Javascript is not enabled.

Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.

Skip to content
Content starts here
CLOSE ×

Search

Leaving AARP.org Website

You are now leaving AARP.org and going to a website that is not operated by AARP. A different privacy policy and terms of service will apply.

Guide to Property Tax Breaks for Veterans With Disabilities

Many states fully exempt former service members with a permanent and total disability


spinner image A residential street of brick homes with an American Flag hanging from the front of one home
Getty Images

In Northern Virginia, where retired Air Force pilot Curt Sheldon works as a certified financial planner, housing is expensive and property tax bills can sting.

“Property taxes of $5,000 per year and greater are common, and it’s not unheard of to exceed $10,000 per year in property taxes,” says Sheldon, whose firm, C.L. Sheldon & Company, primarily serves active-duty and former service members.

spinner image Image Alt Attribute

AARP Membership— $12 for your first year when you sign up for Automatic Renewal

Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine.

Join Now

But in Virginia, veterans who have a disability rated by the Department of Veterans Affairs (VA) as 100 percent permanent and total (P&T) are exempt from property taxes on their primary residence. A 2021 state law also exempts them from personal property taxes on one vehicle.

The savings “can be significant,” Sheldon says. “Around 30 to 40 percent of my clients have a 100 percent permanent and total disability rating.”

Most states give former service members with disabilities a break on their property taxes, but the scale and scope of exemptions vary widely. For example:

  • Many states limit the exemption to veterans with a 100 percent VA disability rating, but some go as low as 10 percent. (The ratings determine VA compensation levels.)
  • The VA has different kinds of 100 percent disability (see sidebar, “Disability rating types”), and some states limit which kinds qualify for a tax break.
  • A few states reduce property taxes for all veterans, regardless of medical condition, or base benefits on other criteria, such as age or income.

There may be other eligibility criteria, such as whether a veteran was honorably discharged or served during wartime. The details can even vary from county to county. Contact your state’s tax office or veterans affairs office for more information, or to get help applying or documenting your eligibility.

​Disability rating types

The VA rates disability on a scale of 0 to 100 percent, in 10 percent increments, based on the severity of a service-connected condition (meaning an illness or injury incurred during or worsened by active service). A veteran who is rated 100 percent disabled is generally entitled to receive the VA’s maximum monthly disability compensation rate. But there are different kinds of 100 percent disability, and not all states recognize all types for property tax purposes.

  • Permanent and total (P&T) disability means a veteran has a service-connected condition the VA has determined will not improve. 
  • Temporary 100 percent disability is a condition that is fully disabling but not permanent, and the VA anticipates the veteran’s health will improve over time
  • Individual unemployability is a VA designation for veterans deemed unable to work due to a service-related disability. They can receive the maximum compensation rate even if their disability rating is less than 100 percent.

Alabama

Veterans who have a 100 percent disability rating or receive the maximum VA compensation rate due to unemployability are exempt from property taxes. Also, a home that a veteran acquired with a specially adapted housing grant is exempt from property taxes as long as it is owned and occupied by the veteran or a surviving spouse who has not remarried.

More information: Alabama Department of Revenue

Alaska

Veterans with a disability rating of 50 percent or higher are exempt from property taxes on the first $150,000 of assessed valuation (the exemption amount is higher in some boroughs).

More information: Alaska Department of Military and Veterans Affairs

Arizona

Veterans with disabilities can qualify for an exemption on their 2023 property taxes if the assessed value of their home is less than $29,418 and their income is below $36,077. The amount of the tax break is tied to disability rating.

More information: Arizona Department of Revenue

Arkansas

Veterans with a P&T disability can receive a full property tax exemption on their personal property, their home and up to 40 acres adjacent to the home (provided the land is not used for commercial purposes). So can veterans who have been awarded special monthly compensation from the VA for the loss or lost use of one or more limbs or total blindness in one or both eyes.

More information: Arkansas Commissioner of State Lands

California

Veterans who have a 100 percent disability rating or who receive the 100 percent compensation rate due to unemployability can exempt up to $161,083 from the assessed value of their primary residence in 2023. Qualified veterans with disabilities with income below $72,335 in 2023 can exempt up to $241,627 from their home’s assessed value.

More information: California State Board of Equalization

Colorado

Veterans with a 100 percent P&T rating can exempt up to $100,000 of the value of their primary residence from property taxes. Surviving spouses of service members who died in the line of duty or whose death resulted from a service-related injury or disease are also eligible.

