States that exempt disabled veterans from property tax
No state exempts all disabled veterans from property tax entirely. Every state that offers a property tax break for disabled veterans has income limits, disability rating thresholds, or both. The exemption also varies: some states reduce your tax bill by a percentage, others cap the assessed value of your home, and still others exempt only a portion of your property from taxation.
The states with the broadest disabled veteran exemptions are Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and West Virginia. Each has different rules about who qualifies, how much of your property is exempt, and whether you must have a service-connected disability rating from the U.S. Department of Veterans Affairs.
States without any property tax exemption for disabled veterans include Hawaii, New Hampshire, and Wyoming. Hawaii and Wyoming have no state income tax but do tax property. New Hampshire taxes property but not income. Other states offer exemptions only to veterans with 100% disability ratings or only in certain counties, which effectively means limited availability.
Key Takeaways
- Every state that offers a disabled veteran property tax exemption has income or disability rating limits; no state exempts all disabled veterans from all property tax.
- The exemption amount varies by state: some reduce your tax bill by a percentage, others freeze your home's assessed value, and others exempt a dollar amount or portion of the property.
- Most states require a service-connected disability rating from the VA, and many require you to have been a resident for a set period before you can claim the exemption.
- You must file a claim with your county assessor or tax collector to receive an exemption; it does not happen automatically when you receive a VA disability rating.
- States without any disabled veteran property tax exemption include Hawaii, New Hampshire, and Wyoming.
How disability rating affects your exemption amount
Most states that offer exemptions tie the benefit directly to your VA disability rating. A 50% rating may give you a smaller exemption than a 100% rating, or you may not may have access to at all below a certain threshold.
Florida, for example, exempts the homestead property of a veteran with a 100% permanent and total disability rating from all county property tax. A veteran with a lower rating receives no exemption under that program, though Florida does offer a separate homestead exemption to all homeowners regardless of veteran status. Texas exempts up to $12,000 of assessed value for a veteran with a 10% or higher disability rating, but the exemption increases with higher ratings. Virginia exempts 100% of the assessed value for a 100% disabled veteran but only 50% for a 70% or higher rating.
Some states, like Pennsylvania and West Virginia, do not tie the exemption to a specific rating threshold. Instead, they exempt property for any veteran with a service-connected disability, regardless of the percentage. You will need to check your state's rules to know whether your specific rating qualifies you.
Income limits and other restrictions
Many states cap the total household income you can earn and still receive an exemption. These limits vary widely and change year to year in some states. Louisiana, for instance, sets an income limit that adjusts annually based on federal poverty guidelines. If your household income exceeds the limit, you lose the exemption entirely, even if you have a high disability rating.
Beyond income, states often require you to have lived in the state for a minimum period—commonly one to three years—before you can claim the exemption. Some states require you to own the home outright or to have owned it for a set time. A few states limit the exemption to your primary residence only and do not allow it on rental property or vacation homes.
You must also be a U.S. citizen or permanent resident in most states. Some states require that you have been discharged from active duty under conditions other than dishonorable. Check your state's specific rules, because restrictions can eliminate your may be able to access even if you have a service-connected disability rating.
How to claim the exemption in your state
The process begins with your county assessor or tax assessor's office, not with the VA. You will need to file a claim form with the county where your property is located. The form typically asks for your VA disability rating, proof of residency, proof of homeownership, and documentation of your military service.
You will need to provide a copy of your VA disability rating letter, which you can read from VA.gov or request by mail from the VA. Some counties accept a printout from your VA account; others require an official letter. You will also need a copy of your deed or mortgage statement to prove you own the property, and a state ID or driver's license to prove you live in the state.
File your claim during the assessment period, which varies by county but is often in the spring. Missing the important date may mean waiting until the next year to claim the exemption. Once approved, the exemption typically applies to the current tax year and renews automatically each year, though you may need to recertify your disability status periodically.
