Property Tax Exemptions By Disability Rating
Missouri Disabled Veteran Property Tax Exemptions in 2026
Missouri DOR Property Tax Credit
MyArmyBenefits — Missouri
HB 921 — Disabled Veteran Property Tax Relief Act
Missouri significantly expanded its disabled veteran property tax benefits effective January 1, 2026. Under the new law, veterans rated 70% or higher receive a full property tax exemption on their primary residence. Veterans rated 30% to 69% receive tiered dollar exemptions. This is a dramatic improvement from the prior system, which offered only a modest property tax credit with strict income limits. On a $280,000 home near Fort Leonard Wood at Missouri’s 0.88% average effective rate, a 100% P&T veteran now pays $0 in property taxes — saving approximately $2,464 per year.
Next step:
Check Your VA Loan Eligibility
New 2026 Full Exemption (70%+)
- Veterans rated 70% or higher receive a 100% property tax exemption on their primary residence
- Effective January 1, 2026 — this is new legislation, not the old credit system
- Assessed value must be under $250,000 (market value limit varies by assessment ratio)
- File with your local assessor or collector before April 1
Tiered Exemptions (30-69%)
- 30% to 49% disability: $2,500 annual property tax exemption
- 50% to 69% disability: $5,000 annual property tax exemption
- Must have honorable discharge and be a Missouri resident
- Submit your VA rating letter and application to your county assessor
Filing And Deadlines
- Apply with your local assessor or collector — not the state revenue department
- Application deadline is April 1 for the current tax year
- Veterans rated below 100% P&T must reapply annually
- File your application and set a calendar reminder for annual renewal
VA Loan Impact
- $0 tax escrow for 70%+ rated veterans = lower monthly PITI = better DTI ratio
- On a $280K home, the full exemption saves ~$205/month in escrow
- Combined with the VA funding fee exemption, the total first-year benefit exceeds $8,400
- Tell your lender about the new 2026 exemption so escrow reflects the correct amount
Frequently Asked Questions
How much does a 100% disabled veteran save on property tax in Missouri under the new 2026 law?
A veteran rated 70% or higher pays zero property tax on their primary residence (if assessed value is under $250,000). On a $280,000 home at Missouri’s 0.88% average effective rate, that saves approximately $2,464 per year — about $205 per month.
Is the new Missouri property tax exemption different from the old property tax credit?
Yes, dramatically. The old system was a property tax credit of up to $1,100 with strict income limits ($30,000 single / $34,000 married). The new 2026 law provides tiered exemptions based on disability rating — with a full exemption for veterans rated 70% or higher.
Where do I apply for the Missouri disabled veteran property tax exemption?
File with your local assessor or collector before April 1. You need your VA rating documentation showing your service-connected disability percentage, proof of honorable discharge, and proof of Missouri residency.
The Bottom Line Up Front
Missouri overhauled its disabled veteran property tax benefits effective January 1, 2026. Under the new Disabled Veteran Property Tax Relief Act, veterans rated 70% or higher receive a full property tax exemption on their primary residence (assessed value under $250,000). Veterans rated 50% to 69% receive a $5,000 annual exemption, and those rated 30% to 49% receive a $2,500 annual exemption. This replaces the old property tax credit system that capped at $1,100 and had strict income limits. On a $280,000 home at Missouri’s 0.88% effective rate, a 70%+ rated veteran now saves $2,464 per year instead of a maximum $1,100 credit. This is a significant improvement.
The new law applies to the primary residence of honorably-discharged veterans who are Missouri residents. The property must have an assessed value under $250,000 — which in Missouri’s assessment system translates to a market value of approximately $1.3 million for residential property (assessed at 19% of market value). This cap is generous enough that it will not affect the vast majority of veteran homebuyers. Veterans with a disability rating below 100% P&T must reapply annually, while those with a 100% permanent and total rating may be exempt from annual re-filing.
What To Do Based On Your Situation
- Buying a home in Missouri in 2026: Apply for the new exemption as soon as you close. File with your local assessor or collector before April 1. Tell your lender about the 2026 exemption during preapproval so escrow reflects the correct tax amount.