More information: Colorado Department of Military and Veterans Affairs

Connecticut

All eligible veterans who served during a designated period of war qualify for a standard exemption that reduces the assessment of their home by $1,000 to $8,000, depending on the county, plus an additional exemption based on income. Veterans with a disability receive an extra property tax break determined by their disability rating and county of residence.

More information: Connecticut Office of Policy and Management

Delaware

Veterans who have lived in the state for at least three years and have a 100 percent P&T disability rating or an unemployability designation are eligible for a partial property tax credit on their primary residence. New Castle County fully exempts such veterans from property taxes.

More information: Delaware Department of Finance

District of Columbia

Veterans who have a permanent and total disability or are designated unemployable are eligible for a $445,000 reduction in the assessed value of their principal residence if their household income is less than $139,900.

More information: D.C. Mayor’s Office of Community Affairs

Florida

Florida offers four kinds of service-related property tax breaks.

  • Veterans who have a 100 percent P&T rating or are confined to a wheelchair can qualify for a full exemption from property taxes.
  • Veterans with a lower disability rating can get a reduction of up to $5,000 on their property’s assessed value.
  • Veterans with a lower disability rating who are 65 or older may qualify for an additional reduction in the assessed value of their primary residence, with the amount based on their percentage of disability. 
  • Service members and veterans who were deployed outside of the U.S. for a designated operation during the previous calendar year can get an exemption proportionate to the amount of time they were deployed on a designated operation.

More information: Florida Department of Revenue

Georgia

For the 2023 tax year, veterans with a 100 percent disability rating or unemployable status can exempt up to $109,986 from their property’s value. The same break is available to veterans who receive payment from the VA for loss (or loss of use) of one or both feet or hands or loss of sight in both eyes.

More information: Georgia Department of Veterans Service

Hawaii

In three of Hawaii’s four counties, veterans with a 100 percent disability are fully exempt from property taxes except for a $150 minimum tax. In Maui County, this exemption is available to veterans with a disability rating of 70 percent or higher.

More information: Hawaii Office of Veterans’ Services

Idaho

Veterans with a 100 percent disability rating or an unemployability designation can get a property tax reduction of up to $1,500, regardless of income. Veterans with a lower disability rating may qualify for a 2024 property tax reduction of $250 to $1,500 if their 2023 income is $37,000 or less.

Veterans with a lower disability rating or who receive a VA pension for a non-service-connected disability can apply for a property tax deferral if their 2023 income is $58,304 or less.

More information: Idaho State Tax Commission

Illinois

Veterans with disabilities who own homes assessed at less than $250,000 for tax purposes get full or partial property tax exemptions, depending on their disability rating.

  • 30 percent or 40 percent: $2,500 reduction in taxable assessed value
  • 50 percent or 60 percent: $5,000 reduction in taxable assessed value
  • 70 percent or more: full property tax exemption

Also, veterans who used a federal specially adapted housing grant can qualify for up to a $100,000 reduction on the home’s assessed value.

More information: Illinois Revenue

Indiana

Veterans with property assessed at $200,000 or less can deduct $14,000 from their home’s assessed value if they have a permanent and total disability or are 62 or older and have a disability rating of at least 10 percent. Wartime veterans may qualify to deduct $24,960 from their property’s assessed value.

More information: Indiana Department of Veterans Affairs

Iowa

Veterans who have a 100 percent P&T rating or are paid at the maximum rate because of unemployability receive a tax credit equal to their total property tax bill.

A separate exemption gives eligible veterans a break of up to $4,000 on their property’s assessed value. The exemption is available to veterans who served for at least 18 months and were discharged under honorable conditions or served for fewer than 18 months because of a service-related injury, and to certain members of the Reserves or Iowa National Guard.

More information: Iowa Department of Revenue

Shopping & Groceries

Coupons for Local Stores

Save on clothing, gifts, beauty and other everyday shopping needs

See more Shopping & Groceries offers >

Kansas

Veterans with a disability rating of 50 percent or more, 2023 income of $53,600 or less, and a home valued at less than $350,000 can receive a refund of the property taxes they paid in the previous year.

More information: Kansas Department of Revenue

Kentucky

Veterans with a 100 percent P&T rating or an unemployability designation may exempt up to $46,350 in their home’s assessed value for the 2023 and 2024 tax years.

More information: Kentucky Department of Revenue

Louisiana

Veterans with a 100 percent disability rating are fully exempt from property taxes. Veterans with a disability rating of 50 percent or more can take a partial exemption.

More information: Louisiana Department of Veterans Affairs

Maine

Veterans with a permanent and total VA disability rating can take $6,000 off the taxable value of their property. This break is also available to veterans who are 62 or older, or who receive another kind of government benefit for a total disability, if they served during a period of war.

