Oregon Disabled Veteran Property Tax Exemptions in 2026
Does Oregon Exempt Disabled Veterans From Property Tax?
Oregon provides a partial assessed-value exemption, not a full tax elimination. Under ORS 307.250, a qualifying Veteran with a 40% or higher disability rating can exempt approximately $27,092 (basic) or $32,512 (service-connected) of assessed value from property taxes. The exemption is income-tested at 185% of the federal poverty level for certain categories. There is no provision to eliminate the entire tax bill regardless of disability rating. File Form 303-086 with the county assessor by April 1. [1] [2] [3]
Oregon Veteran Exemptions at a Glance
Choose an area to jump to the statute, amounts, income test, application steps and VA loan impact.
What Does Oregon Law Actually Provide?
Two tiers of partial assessed-value relief, not full tax elimination.
Who Qualifies for the Oregon Exemption?
Disability rating, income limit and documentation requirements.
What Is the Exemption Worth in Real Dollars?
County-level effective rates, savings on actual Oregon home values.
How Do You Apply and Meet the Deadline?
Form, documentation, county assessor filing and extended deadlines.
How Does the Exemption Affect Your VA Loan?
Escrow, DTI impact and how it compares to VA loan benefits.
Do Surviving Spouses Keep the Exemption?
Unremarried spouse provisions, documentation and continuation.
How Does Oregon Compare to Neighboring States?
Washington, California, Idaho and Nevada side by side.
Real-World Oregon Veteran Scenarios
First-time buyer, existing homeowner, surviving spouse and relocating Veteran.
What Mistakes Can Cost You the Exemption?
Missed deadlines, income test failures and documentation gaps.
Frequently Asked Questions
Straight answers to common Oregon Veteran property tax searches.
Sources and Verification Method
Statute, DOR guidance, VA.gov and federal references.
Oregon Housing Market Context for Veterans
Home values, tax caps, no active-duty installations and Guard presence.
Oregon’s exemption is partial, income-tested and small relative to other states. A qualifying Veteran saves roughly $200 to $320 per year on a typical Oregon home. The VA loan’s zero down payment, no PMI and funding fee exemption provide substantially more financial value.
What Does Oregon Law Actually Provide?
ORS 307.250 creates two tiers of assessed-value reduction for qualifying Veterans. Neither tier eliminates the property tax bill. Both amounts increase by 3% annually. [1] [2]
Basic Veteran Exemption
The statute sets a $15,000 base that increases 3% annually. For the 2025-26 tax year, the compounded amount is approximately $27,092. Applies to homestead or personal property. Requires a 40% or higher disability rating and may require an income test.
Service-Connected Exemption
The statute sets an $18,000 base that increases 3% annually. For the 2025-26 tax year, the compounded amount is approximately $32,512. Requires VA or Armed Forces certification of a service-connected disability of 40% or higher. The income test may not apply to this category.
| Feature | Basic Veteran (subsection 2) | Service-Connected (subsection 3) |
|---|---|---|
| Statutory base amount | $15,000 | $18,000 |
| Approximate 2025-26 amount | $27,092 | $32,512 |
| Annual adjustment | 3% compounding | 3% compounding |
| Minimum rating | 40% disability | 40% service-connected disability |
| Income test | May apply: 185% of federal poverty level | May not apply when VA-certified |
| Certification source | VA, Armed Forces or licensed physician | VA or Armed Forces only |
| Surviving spouse eligible | Yes, if unremarried | Yes, with additional conditions |
Who Qualifies for the Oregon Exemption?
Oregon requires a minimum 40% disability rating, which is higher than many states. The income test adds a qualification hurdle not found in most other Veteran property tax programs. [1] [2] [3]
What You Need to Establish
- VA, Armed Forces or licensed physician certification of 40% or higher disability
- Disability certificate dated within three years prior to filing (one year for physician certificates)
- Honorable discharge or qualifying service documentation (DD-214)
- Oregon homestead ownership and primary-residence occupancy
- Income below 185% of federal poverty guidelines (for certain categories under subsection 2)
Income Test: 185% of Federal Poverty Level
- One person: $29,526 gross annual income (2026 guideline)
- Two persons: $40,036
- Three persons: $50,542
- Four persons: $61,050
- Income includes all sources: pensions, disability compensation, wages and investments
- This test applies to the subsection 2 basic exemption with physician certification; it may not apply to all subsection 3 applicants
Veterans whose VA disability rating is between 10% and 30% do not qualify for either Oregon exemption. Oregon requires 40% or higher, which excludes a substantial portion of the disabled Veteran population. If your combined rating is close to 40%, the VA disability calculator can help you understand how combined ratings work. [1]
What Is the Exemption Worth in Real Dollars?