State-by-state exemption amounts and ratings
| State | Minimum Disability Rating | Exemption Type | Income Limit |
|---|---|---|---|
| Alabama | Service-connected (any %) | Full exemption on homestead | Varies by county |
| Arkansas | Service-connected (any %) | Full exemption on homestead | None stated |
| Colorado | 100% | Full exemption on homestead | None stated |
| Florida | 100% permanent and total | Full exemption on homestead | None stated |
| Georgia | Service-connected (any %) | Full exemption on homestead | None stated |
| Illinois | Service-connected (any %) | Partial exemption; amount varies | $35,000 annual income |
| Kansas | Service-connected (any %) | Full exemption on homestead | None stated |
| Louisiana | Service-connected (any %) | Full exemption on homestead | Adjusts annually with federal poverty line |
| Mississippi | Service-connected (any %) | Full exemption on homestead | None stated |
| Missouri | Service-connected (any %) | Full exemption on homestead | None stated |
| Montana | Service-connected (any %) | Full exemption on homestead | None stated |
| New Mexico | Service-connected (any %) | Full exemption on homestead | None stated |
| North Carolina | Service-connected (any %) | Full exemption on homestead | None stated |
| Ohio | Service-connected (any %) | Full exemption on homestead | None stated |
| Oklahoma | Service-connected (any %) | Full exemption on homestead | None stated |
| Pennsylvania | Service-connected (any %) | Full exemption on homestead | None stated |
| South Carolina | Service-connected (any %) | Full exemption on homestead | None stated |
| Tennessee | Service-connected (any %) | Full exemption on homestead | None stated |
| Texas | 10% or higher | $12,000 assessed value exemption | None stated |
| Virginia | 70% or higher | 50% to 100% depending on rating | None stated |
| West Virginia | Service-connected (any %) | Full exemption on homestead | None stated |
This table shows general patterns, but rules change and vary by county within each state. Contact your county assessor to confirm current requirements and amounts before filing your claim.
What happens if your disability rating changes
If the VA increases your disability rating, you may become newly may be able to access for an exemption or move into a higher exemption tier. You will need to file an updated claim with your county assessor and provide your new VA disability rating letter. The increase typically takes effect in the next tax year.
If your rating decreases, you may lose the exemption or drop to a lower tier. The county will usually notify you if this happens, but you should report the change yourself to avoid overpaying taxes or facing a bill for back taxes. Some states allow a grace period or grandfather clause that protects your exemption for a year or two after a rating decrease, but this varies.
If your disability rating is scheduled for a review or you expect it to change, contact your county assessor to ask how the change will affect your exemption. Some counties can place your exemption on hold during a rating review to avoid complications.
Frequently Asked Questions
Do I have to be a resident of the state when I file for the exemption?
Yes, most states require you to be a resident at the time you file and to have lived there for a minimum period, usually one to three years. Some states allow you to claim the exemption on a home you own but do not yet live in, as long as you move there within a set timeframe. Check your state's rules before purchasing property out of state.
Can I claim the exemption on a rental property or vacation home?
No. Nearly all states limit the disabled veteran exemption to your primary residence only. If you own multiple properties, you can claim the exemption on the one where you live. Rental properties and vacation homes do not may have access to.
What if I move to a different state after claiming the exemption?
Your exemption ends when you move. You will need to contact your former county assessor to close out the exemption and may owe taxes for the remainder of the tax year. If you move to another state that offers a disabled veteran exemption, you can file a new claim there, but you will start fresh with that state's rules and waiting periods.
Do I lose the exemption if my income increases above the state limit?
Yes, in states with income limits. If your household income exceeds the threshold, you lose the exemption when ready in most cases. Some states allow a grace period or phase-out, but you should report income changes to your county assessor to avoid overpaying or underpaying taxes.
Can my spouse or family member claim the exemption if I pass away?
This depends on your state. Some states allow a surviving spouse to keep the exemption if they remain in the home and meet other conditions. Others end the exemption upon the veteran's death. Contact your county assessor to learn your state's rules on survivor exemptions.