qualifying surviving spouses of the veteran for the same type of property tax benefit. There are a variety of other property tax benefits, but one of the important ones is the Florida Homestead Tax Exemption For Veterans (disabled or not) that exempts all property taxes on any veteran-owned primary residence. Residency is required.
Georgia Property Tax Exemptions
Disabled Georgia vets with qualifying disabilities (100% VA ratings, loss or loss of use of hands, feet, eyesight, etc) may receive a property tax exemption up to $60,000 for a primary residence. Surviving spouses and surviving children may also be eligible for this property tax exemption.
Hawaii Property Tax Exemption
A totally disabled veteran may be eligible to apply for a full Hawaii state property tax exemption on a primary residence.
Idaho Property Tax Exemption
Idaho veterans with VA-rated disabilities of 10% or higher may be eligible to receive a property tax exemption up to $1,320 on a primary residence. This tax break is income-based.
Illinois Property Tax Exemptions
Qualifying Illinois veterans who have VA-rated disabilities (30% minimum) can qualify for property tax exemptions on a sliding scale based on the percentage of the disability rating. VA-rated disabilities at 70% or higher are eligible for a full property tax exemption on a qualifying primary residence. There are similar property tax breaks for those veterans who own specially adapted housing in Illinois.
Indiana Property Tax Exemptions
Qualifying veterans with wartime service and at least a 10% VA disability rating can apply for property tax exemption for primary residences; there is a maximum benefit of up to $24,960. There is a class of Indiana disabled veteran property tax breaks that are based on the percentage of the veteran’s disability rating in cases where a home was provided at no cost to the veteran by an organization exempt from taxation.
Iowa Property Tax Exemptions
The State of Iowa passed laws in 2014 allowing a 100% exemption on state property taxes for VA-rated 100% disabled service-connected veterans, and those who receive VA benefits under the Dependency and Indemnity Compensation program.
Kansas Property Tax Refund
Since 2009, Kansas state residents who are veterans with a VA disability rating of 50% or more may apply for a “Homestead Refund” that is also applicable to qualifying surviving spouses who are not remarried. The amount of refund may be affected by the percentage amount of disability reported.
Kentucky Property Tax Exemptions
Disabled veterans are eligible for the same homestead tax break that Kentucky residents aged 65 and older (or who are declared as totally disabled as determined by a government agency in-state) get. This tax break is a property tax exemption of up to $37,600 (at the time of this writing) for primary residences. Unlike non-disabled veterans applying for this benefit, those rated by the Department of Veterans Affairs as permanently and totally disabled do not have to reapply for the benefit each year.
Louisiana Property Tax Exemptions
Thanks to legislature known as Amendment 7, VA-rated 100% service-connected disabled veterans living in Louisiana may receive a property tax exemption of up to the first $150,000 of the assessed value of a primary residence. The same exemption applies to those deemed as 100% unemployable.
Maine Property Tax Exemptions
A Maine resident who is VA-rated at 100% disabled is eligible to apply for a $6,000 property tax benefit. A paraplegic veteran who received a federal grant for specially adapted housing may apply for a property tax benefit worth $50,000.
Maryland Property Tax Exemptions
Maryland resident veterans with a 100% VA disability rating may be completely exempt from all property taxes on a primary residence and the surrounding yard. Veterans can apply for this benefit at any time rather than being required to wait until a certain application period. Surviving spouses may also be eligible for the same benefit.
Massachusetts Property Tax Exemptions
Massachusetts offers several property tax exemption options for those who have VA-rated disabilities. There is a minimum 10% VA rating required and the veteran must have been a state resident for at least six months before starting military service and reside in the state for a minimum of five years. Exemption amounts range from $400 at the lowest level at the time of this writing to $1,500 for veterans who are rated as 100% disabled.
Michigan Property Tax Exemptions
VA-rated 100% disabled veterans in Michigan may receive a full property tax exemption on primary residences. This break also applies to those who are rated Individually Unemployable and those who receive assistance (due to the disability) for specially adapted housing.
Minnesota Property Tax Exemptions
In the State of Minnesota, veterans rated as 100% totally and permanently disabled may be eligible for a property tax valuation exclusion up to $300,000. Those with disability ratings at 70% or higher may be eligible for the same consideration at a maximum of $150,000. Veterans who do not own a home but have designated a primary family care provider may elect to allow the caregiver this tax break for the duration of the time the caregiver works in that capacity.