There’s an additional break for some P&T-rated veterans: If they qualify for the income-based Maine Property Tax Fairness Credit, they can get up to double that credit.

More information: Maine Revenue Services

Maryland

Veterans with a 100 percent P&T rating are exempt from property taxes on their home.

More information: Maryland Department of Veterans Affairs

Massachusetts

Most veterans with a disability rating of 10 percent or more can qualify for a property tax exemption of $400 to $1,500, depending on their rating and other factors such as having received a particular medal or lost (or lost use of) an eye, hand or foot in the line of duty. Veterans who are paraplegics or who have a 100 percent disability rating for service-connected blindness can receive a full exemption.

More information: Massachusetts Department of Revenue

Michigan

Veterans who have a 100 percent P&T rating or are deemed unemployable are exempt from property taxes on their primary residence.

More information: Michigan State Tax Commission

Minnesota

Veterans with a 100 percent permanent and total disability can reduce the value of their home for property tax purposes by up to $300,000. Veterans with a disability rating of 70 percent or higher can exclude up to $150,000.

More information: Minnesota Department of Revenue

Mississippi

Veterans with a 100 percent P&T disability are exempt from property taxes on their primary residence.

More information: Mississippi VA

Missouri

Veterans with a 100 percent disability rating who were also prisoners of war are exempt from property taxes on their primary residence. Other veterans with a 100 percent service-connected disability may qualify for a property tax credit of up to $1,100 if their income is below $30,000 for single filers or $34,000 for joint filers. Veterans’ benefits are not included in the income calculation.

More information: Missouri Department of Revenue

Montana

Veterans with a 100 percent service-related disability rating can qualify for a reduction of 50 to 100 percent of the normal property tax rate based on income.

More information: Montana Disabled Veterans Assistance Program

Nebraska

Veterans with a 100 percent service-connected permanent disability may apply for an exemption from property taxes on their primary residence and up to one acre of land surrounding it. Veterans who are totally disabled due to an illness or accident unrelated to their service may be eligible for an exemption based on their income level and home value.

Beginning in 2024, veterans with 100 percent service-connected temporary disability may also apply for a full exemption.

More information: Nebraska Department of Revenue

Nevada

Veterans with a disability rating of at least 60 percent can qualify for a property tax exclusion, with the amount tied to disability level. The maximum exclusion is $34,400 for a veteran with a 100 percent disability rating. Veterans who served during certain dates, generally wartime, may be eligible for an exemption of up to $3,440 of assessed value in 2024, regardless of disability status.

More information: Nevada Department of Veterans Services

New Hampshire

Veterans with a permanent and total disability can get a property tax credit of $700 to $4,000, depending on their county of residence. Veterans without disabilities may be eligible for a credit of up to $750, also depending on county.

More information: New Hampshire Department of Revenue Administration

New Jersey

Veterans with a 100 percent P&T rating are exempt from property taxes on their primary residence. All honorably discharged veterans with active-duty service can deduct $250 from their property taxes each year, regardless of disability status.

More information: New Jersey Division of Taxation

New Mexico

Veterans with a 100 percent permanent and total disability are exempt from property taxes on their primary residence. Honorably discharged veterans may qualify to reduce the taxable value of their property by up to $4,000, regardless of disability status.

More information: New Mexico Department of Veterans Services

New York

In most counties, veterans who served during a period of war may be eligible for a 15 percent reduction in their property’s assessed value, 25 percent if they served in a combat zone.

Veterans who served in wartime and have service-connected disabilities can also reduce their property’s assessed value by half their disability rating (for example, by 50 percent if they have a 100 percent rating), in addition to the 15 percent or 25 percent deduction noted above. Specific requirements and maximum exemptions vary by county.

More information: New York State Department of Taxation and Finance

spinner image membership-card-w-shadow-192x134

LEARN MORE ABOUT AARP MEMBERSHIP.

Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine.

North Carolina

Veterans rated 100 percent P&T or unemployable can qualify to reduce the value of their assessed property by up to $45,000.

More information: North Carolina Department of Military and Veterans Affairs

North Dakota

Eligible veterans with a disability rating of 50 percent or higher can reduce the taxable value of their primary residence by $4,050 to $8,100, depending on their rating.

More information: North Dakota Office of State Tax Commissioner

Ohio

Veterans with a permanent and total disability or unemployability designation can reduce the value of their primary residence by up to $50,000.

More information: Ohio Department of Veterans Services

Oklahoma

Veterans with a 100 percent P&T rating or unemployability designation are exempt from property taxes on their primary residence. The surviving spouse of a veteran killed while on active duty is also exempt.

