Property Tax Exemptions By Disability Rating
Utah Disabled Veteran Property Tax Exemptions in 2026
Utah scales its disabled Veteran property tax exemption directly to your VA rating percentage. A 100% P&T Veteran gets the maximum exemption on their primary residence, up to $535,459 in taxable value for 2026. At Utah’s average effective rate of 0.52%, a Veteran with a $425,000 home near Hill AFB saves roughly $2,210 per year. That is $184 per month back in your pocket, reducing your VA loan payment and improving your DTI ratio.
100% P&T Exemption
- Maximum exemption up to $535,459 in taxable value for 2026
- Includes IU (Individual Unemployability) paid at the 100% rate
- Applies to primary residence and up to 1 acre of land
- File Form PT-025 with your county assessor before September 1
Partial Disability (10–90%)
- Exemption scales proportionally, 50% rating gets 50% of the max exemption
- No exemption below 10% disability rating
- Must be VA service-connected disability
- Have your VA rating letter and DD-214 ready when you apply
Filing And Deadlines
- Apply with your county assessor, not the state or VA
- Deadline is September 1 for the current tax year
- Must reapply annually in most Utah counties
- Apply before September 1 to lock in this year’s exemption
VA Loan Impact
- Lower tax escrow = lower monthly PITI = better DTI ratio
- $184/month savings on a $425K home adds ~$22K in buying power
- Tell your lender about the exemption so escrow is set correctly
- Get your exemption approved before or shortly after closing
Frequently Asked Questions
How much does a 100% disabled Veteran save on property tax in Utah?
A 100% P&T Veteran receives the full exemption up to $535,459 in taxable value. On a $425,000 home at Utah’s average 0.52% effective rate, that saves approximately $2,210 per year, about $184 per month.
Does the Utah exemption scale with my disability percentage?
Yes. Utah multiplies the maximum exemption amount by your VA disability rating percentage. A 50% rated Veteran gets 50% of the exemption. There is no benefit below 10%.
Where do I apply for the Utah disabled Veteran property tax exemption?
File Form PT-025 with your county assessor’s office. You need your VA rating letter and proof of homestead occupancy. The deadline is September 1 for the current tax year.
The Bottom Line Up Front
Utah provides a percentage-based property tax exemption for disabled Veterans with a 10% or higher VA rating. The exemption amount scales directly with your disability percentage, a 100% P&T Veteran receives the maximum exemption of $535,459 in taxable value for 2026, while a 50% rated Veteran gets half that amount. On a $425,000 home near Hill AFB at the state’s average effective rate of 0.52%, the full exemption saves approximately $2,210 per year. That money either stays in your pocket or supports a higher mortgage payment through improved DTI.
Utah’s system is straightforward compared to states that use flat-dollar exemptions. Your benefit is your rating multiplied by the cap. If your VA loan is in the planning stage, understanding this exemption early lets your lender calculate escrow correctly from day one, no surprise adjustments after closing.
What To Do Based On Your Situation
- Buying a home in Utah soon: Apply for the exemption immediately after closing. Notify your lender of your disability rating during preapproval so escrow reflects the reduced tax liability from the start.
- Already own a home in Utah: If you have not applied, file Form PT-025 with your county assessor before September 1. Contact the assessor to determine if retroactive benefits apply in your county.
- Surviving spouse of a Utah Veteran: Utah extends the exemption to surviving spouses of Veterans who died from service-connected causes. File with your county assessor with the Veteran’s death certificate and VA documentation.
What Are The Utah Disability Rating Exemption Tiers?
Utah uses a proportional system under §59-2-1104. The state sets a maximum taxable value exemption each year, and your benefit equals that amount multiplied by your VA disability rating percentage. For 2026, the maximum exemption is $535,459 in taxable value.
This means a Veteran with a 70% rating receives 70% of $535,459, or $374,821 in exempt taxable value. The system rewards higher ratings proportionally rather than using fixed-dollar tiers like many other states.
| VA disability rating | Exempt taxable value | Annual savings on $425K home at 0.52% | Monthly PITI reduction |
|---|---|---|---|
| 10% | $53,546 | $278 | $23 |
| 30% | $160,638 | $835 | $70 |
| 50% | $267,730 | $1,105 (on remaining taxable value) | $92 |
| 70% | $374,821 | $1,549 | $129 |
| 100% P&T or IU | $535,459 | $2,210 | $184 |
| Surviving spouse (service-connected death) | $535,459 | $2,210 | $184 |
Deal Math: A 100% P&T Veteran buying a $500,000 home in Davis County near Hill AFB at a 0.58% effective rate saves $2,900 per year, $242 per month. Combined with the VA funding fee exemption (saving $10,750 upfront on a $500,000 loan), the total first-year benefit is $13,650. Over a 30-year mortgage, the property tax savings alone total $87,000.
What Is The Exemption Worth In Real Dollars?
