Disabled Veteran Homestead Exemption
Mississippi Disabled Veteran Property Tax Exemptions in 2026
MS Code §27-33-67
Mississippi Veterans Affairs — State Benefits
VA Disability Compensation
Mississippi exempts 100% service-connected totally disabled Veterans from all property tax on the assessed value of their homestead. At Mississippi’s average effective rate of 0.65%, a Veteran with a $225,000 home near Keesler AFB saves roughly $1,463 per year — $122 per month off the VA loan payment. Combined with Mississippi’s affordable housing market and the VA funding fee waiver, the total cost of homeownership for a 100% P&T Veteran here is among the lowest in the country.
Next step:
Check Your VA Loan Eligibility
100% Disabled Veteran Exemption
- Full exemption from all property taxes on the homestead assessed value
- Must have service-connected total disability rating from the VA
- Honorable discharge required
- File with your county tax collector with your VA disability letter
Standard Homestead Exemption
- All homeowners get the first $7,500 of assessed value exempt (first $75K market value)
- Veterans under 100% qualify for this standard benefit
- Over-65 homeowners get additional exemption on the first $7,500 assessed
- If rated below 100%, apply for the standard homestead exemption
Filing And Documentation
- Apply with your county tax collector — not the state or VA
- Bring VA letter stating 100% disability and effective date
- Must be honorably discharged with service-connected total disability
- File as soon as you own and occupy the property
VA Loan Impact
- $0 tax escrow = lower monthly PITI = better DTI ratio
- $122/month savings on a $225K home adds ~$15K in buying power
- Affordable market + tax exemption = very low total housing cost
- Notify your lender about the exemption during preapproval
Frequently Asked Questions
How much does a 100% disabled Veteran save on property tax in Mississippi?
A 100% service-connected totally disabled Veteran is exempt from all property tax on their homestead. On a $225,000 home at Mississippi’s average 0.65% effective rate, that saves approximately $1,463 per year — $122 per month.
Do partially disabled Veterans get a property tax break in Mississippi?
Not under the Veteran-specific exemption. However, all Mississippi homeowners qualify for the standard homestead exemption on the first $7,500 of assessed value (approximately the first $75,000 of market value).
Where do I apply for the Mississippi disabled Veteran property tax exemption?
File with your county tax collector. Bring your VA letter showing 100% service-connected total disability, your DD-214, and proof of homestead occupancy.
The Bottom Line Up Front
Mississippi exempts 100% service-connected totally disabled Veterans from all property tax on their homestead assessed value. At the state’s average effective rate of 0.65%, a Veteran with a $225,000 home near Keesler AFB saves $1,463 per year — $122 per month. This is an all-or-nothing benefit: partial disability ratings do not qualify for the Veteran-specific exemption, though all homeowners receive the standard homestead exemption on the first $75,000 of market value.
Mississippi’s low home prices and low tax rates mean the dollar savings are modest compared to high-tax states like Iowa or Texas. But the combination of affordable housing, the tax exemption, and the VA funding fee waiver makes Mississippi one of the cheapest places in the country for a 100% P&T Veteran to own a home. If you are buying with a VA loan, the exemption still meaningfully improves your qualification math.
What To Do Based On Your Situation
- Buying a home in Mississippi soon: Apply for the exemption immediately after closing. Notify your lender of your disability status during preapproval so escrow reflects the reduced tax liability.
- Already own a home in Mississippi: If you have not applied, file with your county tax collector now. Bring your VA disability letter with the effective date and your DD-214.
- Surviving spouse of a Mississippi Veteran: Mississippi extends the exemption to the surviving spouse of a qualifying Veteran. File with the county tax collector with the Veteran’s documentation and your marriage certificate.
What Does Mississippi Offer Disabled Veterans?
Mississippi provides two property tax benefits. The disabled Veteran exemption under MS Code §27-33-67 eliminates all property tax on the homestead for 100% service-connected totally disabled Veterans. The standard homestead exemption — available to all homeowners — covers the first $7,500 of assessed value (approximately the first $75,000 in market value).