- Already own a home in Missouri with a disability rating: The new law is effective January 1, 2026. File your application now to get the exemption for the 2026 tax year. This replaces the old property tax credit — you will receive significantly more relief under the new system if your rating is 30% or higher.
- Previously denied or ineligible under the old system: The old property tax credit had income limits ($30,000 single / $34,000 married). The new exemption has no income limit — only the assessed value cap and disability rating requirements. If you were ineligible before due to income, you likely qualify now.
What Are The New 2026 Missouri Exemption Tiers?
Missouri’s new law creates a tiered system based on VA disability rating. This is a substantial change from the prior system, which offered only a modest property tax credit. The new tiers are structured to provide progressively more relief as the disability rating increases.
| VA disability rating | Exemption amount | Annual savings on $280K home at 0.88% | Monthly PITI reduction |
|---|---|---|---|
| Below 30% | No exemption (old credit may still apply) | $0 | $0 |
| 30% to 49% | $2,500 off annual tax bill | $2,464 (capped at $2,500) | $205 |
| 50% to 69% | $5,000 off annual tax bill | $2,464 (full tax eliminated) | $205 |
| 70% to 99% | 100% exemption | $2,464 | $205 |
| 100% P&T | 100% exemption (no annual re-filing) | $2,464 | $205 |
| Former POW (100% disabled) | 100% exemption (existing law) | $2,464 | $205 |
Deal Saver: The $2,500 exemption for 30% to 49% rated veterans is worth more than most people realize. Under the old Missouri property tax credit, the maximum benefit was $1,100 — and only if your income was under $30,000. The new $2,500 exemption has no income limit. A veteran earning $80,000 per year with a 40% rating who previously got nothing now saves $2,500 per year. If you have any service-connected rating of 30% or higher, file the application — this is new money available starting in 2026.
How Did Missouri’s Property Tax Benefits Change?
Understanding the change from the old system to the new system matters because many veterans in Missouri may still be operating under the assumption that the state offers only limited property tax relief. Here is a direct comparison.
| Feature | Old system (pre-2026) | New system (2026+) |
|---|---|---|
| Benefit type | Property tax credit (up to $1,100) | Property tax exemption (tiered by rating) |
| Income limit | $30,000 single / $34,000 married | None |
| 100% P&T benefit | Credit up to $1,100 (with income limit) | Full exemption — $0 property tax |
| 70-99% benefit | Credit up to $1,100 (with income limit) | Full exemption — $0 property tax |
| 50-69% benefit | Credit up to $1,100 (with income limit) | $5,000 annual exemption |
| 30-49% benefit | Credit up to $1,100 (with income limit) | $2,500 annual exemption |
| Assessed value cap | None (but income-limited) | $250,000 assessed value |
| Re-filing | Annual | Annual (except 100% P&T) |
What Is The Exemption Worth In Real Dollars?
Missouri’s statewide average effective tax rate is approximately 0.88%, which is close to the national average. Rates vary by county and municipality, with the Kansas City and St. Louis metro areas running higher than rural Missouri and the areas around Fort Leonard Wood.
| Home value | Effective tax rate | Annual tax without exemption | Annual tax with 70%+ exemption | Monthly savings |
|---|---|---|---|---|
| $200,000 | 0.85% | $1,700 | $0 | $142 |
| $280,000 | 0.88% | $2,464 | $0 | $205 |
| $350,000 | 0.90% | $3,150 | $0 | $263 |
| $450,000 | 0.95% | $4,275 | $0 | $356 |
Home Search Impact: A veteran rated 70% or higher shopping near Fort Leonard Wood or Whiteman AFB saves $140 to $260 per month in property taxes. At current VA rates, that translates to roughly $17,000 to $32,000 in additional purchasing power. In the Kansas City or St. Louis metro areas where home prices and tax rates are higher, the savings grow further. The elimination of the income limit under the new law means high-earning veterans — including dual-military couples and defense contractors — now qualify where they did not before.
What Military Installations Are Near Missouri Communities?