Oregon’s effective property tax rate averages 0.78% statewide, below the national average of 0.89%. County rates vary significantly. The exemption amount is fixed regardless of home value, so the annual savings are the same whether the home is worth $350,000 or $700,000. [5]
| County | Effective rate | Median home value | Illustrative annual savings | Illustrative monthly savings |
|---|---|---|---|---|
| Multnomah (Portland) | 0.98% | $565,100 | $319 | $27 |
| Washington (Beaverton/Hillsboro) | 0.84% | $610,700 | $273 | $23 |
| Lane (Eugene) | 0.77% | $448,000 | $250 | $21 |
| Marion (Salem) | 0.79% | $438,600 | $257 | $21 |
| Clackamas (Oregon City) | 0.81% | $639,300 | $263 | $22 |
x
=
The illustrative savings above use published county effective rates and the service-connected exemption amount. Your actual savings depend on the tax rate applied to your specific property, which can differ from the county median. Oregon’s Measures 5 and 50 cap tax rates and assessed-value growth, so the effective rate on your tax bill may not match market-value percentages. [5]
Why the Savings Are the Same at Any Home Value
Oregon’s exemption removes a fixed dollar amount of assessed value. The $32,512 reduction produces roughly $250 to $320 in annual savings whether the home is assessed at $350,000 or $700,000. Higher home values do not increase the exemption.
How Oregon Compares to the National Picture
Many states offer a full tax elimination for 100% P&T Veterans. Oregon never eliminates the full bill at any disability rating. For a broader comparison of state programs, see the Disabled Veteran Property Tax Calculator. The difference between a $300/year Oregon exemption and a $6,000/year full exemption in another state is the context that matters for relocation decisions.
How Do You Apply and Meet the Deadline?
File Form 303-086 with the county assessor where the property is located. The exemption is not automatically applied by the VA, the lender or the county at closing. [2] [3] [4]
Download Form 303-086 (Disabled Veteran or Surviving Spouse Exemption Claim) from the Oregon DOR forms library or your county assessor’s office.
Prepare your DD-214, a VA disability rating certificate dated within three years, and proof of Oregon homestead occupancy. If filing under the physician-certified path, bring the income statement and a certificate dated within one year.
Form 303-086 includes a sworn statement of prior-calendar-year gross income including disability compensation. Exceeding 185% of the federal poverty guideline for your household size disqualifies you from the subsection 2 exemption.
Submit the completed form and attachments to the county assessor’s office where the property is located. Oregon has 36 counties, each with its own assessor.
Properties acquired between March 1 and July 1: file within 30 days of acquisition. Previously approved Veterans who miss April 1: may file by May 1 with a $10 late fee. Recent VA certification: file within six months of receiving the rating.
Once approved, the exemption continues without annual refiling as long as ownership, occupancy and qualifying conditions remain unchanged. Report any changes to the assessor.
Required Documents
- Form 303-086, completed and signed
- DD-214 or Military discharge document
- VA or Armed Forces disability rating certificate (within 3 years)
- Sworn income statement (prior calendar year)
- Proof of Oregon homestead occupancy
- Trust documentation if property is held in trust
Key Oregon Counties for Veterans
- Multnomah: Portland metro core
- Washington: Beaverton, Hillsboro, Tigard
- Clackamas: Oregon City, Lake Oswego
- Lane: Eugene, Springfield
- Marion: Salem (state capital)
- Deschutes: Bend (growing Veteran retiree community)
The VA loan occupancy guide addresses mortgage occupancy rules separately. Oregon’s property tax homestead requirement is a state-law determination, not a VA mortgage rule. [2] [4]
How Does the Exemption Affect Your VA Loan?
The Oregon exemption reduces the property tax portion of your monthly escrow payment by roughly $21 to $27. It does not change your interest rate, principal, or insurance. The VA loan’s own benefits provide substantially more financial impact. [7] [8]
Illustrative PITI Without Exemption
$565,100 Multnomah County home at 6.5% with $0 down. Principal and interest: $3,571. Insurance: $150. Property tax escrow: $462.
This estimate uses the full Multnomah effective rate of 0.98% before the Veteran exemption.
Illustrative PITI With Exemption
Same home, same loan. Property tax escrow reduced by approximately $27 per month from the $32,512 assessed-value exemption.
