Property tax exemptions for disabled veterans can significantly reduce the cost of owning a home. These exemptions vary by state and are generally based on the veteran’s disability rating, which is determined by the Department of Veterans Affairs (VA). Understanding how these exemptions work and what each state offers is essential for disabled veterans looking to maximize their homeownership benefits.
In this article, we’ll explain how property tax exemptions work, outline the qualifications, and provide a table showing the disability rating required and property tax exemption amounts for all 50 states.
Table of Contents
How Property Tax Exemptions Work
Property tax exemptions reduce the amount of property tax a veteran has to pay. The amount of the exemption can vary greatly depending on the state and the veteran’s disability rating. These exemptions are designed to provide financial relief to veterans who have been affected by service-connected disabilities.
Types of Property Tax Exemptions
There are generally two types of property tax exemptions for disabled veterans:
- Full Exemptions: Some states offer full property tax exemptions, meaning the veteran does not have to pay any property taxes on their primary residence.
- Partial Exemptions: Other states provide partial exemptions, which reduce the taxable value of the home, thereby lowering the amount of tax owed.
Eligibility Criteria
While eligibility requirements can vary slightly from state to state, the following general criteria apply:
- Disability Rating: Veterans must have a service-connected disability rating from the VA, typically ranging from 10% to 100%.
- Primary Residence: The property must be the veteran’s primary residence to qualify for the exemption.
- State Residency: In most cases, veterans must be residents of the state where they are applying for the exemption.
Some states offer additional benefits for specific groups of veterans, such as those who were prisoners of war (POWs) or Medal of Honor recipients.
How to Apply for a Property Tax Exemption
The application process for a property tax exemption varies by state, but it generally involves the following steps:
- Obtain Your Disability Rating Letter: Veterans should first obtain a letter from the VA stating their disability rating.
- Complete the State Application Form: Each state has its own application form, which can be obtained from the local tax assessor’s office or the state’s Department of Veterans Affairs.
- Submit Supporting Documentation: Veterans will typically need to provide proof of residency, proof of homeownership, and their VA disability rating.
- Submit the Application Before the Deadline: Most states have specific deadlines for applying, so it’s important to submit the application on time.
Property Tax Exemptions by State
The table below provides a comprehensive breakdown of the property tax exemptions available to disabled veterans in all 50 states. It includes the disability rating required and the amount of property tax exemption offered.
| State | Disability Rating Required | Property Tax Exemption Amount |
|---|---|---|
| Alabama | 100% | Full exemption on primary residence |
| Alaska | 50% or higher | Full exemption on first $150,000 of assessed value |
| Arizona | 10% or higher | Up to $3,000 of assessed value |
| Arkansas | 100% | Full exemption on primary residence |
| California | 100% | Full exemption on primary residence |
| Colorado | 100% | 50% exemption on first $200,000 of assessed value |
| Connecticut | 10% or higher | $1,500 to $3,000 depending on rating |
| Delaware | 100% | Full exemption on primary residence |
| Florida | 10% or higher | Up to full exemption depending on rating |
| Georgia | 100% | Up to $85,645 of home value |
| Hawaii | 100% | Full exemption on primary residence |
| Idaho | 10% or higher | $1,320 to $1,320 plus additional depending on rating |
| Illinois | 30% or higher | $2,500 to full exemption depending on rating |
| Indiana | 10% or higher | Up to $37,440 deduction from assessed value |
| Iowa | 100% | Full exemption on primary residence |
| Kansas | 50% or higher | Full exemption on primary residence |
| Kentucky | 100% | Full exemption on first $40,500 of assessed value |
| Louisiana | 100% | Full exemption on primary residence |
| Maine | 100% | Up to $6,000 of home value |
| Maryland | 100% | Full exemption on primary residence |
| Massachusetts | 10% or higher | Up to $1,000 depending on rating |
| Michigan | 100% | Full exemption on primary residence |
| Minnesota | 70% or higher | Full exemption for 100%, partial for 70% |
| Mississippi | 100% | Full exemption on primary residence |
| Missouri | 100% | Full exemption on primary residence |
| Montana | 100% | Up to $100,000 of home value |
| Nebraska | 10% or higher | $2,000 to $10,000 depending on rating |
| Nevada | 10% or higher | Up to $20,000 of assessed value |
| New Hampshire | 100% | Full exemption on primary residence |
| New Jersey | 100% | Full exemption on primary residence |
| New Mexico | 100% | Full exemption on primary residence |
| New York | Any service-connected | Varies by local government |
| North Carolina | 100% | First $45,000 of assessed value |
| North Dakota | 50% or higher | Up to $150,000 of assessed value |
| Ohio | 100% | Up to $50,000 of assessed value |
| Oklahoma | 100% | Full exemption on primary residence |
| Oregon | 40% or higher | Up to $22,000 of assessed value |
| Pennsylvania | 100% | Full exemption on primary residence |
| Rhode Island | 10% or higher | $7,000 to $15,000 depending on rating |
| South Carolina | 100% | Full exemption on primary residence |
| South Dakota | 100% | $150,000 of assessed value |
| Tennessee | 100% | First $175,000 of home value |
| Texas | 10% or higher | Full exemption for 100%, partial for 10% or higher |
| Utah | 10% or higher | $275,699 to $1,100,000 depending on rating |
| Vermont | 10% or higher | Up to $10,000 depending on rating |
| Virginia | 100% | Full exemption on primary residence |
| Washington | 100% | Full exemption on primary residence |
| West Virginia | 100% | Full exemption on primary residence |
| Wisconsin | 100% | Full exemption on primary residence |
| Wyoming | 10% or higher | Up to $3,000 of assessed value |
Conclusion
Property tax exemptions for disabled veterans offer a meaningful way to reduce the financial burden of homeownership. The amount of exemption varies widely by state, with many states offering full exemptions for veterans with a 100% disability rating. By understanding the eligibility requirements and applying for these exemptions, disabled veterans can save thousands of dollars annually, making homeownership more affordable and accessible.
To take full advantage of these benefits, veterans should contact their local tax assessor’s office or state Department of Veterans Affairs to learn more about the specific property tax exemptions available in their area.
