Do all 50 states offer property tax relief for disabled veterans?

Yes. Every state has some form of property tax exemption or reduction for service-connected disabled veterans. The structure varies widely: seventeen states grant a full exemption to 100 percent rated veterans, others grant tiered valuation reductions tied to the rating, some grant a fixed-dollar exemption applied to assessed value, and a few impose income limits on top of the rating-based eligibility.

Does the exemption apply to a vacation home or rental property?

Generally no. Almost every state restricts the disabled veteran exemption to the veteran's primary residence (sometimes called homestead, principal residence, or domicile). Investment property, second homes, and properties owned through an LLC typically do not qualify. A small number of states extend partial benefits to a second residence if the veteran physically occupies it for part of the year.

What happens to the exemption when the veteran dies?

Many states extend the exemption to a surviving spouse who has not remarried and continues to occupy the home. Texas, Florida, South Carolina, Virginia, and several others have explicit surviving-spouse continuation provisions. Some states pull the exemption immediately on the veteran's death; others continue it indefinitely until the surviving spouse moves, remarries, or sells the home. Confirm the surviving-spouse rule with the state department of veterans affairs before relying on continuation.

Do I need to reapply for the exemption every year?

It depends on the state and county. Many states require a one-time application; the exemption then renews automatically as long as the veteran continues to occupy the home and the underlying disability rating does not change. A minority of states require annual renewal, especially in states with income-tested rules. Always confirm renewal requirements with your county property assessor.

Is the exemption available for veterans rated below 100 percent?

Yes in most states. Many states tier the exemption: for example, 10-29 percent rated veterans receive a small exemption amount, 30-49 percent a larger amount, 50-69 percent larger still, 70-99 percent close to the full exemption, and 100 percent the maximum. Other states require a minimum rating (often 50 percent) to qualify for any exemption. The state-by-state table in this guide flags both thresholds and amounts.

Apply through your county property assessor or county tax collector's office. The typical packet includes a state-specific exemption application form, a copy of the veteran's current VA disability rating decision letter (showing the percentage and effective date), and proof of primary residence such as a driver license or utility bill. Submit by the state's annual filing deadline, which is usually before the start of the property tax year.

Does the exemption stack with senior or homestead exemptions?

Often yes, depending on the state. Many states explicitly allow a disabled veteran exemption to be combined with a general homestead exemption and with senior or low-income exemptions. The combined effect can reduce a property tax bill below zero in some states (with the excess simply forfeited) or to exactly zero. Other states cap the combined exemption at the assessed value of the home.

Disabled Veteran Property Tax Exemptions by State

Q: Which states give 100 percent disabled veterans a full property tax exemption?

As of 2026, the full-exemption states for veterans rated 100 percent service-connected (often required to be Permanent and Total, or P&T) include Alabama, Arkansas, Florida, Hawaii, Illinois, Iowa, Maryland, Michigan, Mississippi, New Hampshire, New Jersey, New Mexico, Oklahoma, Pennsylvania, South Carolina, Texas, and Virginia. Specific eligibility wording differs by state, especially on the P&T requirement and the residency requirement, so always confirm against the current state statute and your county assessor's guidance.

By Shirley Chia. Published 2026-06-07. Source: state statutes and county assessor publications.

TL;DR. All 50 states grant some property tax relief to service-connected disabled veterans. Seventeen states give a full exemption (zero property tax on the primary residence) to 100 percent rated veterans, often requiring Permanent and Total status. Other states grant tiered percentage reductions or fixed-dollar exemptions based on the rating, with some adding income limits or residency requirements. The exemption almost always applies only to the primary residence and is filed once with the county assessor. Many states extend the exemption to surviving spouses who do not remarry. A 100 percent rated veteran in Texas pays zero property tax on a $400,000 home (saving roughly $6,800 per year); the same veteran in California saves around $1,200 per year under the partial exemption.