The $27 monthly difference does not meaningfully change DTI ratio calculations or qualification outcomes.
| Benefit | Illustrative value | Type |
|---|---|---|
| $0 down payment versus 20% conventional | $113,020 kept in reserves | One-time, at closing |
| VA funding fee exemption (disabled Veteran) | $12,150 saved at closing | One-time, at closing |
| No PMI versus 5% down conventional | Approximately $235/month | Recurring, monthly |
| Seller concessions up to 4% | Up to $22,604 in closing cost coverage | Negotiated, at closing |
| Oregon property tax exemption | $319/year ($27/month) in Multnomah County | Recurring, annual |
A VA loan escrow account collects property taxes monthly. When the assessor approves your exemption and the resulting tax bill changes, your mortgage servicer may conduct an escrow analysis and adjust the monthly payment. The servicer is not automatically required to reanalyze immediately, so the adjustment may take one billing cycle. Confirm the change with your servicer after receiving the assessor’s approval. [8]
Do Surviving Spouses Keep the Exemption?
ORS 307.250 extends the exemption to qualifying unremarried surviving spouses under specific conditions. The tier of exemption depends on how the Veteran qualified. [1] [2]
| Spouse situation | Which exemption tier | Key conditions |
|---|---|---|
| Surviving spouse of a Veteran who qualified under subsection 2 | Basic: approximately $27,092 | Must remain unmarried and occupy the homestead |
| Surviving spouse, Veteran died from service-connected injury or illness | Service-connected: approximately $32,512 | Death from service-connected cause, must remain unmarried |
| Surviving spouse, Veteran received maximum exemption for at least one year after 1981 | Service-connected: approximately $32,512 | Prior exemption history required, must remain unmarried |
| Surviving spouse who remarries | Exemption terminates | Remarriage ends eligibility regardless of circumstances |
What Surviving Spouses File
- Form 303-086 with the surviving spouse section completed
- Veteran’s death certificate
- Marriage certificate or domestic partnership registration
- DD-214 and VA documentation from the Veteran’s file
Continuation Without Refiling
An approved surviving spouse does not need to refile annually as long as ownership, occupancy and marital status remain unchanged. Notify the assessor of any changes. For a broader look at how federal survivor benefits interact with VA home loans, see surviving spouse funding fee exemptions.
How Does Oregon Compare to Neighboring States?
Oregon’s partial assessed-value exemption is modest compared to several neighbors. Veterans making relocation decisions should understand what each state provides before committing to a purchase.
| State | 100% P&T benefit | Partial-rating benefit | Structure |
|---|---|---|---|
| Oregon | Approximately $32,512 off assessed value | Same benefit at 40%+ rating | Partial assessed-value reduction, income-tested |
| Washington | Full exemption available for certain Veterans | Partial exemption scaled by rating and income | Income-based program with local assessor administration |
| California | Full exemption for 100% disabled Veterans | Partial exemption at lower ratings | Assessment reduction with full elimination for qualifying Veterans |
| Idaho | Full exemption on qualifying property | Partial benefit varies by county | County-administered with full elimination path |
| Nevada | Full exemption for 100% P&T Veterans | Partial exemptions scaled by rating | Tax bill reduction, not just assessed-value adjustment |
Oregon’s lack of a full exemption at any disability level is its distinguishing feature. A 100% P&T Veteran in Oregon receives approximately $32,512 off assessed value, saving roughly $300 per year. The same Veteran in a state with a full exemption might save $5,000 to $10,000 per year. Oregon compensates in other ways: it has no state sales tax, and its Measures 5 and 50 cap property tax rates and assessed-value growth. But the Veteran-specific property tax benefit is among the most limited in the country.
Real-World Oregon Veteran Scenarios
The following cases illustrate how the exemption, income test and VA loan interact in practice. None represents a guaranteed outcome. [1] [2] [7]
100% P&T Veteran in Portland
The Veteran has a $3,700 monthly VA disability payment. Gross income including disability: $44,400. Single household. The 185% poverty threshold for one person is $29,526. The Veteran’s income exceeds the subsection 2 threshold but may qualify under subsection 3 (service-connected, where the income test may not apply). The Veteran confirms with the Multnomah County assessor before closing.
60% Rated Veteran in Salem
The Veteran and spouse have combined income of $38,000 including VA disability compensation. Two-person threshold is $40,036. They qualify for the basic exemption under subsection 2. Annual savings at Marion County’s 0.79% rate: approximately $214. The Veteran files Form 303-086 with the Marion County assessor before April 1.