The dollar value depends on your home’s assessed value and your county’s effective tax rate. Utah’s statewide average effective rate is approximately 0.52%, but rates vary by county. Counties near Military installations tend to run slightly higher due to school funding and infrastructure needs.
| Home value | Effective tax rate | Annual tax without exemption | Annual tax with 100% exemption | Monthly savings |
|---|---|---|---|---|
| $300,000 | 0.50% | $1,500 | $0 | $125 |
| $425,000 | 0.52% | $2,210 | $0 | $184 |
| $535,000 | 0.55% | $2,943 | $0 | $245 |
| $650,000 | 0.58% | $3,770 | $665 (tax on value above $535,459) | $259 |
Home Search Impact: A Veteran with the 100% exemption shopping near Hill AFB (Davis County, effective rate ~0.56%) gains approximately $150 to $250 per month in payment capacity compared to a non-exempt buyer at the same income level. At current VA rates, that translates to roughly $18,000 to $30,000 more in purchasing power. In the competitive Ogden-Clearfield corridor where median prices run $450,000 to $550,000, that extra capacity can be the difference between a competitive offer and getting outbid.
Who Is Eligible For The Utah Exemption?
Eligibility under Utah Code §59-2-1104 requires a VA service-connected disability rating of 10% or higher. The property must be your primary residence with up to 1 acre of land. Personal property held exclusively for personal use also qualifies.
Veterans rated at 100% P&T or receiving IU at the 100% rate get the maximum exemption. The benefit is not available for non-service-connected disabilities or properties used in a trade or business. If your occupancy situation involves a PCS move, coordinate with your county assessor to confirm continued eligibility.
- Service-connected requirement: Only VA service-connected disability ratings qualify. A non-service-connected rating from another agency does not count.
- Primary residence only: The property must be your homestead, no rental properties, second homes, or investment properties.
- 1-acre limit: The exemption covers your home and up to 1 acre. If your lot exceeds 1 acre, the excess is taxed at the normal rate.
- Annual reapplication: Most Utah counties require annual reapplication. Check with your county assessor for specific requirements.
How Much Is The Exemption By Rating Tier?
The math is simple: multiply the 2026 cap ($535,459) by your VA disability percentage. If your home’s taxable value falls below your exempt amount, you pay $0 in property tax. If it exceeds the exempt amount, you pay tax only on the difference.
For context, the 2026 median home price in the Ogden-Clearfield metro area (closest to Hill AFB) runs approximately $475,000. A Veteran with a 100% rating on a median-priced home in that area pays $0 in property tax because the home value falls below the $535,459 cap. A Veteran with a 50% rating on that same home would have approximately $207,270 in taxable value remaining, generating a tax bill of roughly $1,078 per year instead of the full $2,470.
How Do You Apply For The Utah Exemption?
File Form PT-025 (Veteran with a Disability Property Tax Exemption Application) with your county assessor’s office. The application deadline is September 1 for the current tax year. Utah does not process these at the state level, each county handles its own applications.
- Get your documents ready: VA disability rating letter showing your service-connected percentage, DD-214 (discharge papers), and proof of homestead occupancy (utility bill, driver’s license matching the property address).
- Find your county assessor: Search “[Your County] assessor Utah” online. Key counties near Military bases: Davis County (Hill AFB), Tooele County (Tooele Army Depot/Dugway), Salt Lake County (Camp Williams area).
- File Form PT-025: Available at your county assessor’s office or online through the Utah State Tax Commission website. Attach all required documentation.
- Deadline: September 1 for the current tax year. If you miss it, you may have to wait until the following year. Some counties accept late filings, call and ask.
- Reapply annually: Most counties require annual renewal. Set a reminder for July or August each year.
Process Watchpoint: Unlike Texas, which allows retroactive claims for up to 5 prior years, Utah’s retroactive policy varies by county. If you have been eligible but never applied, contact your county assessor immediately to ask about recovering prior-year benefits. Do not assume you can file late and get a refund, confirm with the county first.
Where Do Veterans File Near Utah Military Bases?
Utah has four major Military installations. Tax rates and median home prices vary by county, which affects the dollar value of your exemption.
| Military base | County | Approx. effective rate | Annual savings on $425K home (100% P&T) | Median home price (2026 est.) |
|---|---|---|---|---|
| Hill AFB | Davis | 0.56% | $2,380 | $475,000 |
| Tooele Army Depot / Dugway | Tooele | 0.54% | $2,295 | $410,000 |
| Camp Williams | Salt Lake / Utah | 0.52% | $2,210 | $535,000 |
| NSA Utah (Camp Williams area) | Salt Lake | 0.53% | $2,253 | $535,000 |
How Does This Change Your VA Loan Math?
The property tax exemption changes your debt-to-income ratio because it reduces the tax escrow portion of your monthly PITI payment. Every dollar saved on taxes either stays in your pocket or supports a higher mortgage amount.
