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What Is the Veterans Property Tax Exemption?


Jul 02, 2020 by Aly J. Yale

If you're a military veteran, a VA loan can help you save money on your home purchase. Once you're in the home? A veteran's property tax exemption can help you keep saving that cash.

Veterans property tax exemptions reduce your home's assessed value, essentially lowering your property tax bill in the process. In some states, these exemptions are only available to disabled veterans, while in others, all qualifying veterans can enjoy the incentive.

Are you a military veteran? Want to save money on those annual property taxes? Here's a state-by-state guide to veterans' property tax relief.

Alabama

Alabama doesn't have a veterans exemption per se, but if you're disabled due to your military service, you may qualify for either an H-2 or H-3 exemption. An H-2 offers an exemption on all state property taxes and a $5,000 property value reduction on county and school district taxes. This exemption requires you to be retired due to your disability or be 65 and older and make less than $12,000 annually. If you're totally disabled and retired, you can qualify at any age.

If you're a veteran who's permanently and totally disabled, you may also qualify for an H-3 exemption. This one exempts you from all property taxes.

Alaska

Alaska offers a disabled veteran exemption, which qualifies you for a full exemption of all property taxes on up to $150,000 in real estate. The home must be your primary residence. Surviving spouses of disabled veterans also qualify for this exemption if they're at least 60 years old.

Arizona

In Arizona, a disabled veterans' property tax exemption is available offering a $3,000 reduction of your home's assessed value. Widows and widowers of disabled veterans can also qualify for this exemption.

Arkansas

Arkansas has a disabled veterans exemption offering full recusal from all property taxes if you suffered one of the following disabilities due to your military service: the loss of one or more limbs, total blindness, or 100% permanent and total disability. A surviving spouse may also be eligible for these benefits.

California

California offers both a veterans and a disabled veterans property tax exemption. The veterans exemption offers a reduction of assessed value up to $4,000. You must have an honorable discharge to qualify.

The disabled veterans exemption is available to vets who are 100% disabled due to their military service. It offers full exemption of property taxes on anywhere from $134,706 to $202,060, depending on your income.

Colorado

In Colorado, there is a property tax exemption for veterans who are 100% disabled. Qualifying vets can receive a 50% exemption on up to $200,000 in property.

Connecticut

Connecticut offers a number of exemptions for veterans -- both disabled and non-disabled. For veterans without a disability, there is a basic $1,000 property tax exemption. Veterans who make under $21,000 may also qualify for additional exemptions of up to $2,000.

Disabled veterans can qualify for a second exemption based on their disability rating. These exemptions range from $1,500 to $3,000. Again, lower-income veterans can receive additional exemptions based on their take-home pay.

Finally, severely disabled veterans who suffered the loss of one or more limbs, permanent paralysis of one leg and one arm, total blindness, or amputations of both legs, arms, hands, or feet qualify for an extra $10,000 exemption. More is available for those making under $21,000.

Delaware

Delaware currently has no property tax exemptions available for veterans, disabled or otherwise.

Florida

In Florida, there are a number of property tax exemptions available to veterans. Vets who have at least a 10% disability rating are entitled to up to a $5,000 reduction in assessed property value. Totally and permanently disabled veterans are exempt from all property taxes. This includes those who are confined to wheelchairs.

Veterans who are 65 or older and at least partially disabled can also qualify for a reduction in their assessed value. This exemption varies based on your disability rating.

Georgia

Georgia veterans are eligible for a property tax exemption as long as they've been honorably discharged, are rated 100% disabled (or receive 100% disability pay), or receive a statutory award for the loss of one or both feet, hands, or eyes.

Those who qualify are exempt from property taxes on up to $60,000 of their home's assessed value. They're also exempt from all county, municipal, and school district taxes.

Hawaii

Veterans who are totally disabled due to their military service are eligible for a full property tax exemption in the state of Hawaii, as long as the home is used only as a principal residence. If any portion of the home is used for business purposes, that portion does not qualify for the exemption.

Idaho

In Idaho, 100%-disabled veterans can qualify for a property tax exemption of up to $1,320. There are no income limits, and surviving spouses of veterans may also be eligible to use it.

Illinois

Illinois has several property tax exemptions available for veterans. The first is a returning veterans exemption, which offers veterans returning home from activity duty a one-time $5,000 reduction in assessed property value.

There's also the disabled veterans exemption. This one comes with a $2,500 to $5,000 exemption for veterans with a 30% to 69% disability and a full exemption for those who are 70% disabled or more. Disabled vets may also qualify for additional exemptions if they've used a Specially Adapted Housing grant on their property.