Unremarried Spouse in Eugene
The Veteran died from a service-connected condition. The surviving spouse files Form 303-086 with the Lane County assessor using the Veteran’s DD-214 and death certificate. The service-connected exemption of $32,512 continues. At Lane County’s 0.77% rate, the annual savings are approximately $250. If the spouse remarries, the exemption ends.
PCS Veteran Comparing Oregon to Washington
A Veteran with a 100% P&T rating is leaving active duty and considering Portland versus the Joint Base Lewis-McChord area in Washington. Oregon’s exemption saves roughly $319 per year. Washington’s program may offer a full exemption for qualifying Veterans. The Veteran compares actual tax bills and total cost of housing in each location before committing. Use Oregon BAH rates and Washington BAH rates for current allowance comparisons.
What Mistakes Can Cost You the Exemption?
The most common mistakes are missing the April 1 deadline, failing the income test and submitting an expired disability certificate. [2] [3] [4]
Before You File
- Verify your disability certificate is dated within three years (one year for physician certificates)
- Calculate gross income including VA disability compensation against the 185% poverty threshold for your household size
- Confirm your county assessor’s office address and hours
- Identify whether you file under subsection 2 (basic) or subsection 3 (service-connected)
- Prepare all supporting documents before the April 1 deadline
- If property was acquired between March 1 and July 1, file within 30 days
Before You Budget for a Home
- Do not assume the exemption changes your VA loan qualification; the $21 to $27 monthly difference is negligible for DTI purposes
- Use actual county tax rates, not the statewide average
- Separate the one-time VA funding fee exemption from the annual property tax benefit
- Do not budget for the exemption until the assessor confirms approval
- Remember the income test: disability compensation counts toward the gross income threshold
- Confirm the exemption applies only to primary-residence homestead property
Oregon Housing Market Context for Veterans
Oregon has no major active-duty Military installations. The nearest large base is Joint Base Lewis-McChord in Washington. Oregon’s Veteran population is primarily retirees, National Guard and Reserve members, and Veterans who settled in the Pacific Northwest after service.
No Sales Tax
Oregon has no state sales tax, which benefits every resident. That structural advantage partially offsets the modest property tax exemption, though it does not appear on a tax bill or in your escrow calculation.
Measure 5 and 50 Caps
Oregon’s property tax system limits total levies (Measure 5) and assessed-value growth at 3% per year (Measure 50). These caps keep tax growth predictable but also mean assessed values often trail market values significantly.
Oregon Guard Presence
Oregon Air National Guard operates from Portland International Airport (142nd Wing) and Kingsley Field in Klamath Falls. The Oregon Army National Guard has facilities across the state. Guard members deployed on qualifying service may be eligible for the active-duty Military exemption under a separate statute.
For Veterans comparing housing costs across the Pacific Northwest, 2026 Oregon BAH rates reflect the allowances available for each Military Housing Area. The VA home loan program applies in every state, but local market conditions and property tax benefits vary substantially. [5]
Frequently Asked Questions
Quick answers to the questions Oregon Veterans ask when evaluating property tax relief in 2026.
Do 100% disabled Veterans pay property taxes in Oregon?
Yes. Oregon has no full property tax exemption for disabled Veterans regardless of rating. The maximum exemption removes approximately $32,512 of assessed value, saving roughly $250 to $320 per year depending on the county rate. The remaining tax bill is still owed.
What is the minimum disability rating for Oregon’s property tax exemption?
Oregon requires a 40% or higher disability rating. Veterans with ratings between 10% and 30% do not qualify for either exemption tier under ORS 307.250.
Does VA disability compensation count as income for the Oregon exemption?
Yes, for the income-tested categories. The sworn income statement on Form 303-086 includes all gross income from the prior calendar year, including pensions and disability compensation. This can disqualify Veterans whose total income exceeds 185% of federal poverty guidelines.
Can I get the exemption on a second home or rental property?
No. ORS 307.250 applies only to your homestead property. Rental properties, second homes and investment properties do not qualify.
Does TDIU (Individual Unemployability) qualify for the Oregon exemption?
If the VA has assigned a service-connected disability rating of 40% or higher, the TDIU designation itself does not disqualify you. However, the income from TDIU compensation counts toward the income test. Bring your VA determination letter to the county assessor for a specific eligibility review.
What happens if my disability rating changes?
If your rating increases above 40%, you may become eligible to apply. If it decreases below 40%, you lose eligibility. If you move from the basic to service-connected category, you may qualify for the higher exemption amount. Notify the assessor of any rating change.