Mississippi Property Tax Exemptions
A disabled veteran in Mississippi may be considered exempt from taxes on the first $75,000 off the “true value” of a primary residence. This exemption applies to all disabled residents who meet the qualifying criteria, not just disabled veterans or surviving spouses. Additional exemptions may apply for some qualifying veterans.
Missouri Property Tax Exemption
100 percent disabled Missouri residents can be credited “for a portion of the real estate taxes or rent they have paid for the year” for a maximum of $1,100 for primary residences. The actual tax exemption amount is determined based on the amount of real estate taxes or rent paid and total household income.
Montana Property Tax Exemptions
A program called Montana Disabled Veterans Assistance offers property tax reductions for those who are VA-rated at 100% service-connected disability. This benefit is income-based and the tax break ranges for 50% to 100% exempt depending on factors including marital status and income level.
Nebraska Property Tax Exemption
Disabled veterans who are Nebraska state residents in one of several categories (including wartime service) may be eligible for several income-based and non-income-based property tax relief plans. Totally disabled veterans have the option to apply for non-income based tax relief as well as other programs they may qualify for. In many cases surviving spouses may be eligible to apply. These tax exemptions are for primary residences.
Nevada Property Tax Exemption
The Nevada State Disabled Veterans Exemption is offered to qualifying veterans with a permanent service-connected disability of at least 60%. Applicants will have their property tax exemption based on the percentage of disability and must submit documentation of the percentage of permanent service-connected disability from the Veteran’s Administration or from the Armed Forces of the United States. Surviving spouses may also qualify depending on circumstances.
New Hampshire Property Tax Exemptions
A permanently and totally disabled veteran with qualifying service-connected medical conditions (blindness, veterans who are paraplegic, or double amputees ) and who is the owner of a primary residence that has been specially adapted and purchased with the assistance of the U.S. Department of Veterans Affairs “shall be exempt from all taxation on the homestead.” Cities and towns may vote to adopt a higher tax credit of up to $4000.
Surviving spouses may also qualify. Certain wartime veterans, their wives or widows may be eligible for a property tax credit of $51 ($100 if both are eligible veterans). Cities/towns may vote to adopt a higher tax credit of up to $750. The widow of a veteran who was killed while on active duty in the military may be eligible for a tax credit of between $700 and $4000 on real estate or personal property.
New Jersey Property Tax Exemptions
100% disabled New Jersey veterans may be eligible for a 100% property tax exemption on their primary residence. Surviving spouses may also qualify depending on circumstances.
New Mexico Property Tax Exemption
Any New Mexico state resident veteran with a 100% VA disability rating may be eligible to apply for a complete waiver of all property taxes on a primary residence.
New York Property Tax Exemptions
New York veterans may be eligible for one of three property tax exemptions for a veteran-owned primary residence. Most of the exemptions are not specifically aimed at disabled veterans, but additional discounts or considerations apply for those with VA-rated disabilities.
North Carolina Property Tax Exemptions
North Carolina veterans who have 100% VA-rated disabilities may be eligible for a property tax break on the first $45,000 of assessed real property value. In cases where there are co-owners/spouses individually eligible for the benefit, the veteran(s) can receive the total exemption of $90,000.
North Dakota Property Tax Exemption
North Dakota veterans with at least a 50% service-connected VA disability rating may qualify for a property tax exemption for the first $120,000 on a primary residence.
Ohio Property Tax Exemptions
100% service-connected disabled Ohio veterans may be eligible for a property tax exemption up to $50,000 for primary residences. Surviving spouses of qualifying veterans may also be eligible to apply if they inherit or otherwise own the home eligible for the exemption.
Oklahoma Property Tax Exemptions
A VA-rated 100% service-connected disabled Oklahoma veteran is eligible for a property tax exemption based on the “full fair cash value” of a primary residence. There are also further tax breaks offered to qualifying veterans for sales taxes, excise taxes, and ad valorem taxes.
Oregon Property Tax Exemption
Qualifying disabled veterans and surviving spouse in Oregon are eligible to apply for an income-based Oregon property tax exemption if the disability is service-connected and is 40% or higher. This exemption is for primary residences only.
