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What Is the Disability Property Tax Exemption?


Jul 01, 2020 by Aly J. Yale

Many states offer property tax exemptions for disabled homeowners, which can reduce the homeowner's annual tax burden significantly.

Disabled veterans generally qualify for some sort of exemption at the state level. If you're not a veteran but qualify for Social Security disability payments, you may also qualify for an exemption in some states.

If you're a disabled or partially disabled home or property owner, use this guide to determine whether your state has property tax exemptions you may be able to take advantage of.

What is a disability property tax exemption?

Disability property tax exemptions reduce the property tax burden for disabled homeowners. They essentially lower a home's taxable value (a general homestead exemption lowers property taxes by $10,000 here in Texas, for example), which in turn decreases the annual taxes the homeowner owes on the property.

There is no single disability property tax break that homeowners can qualify for. Instead, tax exemptions are set at the state and local levels. To understand what options you might have at your disposal in your area, we've covered the basics for each state.

State-by-state disability property tax exemptions

Every state has slightly different exemptions available. Though the below is a comprehensive list of what may be available to disabled homeowners in your area. Always double-check with your local appraisal district to be extra sure you're leveraging all exemptions you might qualify for.

Alabama

In Alabama, homeowners who are retired due to a permanent and total disability qualify for an H-2 property tax exemption. This exemption offers a full exemption from state property taxes and reduces a property's value by $5,000 on all county and school district taxes. You must be retired due to your disability.

Totally disabled homeowners also qualify for an H-3 exemption, which exempts them from all taxes on properties up to 160 acres. In both cases, homeowners must provide a physician's affidavit confirming their disability.

Alaska

Alaska military veterans with at least a 50% disability due to their service qualify for a complete exemption of all property taxes on up to $150,000 of assessed value. Widows and widowers of disabled veterans who are at least 60 years old can also leverage this exemption.

There is no exemption for nonmilitary homeowners with a disability.

Arizona

Arizona has property tax exemptions for both 100% disabled homeowners and widows/widowers of these residents. Those who qualify are exempt on up to $27,498 of assessed value. The homeowners must also make below $33,722 as a household or $40,456 if a dependent lives on the property. Disabilities must be certified by a doctor.

Disabled veterans and their widows/widowers can also qualify for an exemption of up to $3,000, as long their assessed value is $10,000 or less.

Arkansas

In Arkansas, veterans who experienced the loss of one or more limbs, are blind, or suffered a 100% service-related disability are exempt from all property taxes. Widows, widowers, and dependents of veterans who were killed in service, perished in the line of duty or due to service-related injuries, or who were prisoners of war are also able to leverage this exemption.

There are no exemptions in Arkansas for nonmilitary disabled homeowners.

California

Disabled veterans in California may qualify for either basic or low-income property tax exemptions. They must be rated 100% disabled by the Department of Veterans Affairs due to a service-related illness or injury. For the basic exemption, veterans will not pay taxes on the first $134,706 of their home's assessed value. For low-income veterans, the exemption goes up to $202,060. The household income limit is $60,490 for this exemption.

In California, there are no exemptions for nonmilitary disabled homeowners.

Colorado

In Colorado, there are property tax exemptions for 100% disabled veterans, as rated by the Department of Veterans Affairs. The exemption reduces the veteran's home's assessed value by 50% off the first $200,000.

There are currently no exemptions for nonmilitary disabled homeowners in the state.

Connecticut

Disabled homeowners in Connecticut are eligible for a $1,000 property tax exemption. To qualify, the homeowner must be 1) eligible to receive total disability benefits from the Social Security Administration, 2) 65 or older and no longer able to receive Social Security disability benefits, or 3) eligible for permanent disability benefits from a state, federal, or local retirement plan.

Blind homeowners are also eligible for an additional exemption worth $3,000. Municipalities may choose to add up to $2,000 more to this exemption.

Finally, disabled veterans have an exemption of their own, qualifying them for up to $3,000 in reduced assessed value. Veterans with a household income of under $18,000 (single) or $21,000 (married) qualify for another 50% more. If veterans are severely disabled (loss of both legs, permanent paralysis of one leg and one arm, total blindness, or disabilities associated with amputations due to service), there's the opportunity for an additional $5,000 exemption. Those under a certain income threshold qualify for 50% more.

Delaware

Delaware is one of the few states that has no property tax exemptions for either disabled homeowners or disabled veterans. The only property tax exemption in the state is for homeowners 65 and older.

Florida

The state of Florida has several property tax disability exemptions. Homeowners who are quadriplegic are exempt from all property taxes in the state. Those who are legally blind, paraplegic, hemiplegic, or totally and permanently disabled but able to use a wheelchair also qualify if their income is below the limit for their county. Blind and totally disabled homeowners are also eligible for an additional $500.