Indiana

A qualifying disabled veteran can qualify for a property tax exemption worth up to $24,960, depending on the severity of their disability. The minimum disability rating required is 10%. Veterans also must have received an honorable discharge and served in the military during wartime.

Iowa

In Iowa, veterans can qualify for both a property tax exemption and a tax credit. The exemption offers a $1,852 reduction in assessed home value, as long as the vet served on active duty during wartime or a minimum of 18 months in peacetime. Disabled veterans can qualify for a tax credit, which offers a 100%, dollar-for-dollar tax credit for veterans with 100% service-related disabilities.

Kansas

In Kansas, there's no property tax exemption per se, but there is a refund -- at least for disabled veterans. Veterans with at least a 50% disability can apply for a partial refund of their property taxes, as long as they have a Disability Determination Letter from the Department of Veterans Affairs.

Kentucky

Kentucky has a homestead property tax exemption for disabled veterans. To qualify, the veteran must be totally and permanently disabled, and the disability must be related to their military service. The exemption currently clocks in at $39,300, though this number changes every two years.

Louisiana

In Louisiana, there are tax exemptions for 100% disabled veterans. Those who qualify receive an exemption of up to $7,500.

Maine

Maine veterans can qualify for a property tax exemption if they are 62 or older and served during wartime, if they were 100% disabled during military service, or if they're receiving 100% disability pay as a veteran. The exemption reduces the assessed property value by $6,000.

Paraplegic veterans who receive specially adapted housing grants can receive an additional $50,000.

Maryland

Permanently and totally disabled veterans are eligible for a full exemption from property taxes in the state of Maryland, as long as the disability is service-related. Some surviving spouses may also be eligible for this exemption.

Massachusetts

The state of Massachusetts offers property tax exemptions to both partially and totally disabled veterans. The exemption ranges from $300 to $1,500 and depends on the severity of the disability. Veterans must have at least a 10% disability to be eligible. Veterans rendered paraplegic due to their military service are fully exempt from property taxes in the state.

Michigan

Fully disabled veterans are completely exempt from property taxes in the state of Michigan, as long as they were honorably discharged and the disability is the result of their military service. Some surviving spouses may also be eligible.

Minnesota

Minnesota veterans qualify for a full property tax exemption on up to $300,000 in assessed value. They must have a 100% disability rating to be eligible. For veterans with lesser disabilities (70% or more), exemptions are available on up to $150,000 in value.

Mississippi

In Mississippi, veterans with 100% service-related disabilities are eligible for a full exemption for property taxes. Veterans must have been honorably discharged to qualify.

Missouri

Missouri offers property tax credits to veterans who are 100% disabled due to their military service. Veterans must have a total household income of $30,000 (single) to $34,000 (married) or less to qualify. The tax credit ranges from $750 to $1,100 and is based on income.

Montana

In Montana, disabled veterans can qualify for an exemption on their property taxes. The exact exemption total varies from 50% to 100% and depends on the veteran's income. To be eligible, you must make under $53,955 if filing single or $62,256 if filing as a married couple.

Nebraska

In Nebraska, there's a disabled veteran's exemption for vets who are 100% disabled due to their military service. They must have been honorably discharged and make less than $46,900.99 if filing single and $54,700.99 if filing as a married couple. The total exemption ranges from 10% to 100%, depending on household income.

Other veterans may be eligible for an exemption as long as their home has seen significant contributions from the Department of Veterans Affairs.

Nevada

In Nevada, both disabled and nondisabled veterans may qualify for property tax exemptions. A qualifying veteran can get anywhere from a $14,000 to $28,000 exemption depending on the severity of their disability, while nondisabled vets may be eligible for a $2,800 exemption. Disabled veterans must have at least a 60% disability.

New Hampshire

New Hampshire offers a $51 tax credit for wartime veterans, and municipalities can offer up to $750 on top of that. Totally and permanently disabled veterans may qualify for a tax credit of $701, with an additional $4,000 possible from the city or municipality.

Permanently, totally disabled veterans who paid for their homes with a Specially Adapted Housing grant may be eligible for a full exemption from property taxes.

New Jersey

In New Jersey, there's a $250 property tax reduction for all wartime veterans who were honorably discharged. Veterans with 100% disability can qualify for a full property tax exemption. In some cases, surviving spouses may qualify for both of these incentives.

New Mexico

In New Mexico, 100% disabled veterans can qualify for a full exemption on their property taxes.