Missouri has two major active military installations plus several National Guard and Reserve facilities. The housing markets around these bases vary significantly in price and tax rates.
| Military installation | County | Approx. effective rate | Annual savings (70%+ exemption) | Median home price (2026 est.) |
|---|---|---|---|---|
| Fort Leonard Wood | Pulaski | 0.75% | $1,875 on $250K | $225,000 |
| Whiteman AFB | Johnson | 0.80% | $1,600 on $200K | $195,000 |
| Kansas City (Guard/Reserve) | Jackson / Clay | 1.10% | $3,850 on $350K | $290,000 |
| St. Louis (Guard/Reserve) | St. Louis County | 1.25% | $4,375 on $350K | $275,000 |
How Does This Change Your VA Loan Math?
The new 2026 exemption fundamentally changes the VA loan calculation for Missouri veterans rated 70% or higher. Under the old system, the maximum $1,100 credit barely moved the needle. Under the new system, eliminating the entire property tax bill has a material impact on DTI ratios and buying power.
- PITI impact: On a $280,000 home at 6.5% with $0 down, removing $205/month in tax escrow drops your total PITI from approximately $1,975 to $1,770. That is a 10.4% reduction in your housing payment.
- DTI improvement: At $5,500/month gross income, that $205 reduction drops your housing DTI from 35.9% to 32.2%. That moves a borderline file well into AUS approve/eligible territory.
- Buying power shift: The $205 monthly savings supports an additional $25,000 to $30,000 in purchase price at 6.5%. A veteran who qualifies for $280,000 without the exemption may qualify for $305,000 to $310,000 with it.
- Partial rating impact: Even the $2,500 exemption for 30% to 49% rated veterans reduces monthly escrow by roughly $208 (if the tax bill is under $2,500) — which can shift DTI by 3 to 4 percentage points on moderate incomes.
Where Do Veterans Actually File In Missouri?
Missouri property tax exemptions under the new law are filed with your local assessor or collector — not the Missouri Department of Revenue. The process is county-level, and each of Missouri’s 114 counties plus the City of St. Louis has its own assessor.
- Find your local assessor: Search “[Your County] Missouri assessor” or visit the Missouri State Tax Commission website for a directory. Near military bases: Pulaski County (Fort Leonard Wood), Johnson County (Whiteman AFB).
- Gather your documentation: VA rating letter showing your service-connected disability percentage. DD-214 or equivalent showing honorable discharge. Proof of Missouri residency and homestead occupancy (driver’s license or utility bill matching the property address).
- File the exemption application: Submit the application and documentation to your local assessor or collector. The specific form may vary by county — check with your assessor for the correct form.
- Deadline: Applications must be submitted no later than April 1 for the current tax year. Do not miss this deadline — late applications may not be processed until the following year.
- Annual renewal: Veterans rated below 100% P&T must reapply annually. Set a calendar reminder for February to ensure you file before the April 1 deadline each year.
Process Watchpoint: The new Missouri property tax exemption took effect January 1, 2026. Many county assessor offices are still implementing the new system. If your county assessor is unfamiliar with the new law, reference HB 921 (the Disabled Veteran Property Tax Relief Act) and HB 700. Bring a copy of the legislation if needed. Some counties may have new application forms specifically for the 2026 exemption — check your county’s website or call ahead before visiting.
What About The Assessed Value Cap?
The new Missouri exemption applies to properties with an assessed value under $250,000. In Missouri, residential property is assessed at 19% of market value. This means the $250,000 assessed value cap translates to approximately $1.3 million in market value for a residential home. For the vast majority of veteran homebuyers near military installations, this cap will not be a limiting factor.
If you are purchasing a high-value home in the Kansas City or St. Louis metro areas, verify that your property’s assessed value falls under the $250,000 threshold. Your county assessor can provide the assessed value before you close.
Do Surviving Spouses Qualify Under The New Missouri Law?
The new 2026 legislation primarily targets disabled veterans. Surviving spouse eligibility under the new tiered system may vary — check directly with the Missouri Department of Revenue or your county assessor for the most current rules. Under the existing law, surviving spouses of former POWs with 100% disability retained the full exemption. The broader surviving spouse applicability of the new tiered system is being clarified as counties implement the legislation.
If you are a surviving spouse of a disabled veteran in Missouri, contact your county assessor to determine your eligibility under both the new 2026 law and any existing provisions that may apply to your situation.
What Is The Combined Tax Benefit For Missouri Veterans?
Missouri’s new exemption, combined with the VA funding fee exemption and the state’s affordable housing market, creates a much stronger package than what was available before 2026.