When is the filing deadline for Oregon’s Veteran property tax exemption?
April 1 for the standard filing. Properties acquired between March 1 and July 1 have 30 days from acquisition. Previously approved Veterans may file late by May 1 with a $10 fee. Veterans who recently received a VA certification may file within six months.
Does the exemption affect my VA loan qualification?
Not meaningfully. The $21 to $27 monthly savings does not change DTI calculations enough to influence a loan approval. The VA funding fee exemption, zero down payment and no PMI are the VA loan features that affect qualification and buying power.
How does Oregon’s exemption compare to Texas or other full-exemption states?
Oregon’s maximum exemption saves roughly $300 per year. Texas eliminates the entire tax bill for 100% P&T Veterans, which can save $5,000 to $15,000 per year depending on the property. Oregon’s benefit is among the smallest in the country for this comparison.
Can a surviving spouse transfer the exemption to a new home?
A surviving spouse who moves to a new Oregon home must file a new Form 303-086 with the new county’s assessor. The exemption is not automatically transferred to a different property. The surviving spouse must still meet the unremarried, ownership and occupancy requirements.
Are there other Oregon property tax programs for Veterans?
Oregon has a separate active-duty Military exemption for deployed National Guard and Reserve members. The state also offers a property tax deferral program for seniors and disabled persons. Check with your county assessor for all available programs.
Can I combine the Oregon property tax exemption with the VA funding fee exemption?
Yes. The state property tax exemption and the federal VA funding fee exemption are independent benefits with separate eligibility rules. The funding fee is a one-time closing cost; the property tax exemption is a recurring annual benefit. Qualifying disabled Veterans may receive both.
Sources and Verification Method
This article prioritizes current Oregon statute, DOR guidance, VA.gov and the CFPB. Exemption amounts are derived from the statutory 3% annual compounding formula. County effective rates are from published tax data. [1] [2] [5]
- ORS 307.250: Property of Disabled Veterans or Surviving Spouses ↗. Subsections 2 and 3: exemption amounts ($15,000 and $18,000 base), 40% minimum rating, 3% annual adjustment, income test, surviving spouse rules.
- Oregon Department of Revenue: Veteran and Surviving Spouse Exemption Guide (310-676) ↗. Current exemption amounts (approximately $27,092 and $32,512 for 2025-26), eligibility, documentation and filing.
- Oregon Department of Revenue: Disabled Veteran Exemption Claim Form (303-086) ↗. Application form, required documentation, income statement, filing instructions and deadlines.
- ORS 307.260: Claiming Procedures ↗. April 1 deadline, certificate dating, extended deadlines for new acquisitions and late filers, annual continuation rules.
- SmartAsset: Oregon Property Tax Calculator ↗. Statewide average effective rate 0.78%, county-level rates and median home values: Multnomah 0.98%, Washington 0.84%, Lane 0.77%, Marion 0.79%, Clackamas 0.81%.
- HHS ASPE: 2026 Federal Poverty Guidelines ↗. 2026 poverty guidelines: $15,960 for one person. 185% thresholds: $29,526 (1 person), $40,036 (2 persons), $50,542 (3 persons), $61,050 (4 persons).
- U.S. Department of Veterans Affairs ↗. VA purchase funding fee rates: 2.15% first-use less than 5% down. Exemptions for disability-compensation recipients and other qualifying categories.
- Consumer Financial Protection Bureau ↗. Escrow account analysis timing, shortage and surplus definitions, servicer obligations when tax bills change.
- VA Disability Compensation, VA.gov ↗. Disability rating definitions, benefit letters, compensation rates for service-connected conditions.
- Oregon Department of Revenue: Property Tax Exemptions ↗. Disabled Veteran exemption overview, active-duty Military exemption, and DOR contact information.
What We Verified
Statutory language and base amounts in ORS 307.250, DOR publication 310-676 current exemption figures, Form 303-086 requirements, ORS 307.260 filing deadlines, county effective tax rates, federal poverty guidelines and VA funding fee schedule.
What Must Be Checked Locally
Your specific property’s assessed value and applicable tax rate, the county assessor’s interpretation of the income test for your filing category, certificate dating compliance, and any additional county-specific requirements. A statewide article cannot verify a particular parcel’s tax status.
Confirm the Exemption Before You Estimate a Lower Mortgage Payment.
File Form 303-086 with the county assessor, get the approval in writing, then ask a VA loan specialist to review the complete housing payment picture including the funding fee exemption and qualification.