Veterans who are disabled at least 10% are exempted on up to $5,000 in property taxes while those with a total and permanent disability related to their service are exempt on all taxes. Senior-aged veterans who are partially or totally disabled also qualify for exemptions, though these vary based on the disability.

Georgia

The only disabled property tax exemption in the state of Georgia is reserved for veterans. Disabled veterans qualify for up to a $60,000 exemption, plus an additional amount determined by the Department of Veterans Affairs. The most recent additional sum was $85,645.

To qualify, veterans must be honorably discharged and be rated 100% disabled, entitled to 100% rated pay, or be entitled to statutory awards for the loss (or loss of use) of one or both feet, one or both hands, or one or both eyes. There are currently no exemptions available for nonmilitary disabled homeowners in Georgia.

Hawaii

Hawaii has property tax exemptions for both disabled veterans and nonmilitary disabled homeowners. Veterans who are 100% disabled are entitled to a full exemption from property taxes while blind, deaf, or totally disabled homeowners receive a $50,000 exemption. Homeowners who suffer from Hansen's Disease also qualify for a $50,000 property tax exemption.

Idaho

Idaho's only disability property tax exemption is reserved for military veterans. The exemption offers up a $1,320 reduction of property taxes for veterans who are 100% disabled due to service-related illness or injury. There is no income limit for the program.

Currently, the state of Idaho has no property tax exemptions for disabled, non-veteran homeowners.

Illinois

The state of Illinois offers exemptions for both homeowners and veterans with disabilities. For veterans, the exemption amount depends on the severity of the disability, ranging from $2,500 for 30% to 50% disabilities to $5,000 for those with 50% to 70% disabilities. Veterans who are 100% disabled pay no property taxes at all on up to $250,000 in assessed home value.

There are currently no exemptions for nonmilitary disabled homeowners in the state of Illinois.

Indiana

Indiana offers property tax exemptions for disabled homeowners and disabled veterans. Homeowners who are blind or totally disabled can see their assessed value reduced by up to $12,480. For disabled veterans, the exemption is up to $24,960. Veterans must have a service-related disability of at least 10%.

Iowa

Iowa doesn't have any property tax exemptions for disabled persons, but it does have tax credits. The first is the Disabled Veteran's Homestead Tax Credit, which offers veterans with a 100% service-related disability a tax credit worth the full amount of their tax bill. The Senior and Disabled Citizens tax credit is similar, offering a one-to-one tax credit for those who qualify.

Kansas

Kansas is similar to Iowa in that it doesn't have any exemptions, but it does offer what are called "refunds." These are available for disabled veterans who have at least a 50% disability due to service and who were honorably discharged. The maximum refund is $700 and is only available on properties valued at $350,000 or less. There are no exemptions or refunds for nonmilitary disabled homeowners in the state of Kansas.

Kentucky

Kentucky offers homestead exemptions for homeowners who are totally disabled, as determined by a government agency or retirement system. Disabled veterans are also eligible for this exemption, which offers up $39,300 in reduced assessed value.

Louisiana

In Louisiana, there are property tax exemptions for disabled veterans. Veterans must have a 100% disability rating due to a service-related disability. Those who qualify will pay no property taxes in the state.

Nonmilitary homeowners with a 100% disability and veterans with a 50% or greater disability may also qualify for a special assessment if they make under a certain income level.

Maine

Maine has a variety of property tax exemptions for disabled homeowners. Blind homeowners can receive a $4,000 exemption, while veterans who are receiving 100% disability are eligible for up to $6,000. Paraplegic veterans who receive a Specially Adapted Housing grant can qualify for a $50,000 exemption.

Maryland

In Maryland, disabled veterans are fully exempt from all property taxes if they are rated 100% disabled by the Department of Veterans Affairs. A surviving spouse may also be eligible for these benefits in some cases.

Currently, there are no exemptions for disabled, nonmilitary homeowners in the state of Maryland.

Massachusetts

The state of Massachusetts has two property tax exemptions for disabled persons. The first is an exemption for blind homeowners worth $500. Homeowners must be legally blind (with proof of that blindness) in order to qualify. Disabled veterans are also eligible for an exemption of up to $1,500 (if 100% disabled). For veterans with lesser disabilities (10% and up), exemptions of $400 to $1,250 are available. Paraplegic veterans are fully exempt from property taxes if their disability is service-related.

