Guide to Property Tax Breaks for Veterans With Disabilities

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

Kimberly Lankford & Aaron Kassraie,

Updated January 21, 2026

AARP

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Published November 07, 2023

/ Updated January 21, 2026

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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.

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. And don't forget, there are also federal tax breaks for which veterans may qualify.

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.
Total Disability based on Individual Unemployability (TDIU) 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.

For specifics or help applying, contact your local tax office or VA. And don’t forget: There are also federal tax breaks veterans may also qualify for.

Alabama

Veterans who have a 100 percent disability rating or receive the maximum VA compensation rate due to unemployability are exempt from ad valorem 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, Alabama Laws Affecting Veterans Booklet

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). Surviving spouses may also qualify for this exemption.

More information: Alaska Department of Military and Veterans Affairs

Arizona

Veterans with disabilities can qualify for an exemption on their 2025 property taxes if they meet certain income limitations. The amount of the tax break is tied to their disability rating. Veterans or surviving spouses can apply through their county assessor’s office to receive significant tax relief on their homes.

More information: Arizona Department of Revenue

Arkansas

Veterans who have lost the use of a limb, are blind in one or both eyes or have a 100% service-connected disability rating can receive a full property tax exemption on their personal property and their home

More information: Arkansas Commissioner of State Lands

California

Veterans with a 100% disability rating or receiving 100% compensation due to unemployability can exempt up to $175,298 from their primary home’s assessed value in 2025. Those with disabilities and incomes below $78,718 can be exempt up to $262,950.

More information: California State Board of Equalization, California Exemption Increases for 2025

Colorado

Veterans with a 100 percent P&T rating or an individual unemployability status can receive a 50% exemption on the first $200,000 of their home’s value. Applications must be submitted to the Colorado Department of Military and Veterans Affairs by July 1.

More information: Colorado Department of Military and Veterans Affairs

Connecticut

Connecticut property tax is managed by local municipalities, which can interpret and apply exemptions according to state law. Veterans should contact their local municipality for details on eligibility and exemption amounts toward real estate or auto taxes. Exemptions vary based on service era, disability ratings and household status.

Meanwhile, a state law provides a full property tax exemption for veterans with a total and permanent service-connected disability rating from the VA, effective Oct. 1, 2024. Veterans who do not own a home will receive a complete property tax exemption on one motor vehicle.

More information: Connecticut Department of Veterans Affairs, Questions on the New Property Tax Exemption for Veterans with a P&T Disability Rating

Delaware

Veterans who have lived in the state for at least 3 years and have a 100% P&T disability rating or an unemployability designation are eligible for a full tax credit on the school district portion of property taxes for their primary residence.

More information: Delaware Department of Finance

District of Columbia

Veterans who have a P&T 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 $159,750 in 2025. The benefit may also extend to certain surviving spouses.

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.
Honorably discharged veterans with a minimum disability rating of 10 percent may be eligible for a $5,000 reduction in the assessed value of their property.
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

Veterans with a 100 percent disability rating or unemployable status can exempt up to $121,812 from their property’s value. The same break is available to unmarried surviving spouses, and 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

Disabled veterans and, often, their surviving spouses can get property‑tax exemptions on their homes, with rules and amounts set by each county. Some counties also offer vehicle‑tax breaks for VA‑subsidized cars. Check with your island’s real property tax office for the details.

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.

More information: Idaho State Tax Commission, Veteran's Property Tax Reduction Program

Illinois

Veterans with service-connected disabilities may qualify for property tax relief based on their disability rating. The exemption applies as an annual reduction in the equalized assessed value of their primary residence:

30 percent or 49 percent: $2,500 reduction in taxable assessed value
50 percent or 69 percent: $5,000 reduction in taxable assessed value
70 percent or more: The first $250,000 of the taxable assessed value

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 Department of 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

Under Iowa’s the Disabled Veteran Homestead Tax Credit, 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 benefit, the Military Service Property Tax Exemption, gives veterans a tax break based off their dates of service. 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

Kansas

Veterans with a disability rating of 50 percent or more, a 2025 income of $43,389 or less, and a home valued at less than $350,000 can receive a rebate based on a portion 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 $49,100 in their home’s assessed value for the 2025 and 2026 tax years. The exemption is adjusted every two years.

More information: Kentucky Department of Revenue

Louisiana

Veterans with a service-connected disability rating of 50% or higher may qualify for an additional property tax exemption on their primary residence, on top of the standard homestead exemption:

50%–69% disability: An additional $2,500 is exempt from the home’s assessed value.
70%–99% disability: An additional $4,500 is exempt from the home’s assessed value.
100% disability: The property is fully exempt from ad valorem property taxes, except for certain municipal assessments.

Contact your parish's veterans service office to schedule an appointment with a veteran’s assistance counselor.

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, Property Tax and the Maine Bureau of Veterans' Services

Maryland

Veterans with a 100 percent P&T rating are exempt from property taxes on their home. Unmarried surviving spouses may also qualify. Some counties offer additional exemptions.

More information: Maryland Department of Veterans Affairs

Massachusetts

Most veterans with a service-connected disability rating of 10 percent or higher may qualify for a property tax exemption ranging from $400 to $1,500, depending on their disability rating and other factors, such as the receipt of certain military medals or the loss (or loss of use) of an eye, hand, or foot in the line of duty. Veterans who are paraplegic or who have a 100 percent service-connected disability due to blindness may qualify for a full property tax exemption, as may certain surviving spouses and parents.

