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.
- 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?
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|