Property Tax Exemptions for Disabled Veterans by State (2026)

A 100% VA disability rating comes with benefits that go beyond monthly compensation. One of the biggest is property tax exemptions. In many states, a 100% disabled veteran pays zero property tax on their primary home. That can save thousands of dollars every single year.

But the rules change from state to state. Some give a full exemption at 100%. Others start partial exemptions at 10% or 50%. A few states have income limits or age requirements. And some only offer a basic homestead exemption with a small discount.

I built this guide because I got tired of seeing veterans miss out on money they earned. After I separated from the Navy, nobody sat me down and explained which state benefits applied to me. I had to find it all myself. This article covers every state so you do not have to do the same.

If you are also figuring out your post-service finances, check out our full veteran tax benefits by state guide for income tax breaks, retirement pay exemptions, and more.

Which States Give 100% Disabled Veterans a Full Property Tax Exemption?

More than half the country offers a full property tax exemption to veterans with a 100% VA disability rating. "Full exemption" means you pay zero property tax on your primary residence. No cap. No limit. Just zero.

Here are the states that offer a full exemption for 100% disabled veterans as of 2026:

• Alabama: Full exemption on primary residence
• Arkansas: Full exemption for 100% P&T (permanent and total)
• Florida: Full exemption on homestead property
• Hawaii: Full exemption for 100% disabled veterans
• Illinois: Full exemption on primary residence (up to assessed value limits based on county)
• Iowa: Full exemption on homestead
• Maryland: Full exemption on primary residence
• Michigan: Full exemption on homestead property
• Mississippi: Full exemption on first $7,500 of assessed value (effectively covers most homes)
• Nebraska: Full exemption for 100% disabled veterans
• New Hampshire: Full exemption (varies by town, most offer total exemption)
• New Jersey: Full exemption for 100% P&T veterans
• New Mexico: Full exemption on primary residence
• Oklahoma: Full exemption on homestead
• South Carolina: Full exemption on primary residence
• Texas: Full exemption on primary residence
• Virginia: Full exemption for 100% P&T veterans

Texas and Florida get the most attention because they also have no state income tax. Combine zero income tax with zero property tax and your monthly housing cost drops to just insurance and maintenance.

For a full breakdown of which states are best for disabled veterans overall, read our best states for disabled veterans benefits in 2026 guide.

What About States With Partial Property Tax Exemptions?

Many states offer partial exemptions based on your VA disability percentage. The higher your rating, the bigger the discount. These states do not give you zero, but they take a real chunk off your tax bill.

• Arizona: Exemption on $3,000 of assessed value for veterans with a service-connected disability
• California: $100,000 to $150,000 reduction in assessed value for 100% disabled veterans (income limits apply)
• Colorado: 50% exemption on the first $200,000 of actual value for 100% disabled veterans
• Connecticut: $1,500 exemption on assessed value (additional amounts for higher disability ratings)
• Georgia: Up to $89,348 exemption on assessed value for 100% disabled veterans
• Idaho: Up to $1,500 reduction in property tax for disabled veterans (income limits apply)
• Indiana: Deductions up to $37,440 or $48,000 depending on disability rating
• Kansas: Refund of property taxes for 100% disabled veterans (income-based)
• Kentucky: Exemption on first $46,350 of assessed value for totally disabled veterans
• Louisiana: $7,500 homestead exemption (same as all residents, with additional benefits for special adapted housing)
• Maine: $6,000 exemption for veterans with service-connected disability
• Massachusetts: $400 to $1,500 annual exemption depending on disability percentage
• Minnesota: Up to $300,000 market value exclusion for 100% disabled veterans
• Montana: Reduced property tax for 100% disabled veterans (income and property value limits)
• Nevada: Exemption between $6,250 and $20,000 of assessed value based on wartime service and disability
• New York: Multiple exemptions available (Alternative Veterans, Cold War, combat zone). Exemptions range from 15% to 50% of assessed value
• North Carolina: First $45,000 of appraised value exempt for 100% P&T veterans
• North Dakota: Credit applied to property taxes for disabled veterans. Maximum varies by assessed value
• Ohio: Up to $50,000 in assessed value exemption for 100% disabled veterans
• Oregon: Up to $28,045 exemption on assessed value for 40%+ disabled veterans
• Pennsylvania: Full property tax exemption available for 100% disabled veterans (county-level, must apply through county)
• Rhode Island: Exemptions vary by city/town. Some municipalities offer additional veteran exemptions
• South Dakota: Tax exemption on first $150,000 of full and true value for disabled veterans (income limits)
• Tennessee: Tax relief up to $175,000 of property value for 100% disabled veterans
• Utah: Exemption up to $283,070 of taxable value for 100% disabled veterans
• Vermont: $10,000 to $40,000 exemption depending on disability rating and municipality
• Washington: Income-based exemption program for disabled veterans. Can exempt assessed value from $60,000 to full value based on income
• West Virginia: Full exemption on first $20,000 of assessed value for totally disabled veterans
• Wisconsin: Full property tax credit for 100% service-connected disabled veterans
• Wyoming: Exemption up to $3,000 of assessed value for veterans with disabilities

Notice the range. Some states exempt $3,000 in assessed value. Others exempt $300,000. Where you live makes a massive difference in how much you save.

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How Do You Apply for a Disabled Veteran Property Tax Exemption?

The application process is similar in most states. You file with your county tax assessor or county auditor. Some states call it the "county treasurer" or "department of revenue." The office name changes but the process is the same.