- PITI impact: On a $425,000 home at 6.5% with $0 down, removing $184/month in tax escrow drops your total PITI from approximately $2,870 to $2,686. That is a 6.4% reduction in your housing payment.
- DTI improvement: At $6,500/month gross income, that $184 reduction drops your housing DTI from 44% to 41%, right at the VA benchmark. Files that would otherwise need compensating factors may get a clean AUS approval with the exemption factored in.
- Buying power shift: The $184 monthly savings, redirected toward principal and interest, supports an additional $22,000 to $28,000 in purchase price at 6.5%. A Veteran who qualifies for $400,000 without the exemption may qualify for $425,000 with it.
- Escrow adjustment: If you close before the exemption is approved, your lender will initially escrow for the full tax amount. Once the county processes your exemption, request an escrow re-analysis, your monthly payment will decrease and the lender will refund any overage.
Deal Math: A 70% rated Veteran buying a $450,000 home in Davis County gets $374,821 exempt from taxation. The remaining $75,179 in taxable value at a 0.56% rate generates a $421 annual tax bill instead of $2,520. That $2,099 annual savings ($175/month) improves their DTI calculation and reduces closing costs tied to escrow funding at settlement.
Do Surviving Spouses Keep The Exemption In Utah?
Yes, with conditions. Utah extends the property tax exemption to the un-remarried surviving spouse of a Veteran who died from service-connected causes. The surviving spouse receives the same exemption amount on the same homestead.
The key distinction: the Veteran must have died from a service-connected cause, not simply had a service-connected disability. The surviving spouse must continue to occupy the home as their primary residence and must not remarry. If the surviving spouse moves to a new property, they need to reapply with the new county assessor and provide updated documentation.
Remarriage terminates the benefit permanently. If the subsequent marriage ends through divorce or death, the exemption cannot be reinstated. This is a one-way door.
The Bottom Line
Utah provides a proportional property tax exemption based on your VA disability rating, with a 2026 cap of $535,459 in exempt taxable value. A 100% P&T Veteran on a typical $425,000 home near Hill AFB saves approximately $2,210 per year, $184 per month off the VA loan payment. File Form PT-025 with your county assessor before September 1 each year. If you are buying with a VA loan, tell your lender about the exemption during preapproval so escrow is calculated correctly from day one.
Frequently Asked Questions
Should I apply for the exemption before or after closing on my VA loan?
After closing, you cannot file until you own the home and it is your homestead. Apply immediately after closing to minimize the time you pay full taxes.
Will my lender adjust my escrow after the exemption is approved?
Not automatically. Once the exemption appears on your tax records, request an escrow re-analysis from your lender. Your monthly payment will decrease and any overage will be refunded.
Does the property tax exemption affect my VA loan qualification?
Yes. Lower property taxes mean a lower total PITI payment, which improves your DTI ratio and may increase the purchase price you qualify for. Notify your lender about your disability rating during preapproval.
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 both the VA funding fee and Utah property tax. These are separate benefits administered by different agencies.
Does IU (Individual Unemployability) qualify for the full exemption?
Yes. Utah treats IU the same as a 100% schedular rating for property tax purposes. If the VA pays you at the 100% rate due to IU, you receive the full exemption.
What happens if my home value exceeds the $535,459 exemption cap?
You pay property tax only on the amount above the cap. On a $650,000 home, you would pay tax on $114,541, a significantly reduced bill compared to the full assessed value.
Do I need to reapply every year?
Most Utah counties require annual reapplication. Check with your county assessor for specific renewal requirements and deadlines. Set a calendar reminder for July or August each year.
What if my disability rating changes?
If your rating increases, re-file for a higher exemption. If your rating decreases, your exemption amount adjusts proportionally. The county assessor uses the rating in effect as of the assessment date.
Can I get the exemption on a second home or rental property?
No. The Utah disabled Veteran property tax exemption applies only to your primary residence homestead and up to 1 acre of land. Rental properties, second homes, and investment properties do not qualify.
Does the exemption cover all property taxes or just certain jurisdictions?
The exemption applies to all property tax levied on your homestead, county, city, school district, and special districts. It is a reduction in taxable value, which flows through to all taxing authorities.
Can a surviving spouse transfer the exemption to a new home?
A surviving spouse can reapply at a new property, but must meet all eligibility requirements including proving the Veteran died from a service-connected cause. Contact the new county assessor for the reapplication process.
How long does it take to get the exemption approved?
Processing times vary by county, but most applications are processed within 2 to 6 weeks of filing. The exemption applies to the full tax year in which it is approved.
Resources Used
- UTAH, Pt 025
- Utah Code §59-2-1104, Veteran Exemption Statute
- Utah Tax Commission Pub 36, Property Tax Abatement and Exemption Programs
- Veterans Affairs, Disability Compensation