Deal Math: A 100% P&T veteran buying a $280,000 home near Fort Leonard Wood at a 0.88% effective rate saves $2,464 per year in property taxes — $205 per month. VA funding fee exemption saves $6,020 upfront (2.15% of $280,000). Over the first 5 years, the total benefit package is $18,340. Under the old system, the same veteran would have received at most $5,500 in property tax credits over 5 years (if they even qualified under the income limit). The new law more than triples the total benefit. If you were on the fence about buying in Missouri, the 2026 changes tilt the math significantly in your favor.
The Bottom Line
Missouri dramatically expanded its disabled veteran property tax benefits starting January 1, 2026. Veterans rated 70% or higher now receive a full property tax exemption on their primary residence — no income limit, with an assessed value cap of $250,000 (approximately $1.3 million market value). Veterans rated 50% to 69% get a $5,000 annual exemption, and those rated 30% to 49% get $2,500. On a $280,000 home at 0.88%, a 70%+ rated veteran saves $2,464 per year. File with your local assessor or collector before April 1 with your VA rating letter and DD-214. If you are a Missouri veteran with a 30%+ rating, this new benefit is substantially better than the old property tax credit system — apply now.
Frequently Asked Questions
When did the new Missouri property tax exemption take effect?
January 1, 2026. The new tiered exemption system applies to the 2026 tax year and beyond. If you previously received the old property tax credit, you should switch to the new exemption — it provides substantially more relief for most veterans.
Do I still qualify for the old property tax credit?
The old property tax credit (up to $1,100 with income limits) may still be available for veterans rated below 30% who do not qualify for the new tiered exemption. Contact the Missouri Department of Revenue to determine which program provides better relief for your specific situation.
Will my lender adjust my escrow after the exemption is approved?
Not automatically. Once the exemption appears on your property tax record, request an escrow re-analysis from your loan servicer. Your monthly payment will decrease and the servicer will refund any escrow overage.
Can I combine the property tax exemption with the VA funding fee waiver?
Yes. Veterans with a 10% or higher service-connected disability rating are exempt from the VA funding fee. The Missouri property tax exemption is a separate state benefit administered by a different agency. You receive both.
What is the assessed value cap, and does it affect most homes?
The new exemption applies to properties with an assessed value under $250,000. Missouri assesses residential property at 19% of market value, so the $250,000 assessed value cap translates to approximately $1.3 million in market value. This cap will not affect the vast majority of veteran homebuyers.
Do I need to reapply every year?
Veterans rated below 100% P&T must reapply annually before the April 1 deadline. Veterans with a 100% permanent and total rating may be exempt from annual re-filing — confirm with your county assessor.
Can I get the exemption on a second home or rental property?
No. The Missouri disabled veteran property tax exemption applies only to your primary residence. Rental properties, second homes, and investment properties do not qualify.
Does IU (Individual Unemployability) qualify for the full exemption?
If the VA rates you as permanently and totally disabled due to IU, you should qualify for the full exemption. Bring your IU determination letter showing your total disability status when you apply with the county assessor.
What happens if my disability rating changes?
If your rating increases, you can re-file for a higher exemption tier. If your rating decreases, your exemption will be adjusted to the new tier at your next annual re-filing. Contact your county assessor to update your application.
Is the new exemption retroactive?
The new law is effective January 1, 2026 and applies to the 2026 tax year going forward. It is not retroactive to prior tax years. However, you may still be able to claim the old property tax credit for prior years if you were eligible but did not apply.
Does the 70% threshold mean exactly 70%, or 70% and above?
The full exemption applies to veterans with a disability rating of 70% or higher. A combined rating of exactly 70% qualifies for the full property tax exemption on the primary residence.
What if my county assessor is not aware of the new 2026 law?
Reference HB 921 (the Disabled Veteran Property Tax Relief Act) and HB 700 when speaking with your assessor. Bring a printed copy of the legislation if needed. Some counties may need time to update their systems and forms for the new exemption tiers.
Resources Used
- Missouri DOR — Property Tax Credit
- HB 921 — Disabled Veteran Property Tax Relief Act
- MyArmyBenefits — Missouri Veterans Benefits
- VA Disability Compensation — VA.gov