Michigan

Michigan has property tax exemptions available for both disabled veterans and nonmilitary disabled persons. Veterans who are 100% disabled are fully exempt from property taxes while exemptions for nonmilitary disabled homeowners vary based on household income. Those exemptions max out at $1,500.

Minnesota

In Minnesota, blind and totally disabled homeowners are eligible up for an exemption of $50,000. Military veterans who have a 100% disability rating are exempt on all property taxes on homes up to $300,000. Veterans with a 70% disability rating are exempt on up to $150,000.

Mississippi

Mississippi offers a property tax exemption for 100% disabled veterans and nonmilitary homeowners. To be eligible, the homeowner must be 100% disabled as defined by the Federal Social Security Act. If qualified, the exemption excuses the homeowner from all property taxes in the state.

Missouri

Homeowners who are 100% disabled qualify for a property tax credit in Missouri, the sum of which is based on the taxes paid and the resident's household income. Disabled veterans also have a property tax credit they can leverage. Veterans must be 100% disabled and can receive up to $1,100. For both, the resident's household income must be under $30,000 (for single tax filers) and $34,000 (for married ones).

Montana

Montana has a property tax relief program for disabled veterans. The program offers a 50% to 100% reduction in property taxes for 100% disabled veterans earning $53,955 or less (if single) and $62,256 (if married).

There are currently no property tax exemption programs for nonmilitary, disabled homeowners in the state of Montana.

Nebraska

The state of Nebraska offers property tax exemptions for disabled veterans (both service-related and non-service-related) and nonmilitary, disabled homeowners, including those with developmental disabilities.

The total exemption in both categories depends on household income and ranges from 10% to 100% of the total assessed property value.

Nevada

Nevada offers disabled property tax exemptions for veterans and blind persons. Veterans with at least a 60% disability and an honorable discharge are exempt on up to $28,000 of assessed property value. Blind persons are exempt on $4,200 in assessed value. In both cases, the resident must have lived in Nevada for at least six months.

New Hampshire

In New Hampshire, there are property tax exemptions for disabled, blind, and deaf homeowners as well as for disabled veterans. Blind and deaf homeowners are eligible for a $15,000 exemption while exemptions for disabled residents vary by municipality and city.

Disabled veterans are exempt from all property taxes if they're honorably discharged and they're totally and permanently disabled due to service. Veterans who are double amputees or blind due to service are also eligible.

New Jersey

New Jersey offers a full property tax exemption for disabled veterans. The veteran must be honorably discharged, and their disability must have occurred as the result of service.

Though there is no exemption for nonmilitary disabled residents, there is a tax deduction. The disabled homeowner must have been a New Jersey resident for at least a year and fall under certain income requirements. The total deduction is worth $250.

New Mexico

New Mexico has a disabled veteran property tax exemption which qualifies 100% disabled vets for a full exemption from property tax liabilities.

There is no exemption for nonmilitary homeowners who are disabled.

New York

There are several property tax exemptions available for disabled homeowners in New York state. Nonmilitary disabled homeowners may be eligible for up to a 50% reduction in their property's assessed value, as long as they fall beneath the maximum income limit set by their municipality. Disabled veterans are also eligible for additional exemptions if they served in the Cold War or a combat zone or have a service-related disability.

North Carolina

Totally and permanently disabled homeowners in North Carolina can qualify for up to a 50% or $25,000 reduction in their property's appraised value, as long as their income is under $31,000. Disabled veterans can see a $45,000 reduction if they were honorably discharged and have a 100% service-related disability.

North Dakota

The state of North Dakota offers property tax credits, which are available to permanently disabled residents who make less than $42,000. The credit reduces the home's assessed value by anywhere from 10% to 100%, depending on the resident's income.

There is also a disabled veteran's credit available to veterans with a service-related disability of 50% or more. Eligible veterans will see their home's assessed value reduced by the disability rating (a 70% rating equals a 70% reduction in value, for example).

Ohio

Ohio's homestead exemption is available to permanently and totally disabled homeowners and offers an exemption of up to $25,000. Homeowners must have an income of $32,800 or less in the most recent tax year.

The state also offers an exemption for disabled veterans. A qualified veteran must be 100% disabled or receive 100% disability compensation from the Department of Veterans Affairs. The exemption reduces the assessed value of the home by $50,000.

Oklahoma

Oklahoma has a disabled veterans property tax exemption which exempts qualified vets and their surviving spouses from property tax liabilities entirely. To qualify, the qualifying veteran needs to be 100% permanently disabled due to military service.

Currently, there are no additional exemptions available to disabled homeowners in the state of Oklahoma.

Oregon

In Oregon, veterans who are 40% disabled or more qualify for a property tax exemption. The exact amount of the exemption varies based on the homeowner's income.