The Veteran exemption is the more valuable benefit by far. It removes the entire tax bill, while the standard homestead exemption only covers a portion. Veterans rated below 100% default to the standard homestead exemption, which provides limited relief.
| Qualification | Exemption amount | Annual savings on $225K home at 0.65% | Monthly PITI reduction |
|---|---|---|---|
| 100% service-connected total disability | Full exemption — $0 tax on assessed value | $1,463 | $122 |
| Surviving spouse of qualifying Veteran | Full exemption — $0 tax on assessed value | $1,463 | $122 |
| Standard homestead (all homeowners) | First $7,500 assessed value exempt ($75K market) | ~$488 | ~$41 |
| Over-65 standard homestead | Additional first $7,500 assessed value exempt | ~$488 | ~$41 |
| Partial disability (10–99%) | Standard homestead only | ~$488 | ~$41 |
Deal Math: A 100% P&T Veteran buying a $250,000 home in Harrison County (near Keesler AFB) at a 0.70% effective rate saves $1,750 per year — $146 per month. Combined with the VA funding fee exemption (saving $5,375 upfront on a $250,000 loan), the total first-year benefit is $7,125. Over a 30-year mortgage, the property tax savings alone total $52,500.
What Is The Exemption Worth In Real Dollars?
Mississippi has the lowest median home prices in the country, which keeps dollar savings moderate. But because the tax rate is also low, the effective cost of homeownership for exempt Veterans is minimal. The combination of low prices and zero taxes creates a total housing cost that is hard to beat.
| Home value | Effective tax rate | Annual tax without exemption | Annual tax with 100% exemption | Monthly savings |
|---|---|---|---|---|
| $150,000 | 0.60% | $900 | $0 | $75 |
| $225,000 | 0.65% | $1,463 | $0 | $122 |
| $300,000 | 0.70% | $2,100 | $0 | $175 |
| $400,000 | 0.72% | $2,880 | $0 | $240 |
Home Search Impact: A Veteran with the 100% exemption shopping near Keesler AFB (Harrison County, effective rate ~0.70%) gains approximately $75 to $150 per month in payment capacity compared to a non-exempt buyer at the same income level. At current VA rates, that translates to roughly $9,000 to $18,000 more in purchasing power. In Mississippi’s affordable market, that extra capacity can move you from a standard home to a waterfront property near the Gulf Coast.
Who Is Eligible For The Mississippi Exemption?
Eligibility requires three things: honorable discharge, service-connected total disability as determined by the VA, and homestead occupancy. Mississippi does not offer tiered exemptions for partial disability ratings.
- Service-connected total disability: Must have a VA-determined 100% service-connected total disability rating. The VA letter must show the effective date.
- Honorable discharge: Required for all applicants. Other-than-honorable or dishonorable discharges do not qualify.
- Homestead requirement: Property must be your primary residence that you own and occupy.
- No partial exemption: Mississippi does not provide a tiered or proportional exemption for ratings below 100%. Veterans with partial ratings receive the standard homestead exemption only.
How Do You Apply In Mississippi?
File with your county tax collector. Mississippi uses county-level administration for property tax exemptions. You will need your VA documentation and proof of homestead occupancy.
- Gather your documents: VA letter stating 100% service-connected total disability with effective date, DD-214 (honorable discharge), and proof of homestead occupancy.
- Find your county tax collector: Key counties near Military bases: Harrison County (Keesler AFB), Forrest County (Camp Shelby), Lowndes County (Columbus AFB), Lauderdale County (NAS Meridian), Hancock County (Stennis Space Center).
- File the application: Submit in person to your county tax collector with all required documentation.
- Notify your mortgage company: After approval, contact your loan servicer to request an escrow re-analysis so your monthly payment reflects the $0 tax bill.
Process Watchpoint: Mississippi assesses property at 10% of true value for tax purposes. When you see “$7,500 assessed value exempt” for the standard homestead, that actually means the first $75,000 in market value is exempt. For the disabled Veteran exemption, the full assessed value is exempt regardless of market value. Do not confuse assessed value with market value when calculating your benefit.
Where Do Veterans File Near Mississippi Military Bases?