The three exemption structures

Structure 1: full exemption for 100 percent rated veterans

The most generous structure. The veteran pays zero property tax on the primary residence as long as the underlying rating remains and the veteran continues to live in the home. Seventeen states use this structure for the top rating tier, with details varying on whether the rating must be Permanent and Total (P&T) or whether a 100 percent rating from any source (schedular or TDIU) qualifies.

Full-exemption states as of 2026: Alabama, Arkansas, Florida, Hawaii, Illinois, Iowa, Maryland, Michigan, Mississippi, New Hampshire, New Jersey, New Mexico, Oklahoma, Pennsylvania, South Carolina, Texas, and Virginia.

Structure 2: rating-tiered valuation reduction

The veteran's rating determines a dollar amount or a percentage that is subtracted from the assessed value before tax is computed. Texas (for veterans below 100 percent), Colorado, Oregon, and many others operate this way. Typical tiers look like:

10 to 29 percent rating: smaller exemption (e.g., $5,000 of assessed value or 10 percent reduction).
30 to 49 percent rating: mid-tier exemption.
50 to 69 percent rating: larger exemption.
70 to 99 percent rating: near-maximum exemption.
100 percent rating: maximum exemption or full exemption.

Structure 3: income-tested partial reduction

A small number of states (and some local counties even in non-income-tested states) layer an income test on top of the rating requirement. The exemption is denied or reduced if the veteran's household income exceeds a threshold. New York, Wisconsin, and certain California counties layer income tests on the larger exemption tiers.

State-by-state quick reference

The table below is a high-level summary. Always confirm the current rule with the state department of veterans affairs and the county assessor before relying on the exemption.

State	Top-tier benefit	Notes
Alabama	Full exemption at 100% P&T	Primary residence; surviving spouse extension
Alaska	$150,000 assessed-value exemption at 50%+	Surviving spouse may continue
Arizona	Partial exemption at any rating	Income-tested
Arkansas	Full exemption at 100%	Includes TDIU; surviving spouse
California	Partial exemption; larger amount if low income	Two tiers based on income
Colorado	50% off first $200,000 assessed value at 100% P&T	Approved by state veterans board
Connecticut	$1,500 to $10,000 valuation exemption	Tiered by rating
Delaware	Full credit at 100%	Three-year state residency
Florida	Full exemption at 100% P&T	Surviving spouse permanent if not remarried
Georgia	$109,986 homestead exemption at 100%	Indexed; surviving spouse
Hawaii	Full exemption at 100%	Primary residence only
Idaho	$1,500 valuation reduction	10%+ rating
Illinois	Full exemption at 70%+; tiered below	Surviving spouse continues
Indiana	Up to $24,960 deduction; partial scaled	10%+ rating
Iowa	Full exemption at 100% P&T	Surviving spouse
Kansas	Refund up to $700	Income-tested
Kentucky	$46,350 homestead exemption	100% rating; indexed
Louisiana	$150,000 homestead exemption at 100%	$120,000 at 100% non-P&T tier
Maine	$6,000 valuation exemption	Higher tiers for paraplegic veterans
Maryland	Full exemption at 100% P&T	Surviving spouse
Massachusetts	Tiered $400-$1,500 exemption	Higher for paraplegic; surviving spouse
Michigan	Full exemption at 100% P&T	Surviving spouse
Minnesota	$300,000 market-value exclusion at 100% P&T	$150,000 at 70-99%
Mississippi	Full exemption at 100% P&T	Homestead only
Missouri	Property tax credit up to $1,100	Income-tested
Montana	Tiered 50-100% reduction	Income-tested
Nebraska	Tiered exemption 0-100% by rating and income	Income-tested
Nevada	$30,800 valuation exemption	Tiered by rating
New Hampshire	Full exemption at 100% P&T	$700 tax credit below
New Jersey	Full exemption at 100% P&T	Surviving spouse
New Mexico	Full exemption at 100%	Surviving spouse
New York	Alternative or eligible-funds exemption; local option	Many counties layer income test
North Carolina	$45,000 valuation exemption at 100% P&T	Surviving spouse
North Dakota	Up to $8,100 credit at 100%	Tiered below
Ohio	$50,000 homestead exemption at 100% P&T	No income test for veteran tier
Oklahoma	Full exemption at 100% P&T	Surviving spouse
Oregon	$28,886 valuation exemption	$34,665 if disabled in service; indexed
Pennsylvania	Full exemption at 100%	Income-tested above threshold; surviving spouse
Rhode Island	Local option; tiered exemption	Varies by city/town
South Carolina	Full exemption at 100% P&T	Surviving spouse
South Dakota	Full exemption at 100% paraplegic	Otherwise refund program
Tennessee	Property tax relief up to $175,000 valuation	100% P&T; income-tested
Texas	Full exemption at 100% P&T	Surviving spouse continues
Utah	Up to $479,504 valuation exemption	Scaled by rating; indexed
Vermont	$40,000+ exemption at 50%+	Local additional option
Virginia	Full exemption at 100% P&T	Surviving spouse continues
Washington	Income-tested exemption at 80%+	Three-tier income brackets
West Virginia	$20,000 homestead exemption	100% rating
Wisconsin	Tax credit equal to property tax on primary residence	100% rating; refundable
Wyoming	$3,000 valuation exemption	Wartime service