Pennsylvania Property Tax Exemptions
The State of Pennsylvania offers a need-based, income-qualifying property tax exemption for primary residences when the veteran is 100 percent disabled as a result of wartime service.
Rhode Island Property Tax Exemptions
Certain qualifying disabled Rhode Island veterans including ex-prisoners of war, Gold Star families, and those who have specially adapted housing may receive a property tax exemption for primary residences. These Rhode Island property tax exemptions will vary depending on location, property value, and the exemption category the veteran qualifies for.
South Carolina Property Tax Exemption
A full property tax exemption is available to qualifying South Carolina veterans and surviving spouses in cases where the veteran is VA-rated at 100% as a result of military service. This property tax exemption is transferable when the veteran buys a new home as a primary residence.
South Dakota Property Tax Exemptions
VA-rated disabled veteran who are South Dakota residents may qualify for property tax exemptions of up to $100,000 on a primary residence. The veteran must be 100% disabled as the result of military service. Paraplegic veterans qualify for a full property tax exemption.
Tennessee Property Tax Exemptions
Disabled veterans paying taxes in the State of Tennessee may qualify for a state property tax exemption on the first $100,000 of his/her primary residence if the veteran is VA-rated 100% disabled or meets the following criteria:
- Permanent paralysis of both legs and lower part of the body resulting from traumatic injury or disease to the spinal cord or brain;
- Loss, or loss of use of two or more limbs;
- Legal blindness
Unremarried surviving spouses of qualifying veterans may also be eligible for property tax exemptions for primary residences.
Texas Property Tax Exemptions
Texas veterans with VA disability ratings between 10% and 100% may qualify for property tax exemptions starting at $5,000 for 10%-29% disability and ending at a full exemption for those VA-rated as 100% disabled. Those over the age of 65 may also qualify for additional property tax exemption programs.
Utah Property Tax Exemption
Disabled vets with a VA rating of 10% or higher who reside in Utah may qualify for a property tax exemption on a primary residence. Utah state law maintains that in such cases the maximum taxable value of a property is $260,370.
Active duty armed forces personnel may qualify for property tax exemption if they are stationed outside the USA for a minimum duration which may be subject to change depending on current tax laws in the state.
Vermont Property Tax Exemption
Va-rated disabled veterans in Vermont who are rated at least 50% disabled may qualify for a property tax exemption of at least $10,000 on a primary residence. The actual amount of the exemption may not exceed $40,000 and there may be different levels of exemption depending on location.
The following veterans are considered eligible;
- Those receiving VA Disability Compensation at a rating of 50% or higher;
- Recipients of a Non-Service Connected Pension, AKA the “Improved Pension”;
- Those receiving permanent military retirement pay for a medical retirement;
- Surviving spouses of veterans who had received the exemption;
Surviving spouses may also be eligible for Dependency and Indemnity Compensation or Death Pension.
Virginia Property Tax Exemption
VA-rated 100% service-connected disabled veterans may qualify for a full exemption on Virginia state property taxes on a primary residence.
Washington Property Tax Exemption
Disabled veterans in the State of Washington may qualify for need-based property tax exemptions on a primary residence provided there is a 100% service-connected disability rating. Applicants with less than a 100% VA disability rating may qualify for a partial exemption.
West Virginia Property Tax Exemption
100% disabled veterans may be exempt from property taxes on the first $20 thousand of assessed value on a primary residence that is owner-occupied.
Wisconsin Property Tax Exemption
VA-rated 100% disabled veterans or their surviving spouses in the State of Wisconsin may qualify for property tax credits on a primary residence. The veteran must have been a state resident upon entry into military service or for a five-year period after beginning military service. The amount of the property tax exemption is defined in each tax year.
Wyoming Property Tax Exemption
Disabled veterans in Wyoming may qualify for a property tax exemption of $3,000 of the assessed value of a primary residence. The veteran must be a state resident for at least three years at application time. If the property tax exemption is not used towards a home, it may be alternatively applied toward a motor vehicle license fee.
District of Columbia Property Tax Exemption
Vets and other state residents over the age of 65 or who are disabled may qualify for a 50% property tax exemption in the District of Columbia. There is an income-based requirement; the veteran must own at least half the property and annual income cannot exceed a set limit which may be subject to change.