Mississippi has five major Military installations spread across the state. Home prices are affordable at every location, making the state an attractive option for Veteran homebuyers.
| Military base | County | Approx. effective rate | Annual savings on $225K home (100% P&T) | Median home price (2026 est.) |
|---|---|---|---|---|
| Keesler AFB | Harrison | 0.70% | $1,575 | $230,000 |
| Columbus AFB | Lowndes | 0.65% | $1,463 | $195,000 |
| Camp Shelby | Forrest | 0.62% | $1,395 | $210,000 |
| NAS Meridian | Lauderdale | 0.63% | $1,418 | $175,000 |
| Stennis Space Center | Hancock | 0.68% | $1,530 | $220,000 |
How Does This Change Your VA Loan Math?
Mississippi’s low tax rates mean the exemption has a more moderate impact on VA loan qualification compared to high-tax states. But every dollar still counts, and the savings improve your debt-to-income ratio at every price point.
- PITI impact: On a $225,000 home at 6.5% with $0 down, removing $122/month in tax escrow drops your total PITI from approximately $1,544 to $1,422. That is a 7.9% reduction in your housing payment.
- DTI improvement: At $5,000/month gross income, that $122 reduction drops your housing DTI from 31% to 28% — providing useful headroom under the 41% VA benchmark.
- Buying power shift: The $122 monthly savings supports an additional $15,000 to $18,000 in purchase price at 6.5%. In Mississippi’s affordable market, that can be the difference between a 3-bedroom and a 4-bedroom.
- Escrow adjustment: If you close before the exemption is approved, request an escrow re-analysis once the county processes your application. Your monthly payment will decrease and the lender will refund any overage.
Do Surviving Spouses Keep The Exemption In Mississippi?
Yes. Mississippi extends the property tax exemption to the surviving spouse of a qualifying Veteran. The surviving spouse must continue to own and occupy the homestead. Contact your county tax collector for documentation requirements, which typically include the Veteran’s death certificate, VA disability documentation, and marriage certificate.
Remarriage rules vary — check with your county tax collector on whether remarriage terminates the benefit. Some states allow continuation while others revoke upon remarriage. Mississippi’s statute does not explicitly address this, so county-level guidance applies.
The Bottom Line
Mississippi provides a full property tax exemption for 100% service-connected totally disabled Veterans on their homestead. On a typical $225,000 home near Keesler AFB, that saves $1,463 per year — $122 per month off your VA loan payment. File with your county tax collector, bring your VA disability letter showing 100% total disability, and you pay $0 in property tax. Combined with Mississippi’s already-affordable housing, the total cost of homeownership for an exempt Veteran here is among the lowest in the nation.
Frequently Asked Questions
Should I apply for the exemption before or after closing?
After closing — you must own and occupy the home as your homestead. Apply immediately after closing to minimize time paying full taxes.
Will my lender adjust my escrow after the exemption is approved?
Not automatically. Contact your loan servicer and request an escrow re-analysis once the county confirms the exemption. Your monthly payment will decrease.
Can I combine the property tax exemption with the VA funding fee waiver?
Yes. These are separate benefits from different agencies. A 100% disabled Veteran is exempt from both the VA funding fee and Mississippi property tax.
Does IU (Individual Unemployability) qualify?
IU may qualify if the VA designates you as totally and permanently disabled. Bring your VA Summary of Benefits letter showing total disability status to the county tax collector.
What is the difference between assessed value and market value in Mississippi?
Mississippi assesses property at 10% of true market value. A $225,000 home has an assessed value of $22,500. The Veteran exemption covers the full assessed value.
Does the standard homestead exemption stack with the Veteran exemption?
The Veteran exemption covers your entire assessed value, which already includes the portion covered by the standard homestead. There is no need to stack them separately.
What if my disability rating changes?
If your rating drops below total disability, you lose the Veteran-specific exemption and revert to the standard homestead exemption. Contact your county tax collector to update your status.
Can I get the exemption on a second home or rental property?
No. The exemption applies only to your primary residence homestead. Investment properties and second homes do not qualify.
Do I need to reapply every year?
Check with your county tax collector. Some counties require annual renewal while others maintain the exemption until circumstances change.
Does the exemption cover all taxing jurisdictions?
Yes. The exemption covers all ad valorem taxes on the homestead assessed value, including county, city, school district, and special district levies.
How long does it take to get the exemption approved?
Most counties process applications within 2 to 4 weeks. Contact your county tax collector for specific processing timelines.
Can a surviving spouse transfer the exemption to a new home?
The surviving spouse should reapply at the new property with the county tax collector. Bring all original documentation plus proof of occupancy at the new address.