Though there is no exemption for nonmilitary homeowners, there is a deferral program. This allows homeowners to borrow from the state of Oregon to pay their property taxes. This does require repayment and comes with interest charges.

Pennsylvania

Disabled veterans in Pennsylvania can be exempt from all property taxes if they're 100% disabled due to military service, were discharged honorably, and have an annual income of $92,594 or less.

There is currently no exemption for nonmilitary disabled homeowners in the state of Pennsylvania.

Rhode Island

In Rhode Island, there are property tax exemptions for disabled veterans. The total exemption depends on the county, as well as the severity of the disability. Other exemptions exist for visually impaired and disabled homeowners, though these vary by municipality.

South Carolina

South Carolina offers a homestead exemption for homeowners who are totally and permanently disabled (as recognized by a state or federal agency). Legally blind homeowners are also eligible for the exemption. In both cases, these exempt the resident from property taxes on the first $50,000 in assessed home value.

Veterans who are 100% disabled due to service are fully exempt from property taxes on up to one acre of land.

South Dakota

The state of South Dakota offers a number of property tax relief programs for disabled veterans, paraplegic veterans, and nonmilitary homeowners. Fully disabled veterans can be exempt on all taxes on up to $150,000 in assessed value.

Nonmilitary disabled homeowners can see their taxes reduced between 16% and 55%, depending on their income.

Tennessee

Tennessee offers exemptions for both veteran and nonmilitary homeowners who are disabled. Nonmilitary disabled homeowners must have an income of $29,860 or less and be rated totally and permanently disabled by the Social Security Administration. The exemption goes up to $28,300.

Disabled veterans are eligible for exemptions up to $175,000. They must have been honorably discharged and rated totally and permanently disabled by Veterans Affairs.

Texas

In Texas, there are exemptions for both disabled veterans and nonmilitary homeowners. Disabled vets receive between $5,000 to $12,000 in exemptions, depending on their disability rating. They're also eligible for the general homestead exemption and the senior citizen exemption if 65 or older.

For nonmilitary disabled homeowners, the exemption is $10,000, with more available in certain cities and municipalities. The homeowner must be eligible to receive disability insurance benefits in order to qualify.

Utah

The state of Utah offers property tax relief for disabled veterans who are at least 10% disabled. Veterans are exempt based on their disability rating up to $271,736. There is also a property tax exemption for blind homeowners, which reduces the property's taxable value by up to $11,500.

Vermont

Vermont offers property tax exemptions for disabled veterans which range anywhere from $10,000 to $40,000, depending on the municipality. A qualifying disabled veteran must have at least a 50% disability, a non-service-related pension, or permanent medical military retirement pay to be eligible.

There are currently no property tax relief options for nonmilitary disabled homeowners in the state of Vermont.

Virginia

In Virginia, 100% disabled veterans are fully exempt from all property taxes if the disability is service-related.

There are currently no statewide property tax exemptions for nonmilitary, disabled homeowners in Virginia.

Washington

Washington state has property tax exemptions for both disabled residents and veterans who are 80% or more disabled. For both programs, the homeowner must have a household income worth $40,000 or less and be unable to work due to their condition. The exemption is available on up to one acre of land and depends on total household income.

Washington, D.C.

In the District of Columbia, there are property tax exemptions for disabled nonmilitary homeowners and veterans. Disabled residents living in co-ops may also be eligible, as long as they own 50% of the property. The exemption offers up to $75,700 in reduced assessed value. Once the disabled homeowner or veteran reaches age 65, the exemption can go up to 50% of the home's assessed value.

West Virginia

In West Virginia, totally disabled homeowners are eligible for a tax exemption that lowers the property's assessed value by $20,000. The homeowner must have been a resident of the state for at least three years to qualify.

Disabled veterans are eligible for a state homestead exemption, which also offers a $20,000 exemption. The veteran must be 100% disabled due to their military service.

Wisconsin

Wisconsin does not have any property tax exemptions for disabled homeowners, though it does offer a tax credit for disabled veterans. The veteran must be 100% disabled due to military service, and credits vary based on the homeowner's total property tax bill.

Wyoming

Wyoming has property tax exemptions for disabled veterans. The exemption lowers the home's assessed value by $3,000. To qualify, the veteran needs to be a resident of the state for at least three years.

Currently, there are no property tax exemptions for nonmilitary disabled homeowners in the state of Wyoming.

The bottom line

As you can see, property tax exemptions vary widely from state to state (and by municipality). Always check with your local appraisal district to see what specific exemptions you may be eligible for. Even a small exemption can save you significantly on your property taxes.

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