The HERO Act allows cities and towns to increase veteran exemption amounts or adjust them annually for inflation. These changes apply only in municipalities that voted to adopt the provisions.

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. Surviving spouses of eligible veterans can also apply.

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. Certain surviving spouses and caregivers may also be eligible for a full exemption.

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

Missouri offers a property tax credit for disabled veterans. Veterans who are 100% disabled due to military service may qualify for a credit of up to $1,100 if they own their home or $750 if they rent. Separately, former prisoners of war with a total service-connected disability are fully exempt from property taxes on their primary residence.. Contact the appropriate county assessor’s office.

More information: Missouri Department of Revenue, Missouri Military Reference Guide

Montana

Montana’s Disabled Veterans (MDV) Assistance Program helps veterans with a 100% service-connected disability and their unmarried surviving spouses reduce the property tax rate on their primary residence. The amount of the reduction—50% to 100%—depends on income and marital status, with higher reductions for lower incomes. To qualify, veterans or surviving spouses must live in the home, provide VA documentation of the disability and meet income limits. The benefit applies to homes on agricultural or forest land, covering the home and a one-acre homesite.

More information: Montana Disabled Veterans Assistance Program

Nebraska

Veterans with a 100 percent service-connected permanent or temporary 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.

More information: Nebraska Department of Revenue, Nebraska Homestead Exemption Guide 2025

Nevada

Nevada offers property tax relief for veterans and their surviving spouses. Wartime veterans who served at least 90 continuous days during a time of war or national emergency may qualify for an exemption—up to $35,400 of assessed value in 2025 in some counties, regardless of disability. Disabled veterans with a service-connected disability rating of 60% or higher may also qualify, with the exemption amount determined by their rating. For example, in Clark County, a veteran with a 100% disability rating can receive a maximum exclusion of $35,400. Exemptions apply to property taxes or certain government services and vehicle registration fees.

More information: Nevada Department of Veterans Services

New Hampshire

Veterans with a total and permanent service-connected disability in New Hampshire may qualify for property tax relief, including a tax credit of up to $5,000 for 100% disabled veterans. Veterans who live in specially adapted homes may be eligible for a full property tax exemption.

More information: New Hampshire Department of Revenue Administration

New Jersey

Veterans with a 100 percent P&T rating may be eligible for an annual property tax exemption, in an amount determined by the municipal tax assessor based on the property’s value. Honorably discharged veterans may be eligible for an annual $250 property tax deduction.

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 $10,000, regardless of disability status. Surviving spouses of veterans who were receiving this exemption may also continue to benefit under certain conditions. To apply for these exemptions, veterans must submit their applications to the county assessor’s office in their area.

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, or 10 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.

Eligible veterans must submit their initial exemption application form to their county assessor.

More information: New York State Department of Taxation and Finance

North Carolina

Veterans rated 100 percent P&T, unemployable, or living in a specially adapted home can qualify to reduce the value of their assessed property by up to $45,000. Unmarried surviving spouses of qualifying veterans are also eligible.

More information: North Carolina Department of Military and Veterans Affairs

North Dakota

In North Dakota, disabled veterans can get a property tax credit for their home based on their disability rating. The credit applies to the first $9,000 of the home’s taxable value. Veterans with a service-connected disability of 50% or higher (or with unemployability ratings) qualify for a percentage of this credit. Surviving spouses receiving Dependency and Indemnity Compensation (DIC) are eligible for a 100% credit. The exact amount may vary based on the veteran’s disability rating and whether the property is co-owned.

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 $58,000. Surviving spouses of disabled veterans who received this exemption are also eligible. The exemption applies without an income threshold, making it accessible to more veterans.

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 $35,512 from the assessed value of their primary residence from property taxes. The exemption amount depends on the veterans disability rating and whether their disability is service-connected.

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 $114,637. Applicants earning more than that may qualify if certain monthly expenses are more than their monthly household income. Other eligibility criteria include an honorable discharge and serving during a period of war or armed conflict.

Contact your County Director of Veterans Affairs to apply for this program.

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 $200,000 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 disability 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 $521,620 in 2025, with the amount based on the percentage of disability.

More information: Utah Military and Veteran Benefits

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 and their surviving spouse 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. Widows of fully disabled veterans may also qualify for grant assistance. Contact your county assessor for more information

More information: Washington State Department of Veterans Affairs

West Virginia

Veterans who have a 90 to 100 percent disability rating may receive a credit on their 2024 income tax return. Those with a 100 percent P&T rating may be exempt from certain property taxes. Contact your county assessor's office or the local VA benefits office.

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.

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.

More information: Wisconsin Department of Revenue

Wyoming

Veterans who served during certain periods, earned qualifying medals or have a service-connected disability may exempt up to $6,000 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

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Kimberly Lankford is a contributing writer who covers Medicare and personal finance. She wrote about insurance, Medicare, retirement and taxes for more than 20 years at Kiplinger’s Personal Finance and has written for The Washington Post and Boston Globe. She received the personal finance Best in Business award from the Society of American Business Editors and Writers and the New York State Society of CPAs’ excellence in financial journalism award for her guide to Medicare.

Aaron Kassraie writes about issues important to military veterans and their families for AARP. He also serves as a general assignment reporter. Kassraie previously covered U.S. foreign policy as a correspondent for the Kuwait News Agency’s Washington bureau and worked in news gathering for USA Today and Al Jazeera English.