Property Tax Exemptions for Veterans

A soldier and his wife review financial documents in a kitchen
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Property taxes are assessed based on the value of real estate you own, including the land and any buildings. They’re due each year, and you may pay them via an escrow account held by your mortgage lender or directly to your local tax office. 

Fortunately, if you’ve served in the U.S. military, you may qualify for a property tax exemption. Requirements vary by state, and you may be eligible for a larger exemption if you have disabilities. Let’s take a look at property tax exemptions in general, how they work for veterans, and what exemptions are available in each state. 

Key Takeaways

  • Property taxes are assessed based on the value of your home and the land it sits on.
  • Some states exempt portions of the property value from taxation.
  • Other states reduce assessed taxes by a specified amount.
  • Some states tie exemptions to disability ratings, while others impose income limits.

What Is a Property Tax Exemption?

Property tax is an annual tax on real property based on the assessed market value of your land and buildings. Each state—and sometimes, county—handles property assessments and taxes differently. 

A property tax exemption is the elimination of some or all of the property taxes you owe. A property may be eligible for exemption in a few different ways, including based on the existence of a homestead, whether it’s used as a place of worship, and whether it’s owned by a veteran. 

Property Tax Exemptions for Veterans

States have different levels of exemptions for veterans depending on their status. Some states provide exemptions simply for having served in the military, while others require that veterans have a certain amount of disability.

Some states may only give exemptions to veterans who are 100% permanently disabled or who receive Total Disability Individual Unemployability (TDIU). Check the rules for your state to be sure. In most cases, your disability must be service-connected, although there are a few exceptions.

Most states require you to have been honorably discharged from service. Finally, many states include spouses of veterans in their exemptions, though you’ll want to check to see if this applies to you. Keep in mind that most veteran property tax exemptions require that you use the property as your primary residence, so investment properties or vacation homes won’t qualify. 

Veterans Property Tax Exemptions by State

States have the ability to create their own requirements for veteran property tax exemptions. This can be confusing, especially if you’re not sure whether you meet the criteria. To help you out, we’ve put together a table outlining the requirements for each state. For more details, contact your local tax assessment office.

Some states exempt part of the property’s assessed value from taxation, while others tax the full value and then reduce the taxes by a specified amount. 