New York

New York veterans have several property tax exemption options at their disposal. The first is for veterans who served during wartime or received a medal of honor. This one offers a 15% reduction in the property's assessed value and additional 10% if the veteran served in a combat zone.

There's also the Cold War Veteran's Exemption for veterans who served during the Cold War. Again, this one offers up to a 15% reduction in taxable value. Disabled veterans can receive additional funds on both this exemption and the exemption above.

Finally, there's the Eligible Funds Exemption, which offers up to a $7,500 reduction if the veteran used their pension, bonus, or military pay to cover the cost of the property in question.

North Carolina

North Carolina offers an up to $45,000 property tax exemption for disabled veterans who were honorably discharged. An eligible veteran must have a 100% disability or receive specially adapted housing benefits.

North Dakota

In North Dakota, veterans with a disability of at least 50% may qualify for an exemption from property taxes. The total exemption is equal to the veteran's disability rating (i.e., 50% in reduced value for a 50% disability).

Ohio

Ohio offers a $50,000 property tax exemption for disabled veterans. Veterans must be 100% disabled due to military service in order to qualify.

Oklahoma

In Oklahoma, veterans with a 100%-service-related disability can receive a full exemption from all property taxes. They must be honorably discharged to qualify. In some cases, surviving spouses may also be eligible.

Oregon

In Oregon, veterans qualify for a property tax exemption if they have at least a 40% service-connected disability. The total exemption goes up to $27,228, though it increases by 3% every year.

Pennsylvania

Pennsylvania offers a real estate tax exemption for veterans who are 100% permanently disabled due to their military service. To be eligible, they must have been discharged honorably and make less than $92,594. Blind or paraplegic veterans also may qualify.

Rhode Island

Rhode Island offers several tax exemptions for disabled and nondisabled veterans. These range anywhere from $300 to $10,000 and vary by county.

South Carolina

In South Carolina, fully disabled veterans may be eligible for a complete exemption from all property taxes. A qualified veteran needs to be declared 100% permanently and totally disabled by the Social Security Administration or the Department of Veteran Affairs (or another state/federal agency).

South Dakota

In South Dakota, there are exemptions available for both fully disabled and paraplegic veterans. Paraplegic veterans can qualify for an up to 100% exemption as long as they make $18,730 or less per year. Fully disabled veterans are exempt on up to $150,000 in assessed property value.

Tennessee

In Tennessee, disabled veterans are eligible for an exemption up to $175,000 in assessed value. The veteran must be totally and permanently disabled and honorably discharged to qualify. Widows and widowers of disabled veterans can also qualify for the exemption.

Texas

Disabled veterans may be eligible for a full or partial property tax exemption in Tennessee. Veterans who are 100% disabled are fully exempt from property taxes. For partially disabled veterans, the total exemption correlates to the severity of the veteran's disability.

Utah

In Utah, veterans with a disability can be exempt on up to $271,736 in total assessed property value. The exact exemption depends on the severity of the veteran's disability, but veterans must be at least 10% disabled in order to qualify.

Vermont

Vermont offers property tax exemptions for veterans with a disability rating of 50% or higher, those who are receiving non-service-connected pensions, and those collecting permanent military retirement pay for medical retirement. The exemption amount varies by city, ranging from $10,000 to $40,000. Some surviving spouses may be eligible.

Virginia

Fully disabled veterans are exempt from all real estate taxes in the state of Virginia. The veteran must have a 100% permanent and total service-connected disability to be eligible. In some cases surviving spouses might qualify.

Washington

In Washington, veterans qualify for a tax exemption if they're getting 100% VA disability compensation. To qualify, veterans need to have a total household income of $40,000 or less.

Washington, D.C.

The District of Columbia has no specific property tax exemptions for veterans, though it does have exemptions for senior citizens, offering veterans over the age of 65 a reduction in property tax value.

West Virginia

In West Virginia, veterans can qualify for a property tax exemption if they're 100% permanently and totally disabled due to their military service.

Wisconsin

Wisconsin offers a 100% disabled veterans property tax credit, which qualifies them for a full exemption from the taxes on their principal residence.

Wyoming

The state of Wyoming offers veterans a $3,000 reduction in property tax value as long as they were honorably discharged, served in combat, or, in some cases, are disabled. Veterans must have lived in Wyoming for at least three years to qualify.

The bottom line

Most states offer a property tax break of some sort for veterans. Additionally, many cities and municipalities also do. Be sure to check with your local appraisal district to see what benefits you may be eligible for as a property owner.

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