More information: Oklahoma disabled veterans property tax exemption application

Oregon

Veterans with a disability rating of 40 percent or more may qualify to exempt up to $29,753 from the assessed value of their primary residence from property taxes, with the exemption amount based on their disability rating.

More information: Oregon Department of Revenue

Pennsylvania

Veterans who have a 100 percent P&T rating or are deemed unemployable may be exempt from property taxes on their primary residence if their gross annual income is less than $108,046. Applicants earning more than that may qualify if certain monthly expenses are more than their monthly household income. Other eligibility criteria include a discharge under honorable conditions and serving during a period of war or armed conflict.

More information: Pennsylvania Department of Military and Veterans Affairs

Rhode Island

Property tax exemptions for veterans vary by jurisdiction. Many cities and towns offer a tax credit or partial exemption for all veterans and a larger credit or exemption for veterans with a permanent and total disability. Some offer a smaller credit or exemption for veterans with a partial disability. Contact your city or town tax assessor for details.

More information: Rhode Island Office of Veterans Services

South Carolina

Veterans with a 100 percent permanent and total disability are exempt from property taxes on their primary residence and up to five acres on which it sits. They are also exempt from personal property taxes on up to two vehicles.

More information: South Carolina Department of Revenue

South Dakota

Paraplegic veterans can qualify for a full exemption from property taxes. Veterans with a 100 percent P&T rating can exempt up to $150,000 of the value of their primary residence from property taxes.

More information: South Dakota Department of Revenue

Tennessee

Veterans are exempt from property taxes on up to $175,000 of market value on their primary residence if they have a permanent and total disability rating or service-connected paraplegia, legal blindness or loss of the use of two or more limbs.

More information: Tennessee Comptroller of the Treasury

Texas

Veterans who have a 100 percent disability rating or are deemed unemployable may qualify for a full property tax exemption on their primary residence. Veterans with a lower disability rating can exempt $5,000 to $12,000 of the appraised value on their home, depending on the rating.

More information: Texas Comptroller of Public Accounts

Utah

Veterans with a disability rating of 10 percent or more can reduce the taxable market value of their primary residence by up to $479,504 in 2023, with the amount based on the percentage of disability.

More information: Utah State Tax Commission

Vermont

Veterans with a disability rating of 50 percent or higher can subtract $10,000 to $40,000 from their assessed property value, depending on their city or town.

More information: Vermont Office of Veterans Affairs

Virginia

Veterans with a 100 percent permanent and total disability rating are exempt from property taxes on their primary residence and from personal property taxes on one vehicle.

More information: Virginia Department of Veterans Services

Washington

Veterans with at least an 80 percent disability rating may qualify for a partial exemption on the value of their primary residence, based on their county and their income.

More information: Washington State Department of Veterans Affairs

West Virginia

There is no property tax break specifically for veterans, but West Virginia exempts up to $20,000 of assessed value for homeowners who are 65 or older or have a permanent and total disability (as certified by the VA, the Social Security Administration, a doctor, a workers’ compensation ruling or another approved authority) and meet income requirements.

Starting in 2024, veterans with a disability rating of at least 90 percent can take a credit on their income taxes that matches what they paid in property taxes.

More information: West Virginia Department of Veterans Assistance

Wisconsin

Veterans with a 100 percent P&T rating or unemployability status may be eligible for an income tax credit equal to the amount of property taxes they paid on their primary residence. The eligible veteran must have been a Wisconsin resident when they entered active duty or for a consecutive five-year period since entering active duty.

More information: Wisconsin Department of Revenue

Picking a state? Get the full tax picture

When deciding where to live after serving, remember that any tax breaks for veterans are just one piece of the overall tax picture. A state with low property taxes may have high income or sales tax rates. A state with high property taxes may have generous deductions for military retirement pay or other retirement income. Most states don’t tax Social Security benefits, but some do. 

“When you’re thinking about tax burdens, you should never think about individual tax in isolation,” says Adam Langley, associate director of tax policy for the Lincoln Institute of Land Policy. “States need to bring in enough revenue to pay for services. Consider the full package of taxes and the quality of the services.”

Check with your state’s veterans services office or department of revenue for specific tax information. The Military Officers Association of America’s online state tax guides are another good source of information.

Wyoming

Veterans who served during certain periods, earned qualifying medals or have a service-connected disability may exempt up to $3,000 in assessed value on their primary residence from property taxes. The qualifying veteran must have been a Wyoming resident for the previous three years.

More information: Wyoming Department of Revenue

Discover AARP Members Only Access

Join AARP to Continue

Already a Member?