State Veteran Requirements Property Tax Exemption
Alabama Not specific to veterans; must be 100% permanently disabled or over age 65 with less than $12,000 in annual income Single-family residence and up to 160 acres of land completely exempt from taxes
Alaska Must be rated at least 50% disabled First $150,000 in valuation is exempt
Arizona Not specific to veterans. People with disabilities with less than $20,000 in annual income qualify (or up to $25,000 if they have children under 18 who do not live at home, or $30,000 if they have children under 18 who live at home or are permanently disabled) $3,000 exempt from taxation
Arkansas 100% permanently disabled, loss of one or more limbs, or total blindness in one or both eyes Primary residence completely exempted from taxes
California Veterans who own less than $5,000 worth of property (or $10,000 worth for a married couple or surviving spouse) $4,000 exemption for real or personal property
100% disability rating, blind in both eyes, or has lost the use of two or more limbs $100,000 exemption ($150,000 exemption if the veteran earns less than $52,470 per year)
Colorado 100% disabled 50% of the first $200,000 in property value is exempted
Connecticut At least 90 days of wartime service. Disabled veterans or those below a certain income threshold may qualify for additional exemptions $1,500 reduction in assessed property value
Delaware 100% disability rating, full-time legal resident of the state 100% exempt from property taxes
District of Columbia 100% permanently disabled  Up to $500,000 in property value is exempted 
Florida 10% or higher disability rating $5,000 exemption
100% permanently disabled Fully exempt from property tax
65 and older with a disability rating Discount on property taxes based on disability percentage
Georgia 100% permanently disabled or entitled to receive certain statutory awards from the VA Up to $50,000 plus an amount that changes annually; in 2020, it was $98,492 for a total exemption of $148,492 in property value
Hawaii 100% disabled Varies by county; either complete exemption for all but the minimum tax or 50% of the minimum tax
Idaho 100% disabled Reduces taxes on a home and up to one acre of land by $1,500
At least 10% disabled and earned less than $31,900 in 2020 Reduces taxes on a home and up to one acre of land by up to $1,320
Illinois All veterans returning from active duty One-time exemption of $5,000 in assessed property value
30%-49% disabled $2,500 exemption
50%-69% disabled $5,000 exemption
70%-100% disabled Complete exemption
Indiana Served in a war and at least 10% disabled Up to $24,960 of assessed value exempted
Served for at least 90 days and either 100% disabled or at least 62 years old and at least 10% disabled Up to $14,000 of assessed value exempted (property value must not exceed $200,000)
Iowa 100% disabled 100% exemption
Served on active duty during a war or at least 18 months in peacetime Up to $1,852 in property value exempted
Kansas At least 50% disabled with less than $36,300 in annual household income Up to $700 refund on property taxes for homes worth up to $350,000
Kentucky At least 65 years old or 100% disabled Up to $40,500 of assessed value exempted in 2021 and 2022
Louisiana 100% disabled Up to $15,000 of property value exempt from taxation
Maine 100% disabled or at least 62 years old and served during a war period $6,000 exemption
Paraplegic and received a federal grant to adapt a housing unit $50,000 exemption
Maryland 100% permanently disabled Complete exemption 
Massachusetts 10% or higher disability rating or Purple Heart recipient; Gold Star parent $400 tax exemption
Loss or loss of use of one hand, one foot, or one eye; or recipient of Congressional Medal of Honor, Distinguished Service Cross, Navy Cross, or Air Force Cross $750 tax exemption
Loss or loss of use of both hands, both feet, one hand, and one foot, or both eyes $1,250 tax exemption
100% permanent disability rating $1,000 tax exemption ($1,500 tax exemption if housing is specially adapted)
Surviving spouse of a veteran who died as a result of combat 100% tax exemption
Michigan 100% permanently disabled Complete exemption
Minnesota 70% to 99% disability rating Up to $150,000 in property value
100% permanent disability rating Up to $300,000 in property value
Mississippi 100% disabled (not limited to veterans) Complete exemption 
Missouri Former prisoner of war who is also 100% disabled Complete exemption
Montana 100% disability rating Reduces property taxes by 50%, 70%, 80% or 100% based on household income and marital status
Nebraska 100% service-connected disabled Complete exemption
100% non-service-connected disabled Partial exemption based on income
Nevada Wartime veteran with at least 90 continuous days of active service Annual exemption for 2020–2021 is $2,880
60%-100% disabled Between $14,000 and $28,000 in property value based on degree of disability
New Hampshire Veterans who served at least 90 days during an armed conflict or suffered a service-connected disability $50 to $750 reduction on property tax bill, depending on county of residence
100% permanently disabled, paraplegic, or double amputee due to service $700 to $4,000 reduction on property tax bill, depending on county of residence
100% permanently disabled and unemployable; or blind, paraplegic, or double amputee due to service Complete exemption
New Jersey Veterans who served on active duty $250 property tax deduction
100% permanently disabled after active-duty service Complete exemption
New Mexico All veterans Up to $4,000 in property value exempt from taxation
100% permanently disabled Complete exemption
New York Veterans who served during a designated time of war Up to 25% reduction in assessed value, plus more for service-connected disabilities 
Veterans who served during the Cold War 10% or 15% reduction in assessed value, plus more for service-connected disabilities
Veterans who used specific eligible funds to purchase their homes Up to $7,500 in property value 
North Carolina 100% permanently disabled Up to $45,000 in property value 
North Dakota 50% to 100% disabled $4,050 to $8,100 in property value, based on disability rating
Ohio 100% disabled Up to $50,000 in property value
Oklahoma 100% permanently disabled Complete exemption 
Oregon 40% or more disabled Up to $23,370 in property value; amount increases by 3% each year
40% or more service-connected disabled Up to $28,045 in property value; amount increases by 3% each year
Pennsylvania 100% permanently disabled wartime veteran, or blind, paraplegic, or lost at least two limbs; income limits apply Complete exemption 
Rhode Island Varies by municipality Varies by municipality
South Carolina 100% permanently disabled Complete exemption on one home and five acres of land
Former prisoners of war and Medal of Honor recipients  Complete exemption on one home and one acre of land
South Dakota Veterans with loss or loss of use of both legs and a home designed for wheelchair use Complete exemption
100% permanently disabled Up to $150,000 in property value
Tennessee Parapalegic, blind, or loss of use of two or more limbs; 100% service-connected permanent disability; or 100% disability from being a prisoner of war Tax relief varies by municipality and is calculated on a maximum market value of $175,000
Texas 100% disabled Complete exemption
10% to 99% disabled  $5,000 to $12,000 of property value based on disability percentage
Over age 65 and at least 10% disability rating, blind in one or both eyes, or has lost the use of at least one limb Up to an additional $12,000 in property value
Utah At least a 10% disability rating Up to $275,699 in property valuation based on disability percentage
Vermont 50% or higher disability rating, non-service-connected pension, or medical military retirement pay $10,000 to $40,000 of property value, depending on town
Virginia 100% permanently disabled Complete exemption 
Washington 80% or higher disability rating; based on income limits that vary by county Varies by county
West Virginia 100% permanently disabled  Up to $20,000 of assessed value
Wisconsin 100% disabled  Refundable property tax credit in the amount of property taxes paid
Wyoming Veterans of a foreign war, or who have received a U.S. Armed Forces Expeditionary Medal, or who have a certified service-connected disability Up to $3,000 in property value