The whole process usually takes 2 to 6 weeks. Once approved, the exemption renews automatically each year in most states. You only need to reapply if you move, your rating changes, or your state changes its rules.

One thing that catches people off guard: you must own and live in the home. Rental properties and second homes almost never qualify. The exemption is for your primary residence only.

Do Surviving Spouses Keep the Property Tax Exemption?

Yes, in most states. This is one of the most important details people miss. If a 100% disabled veteran passes away, the surviving spouse usually keeps the full property tax exemption. But the rules vary.

Here is how it works in most states:

• Automatic transfer: Texas, Florida, Virginia, and many others automatically continue the exemption for surviving spouses as long as they do not remarry and stay in the home
• Application required: Some states require the surviving spouse to file a separate application after the veteran passes
• Remarriage ends it: In most states, the exemption ends if the surviving spouse remarries. A few states allow it to continue regardless
• Must stay in the home: The surviving spouse typically must continue living in the same home. Moving to a new property may require a new application

This matters for financial planning. If you are a 100% disabled veteran and your spouse depends on that tax break, make sure they know the process. Put the paperwork where they can find it. Talk to your county assessor about what happens if something changes.

How Does Your VA Disability Rating Affect Your Exemption?

Your VA disability percentage directly controls what you qualify for. Each state sets its own thresholds. Here is a general breakdown of how ratings map to exemptions across most states:

• 100% P&T (Permanent and Total): Full exemption in 17+ states. Partial exemption in nearly every other state. This is the gold standard for property tax savings
• 100% (not P&T): Many states still offer the full exemption. Some states specifically require the P&T designation. Check your state rules carefully
• 70% to 90%: Partial exemptions available in many states. Oregon starts at 40%. Indiana and New York offer scaled benefits at these ratings
• 50% to 60%: Fewer states offer exemptions at this level, but Arizona, Connecticut, Maine, and Oregon do
• 10% to 40%: Very few states offer property tax breaks at these ratings. Most require at least 50% or 100%. Some states like Oregon (40%) and Nevada (wartime service + disability) are exceptions

The distinction between "100%" and "100% P&T" matters. P&T means the VA considers your disability permanent. You will not be scheduled for future re-evaluations. Some states only give the full exemption to P&T veterans because the rating will not change. If you are at 100% but not P&T, check whether your state requires it.

If you want to understand how your VA rating affects your career and job options, read our guide on working with a 100% VA disability rating.

What About States With No Special Veteran Property Tax Exemption?

Not every state has a specific program for disabled veterans. A few states offer the same homestead exemptions to all residents with no extra benefit for veterans. Delaware and the District of Columbia are examples of this.

That does not mean you get nothing. Standard homestead exemptions still apply. And some states without a formal veteran program have county-level or municipal programs that offer additional discounts.

If you live in a state with weak property tax benefits, that does not mean you should move. But it is worth knowing what you are leaving on the table. Our best states for military retirees in 2026 guide compares the full picture: income tax, property tax, sales tax, and state-level veteran programs.

How Property Tax Exemptions Fit Into Your Total Financial Picture

Property tax is just one piece. Smart financial planning means stacking all your benefits together. Here is what a 100% disabled veteran in a strong state might save each year:

• Property tax exemption: $5,000 to $12,000 per year (depending on home value and location)
• State income tax exemption on military retirement: $2,000 to $8,000 per year (see our states that do not tax military retirement guide)
• VA disability compensation (tax-free): $3,737.85 per month for 100% with no dependents (2026 rate)
• Federal employment income: A GS-13 position pays $88,520 to $115,079 depending on locality. A GS-14 position goes even higher

Add it up. A 100% P&T veteran in Texas earning a GS-13 salary with a $350,000 home could keep an extra $15,000 to $20,000 per year compared to a non-veteran in the same house with the same job.

If you are exploring federal careers, read our guide on military retirement pay plus civilian salary tax tips to understand how the numbers work together.

Common Mistakes Veterans Make With Property Tax Exemptions

After helping 23,208 veterans through BMR, I hear the same stories. Veterans leave money on the table because of a few common mistakes. Here are the ones I see most often:

1. Never applying in the first place. This is the biggest one. Many veterans assume the exemption is automatic. It is not. You have to file an application with your county. Nobody does it for you.

2. Waiting too long to apply. Most states have deadlines early in the year. If you buy a home in June, you might need to wait until January to apply for the next tax year. Know the deadline before you close on a house.

3. Not knowing about the P&T requirement. Some veterans have a 100% rating but it is not marked "permanent and total." A few states require P&T specifically. If you are at 100% but not P&T, talk to your VA representative about requesting a P&T determination.

4. Forgetting to reapply after moving. Your exemption does not follow you from one property to another. When you sell your home and buy a new one, you need to file a new application in the new county. Veterans move often and this step gets missed.

5. Not telling your spouse about the process. If something happens to you, your surviving spouse needs to know where the paperwork is and what to file. Many surviving spouses lose the exemption for a year or more because they did not know they had to submit a separate application.

What to Do Next

If you have a VA disability rating and own a home, check your state on this list. Then call your county assessor and ask about the application. It takes 30 minutes of paperwork and could save you thousands every year.

For veterans planning a move, use this guide alongside our best states for disabled veterans benefits breakdown to find the state that gives you the most value.

If you are also building your post-service career, BMR can help. Our federal resume builder helps veterans with VA disability ratings apply for federal positions where disabled veteran hiring authorities give you a real advantage. Stack the financial benefits with a career that pays well and your transition gets a lot easier.