Use the property tax savings tool on this site →

How to apply

Locate the county property assessor (or county tax collector). The disabled veteran exemption is administered at the county level in most states, even when the rule is set by state statute.
Gather documents. The packet typically includes a current VA disability rating decision letter showing percentage and effective date, proof of primary residence (driver license, utility bill, or voter registration showing the property address), and the state-specific exemption application form.
Submit before the deadline. Most states require submission before the start of the property tax year (often January 1, April 1, or July 1 depending on state). Late filers may forfeit the year's exemption and have to wait twelve months.
Confirm renewal cadence. Many states grant the exemption indefinitely once approved, with renewals required only if the rating or residence changes. A minority of states require annual renewal, especially where income is tested.
Recheck after rating changes. When a veteran's rating increases to 100 percent or is changed to Permanent and Total, the veteran should immediately refile with the county to capture the higher exemption tier.

Common pitfalls

Confusing schedular 100% with Permanent and Total. Several full-exemption states require P&T specifically. A 100 percent schedular rating that is not marked Permanent and Total may not qualify in those states.
Forgetting to file after moving. The exemption is tied to a specific property. A veteran who sells and buys a new home must file a fresh exemption application at the new county.
Property held in an LLC. Most states restrict the exemption to property owned in the veteran's name (or with the spouse). Property held in an LLC, trust, or other entity typically does not qualify, even when the veteran is the sole beneficial owner.
Missing the surviving spouse continuation. When a 100 percent rated veteran dies, the surviving spouse in many states must affirmatively file to preserve the exemption rather than relying on automatic continuation.
Ignoring income limits. States like Washington, California (lower tier), and certain New York counties layer income tests. A veteran whose household income rises above the threshold can lose the exemption even if the rating is unchanged.

Worked example

100 percent Permanent and Total rated Army veteran. Owns a $400,000 home as primary residence. Compares Texas to California.

Scenario A: Veteran lives in Texas.

Texas grants a full property tax exemption to veterans rated 100% service-connected disabled (P&T) on the primary residence.
Average effective property tax rate in Texas: approximately 1.7 percent.
Property tax bill without the exemption: $400,000 x 1.7% = $6,800.
Property tax bill with the exemption: $0.
Annual savings: $6,800.
Surviving spouse continuation: yes, if spouse does not remarry and continues to occupy the home.

Scenario B: Same veteran lives in California.

California grants a partial exemption only. The basic Disabled Veterans Exemption at the standard tier provides approximately $176,000 of valuation exemption (indexed annually). A low-income tier raises that to roughly $264,000, subject to an income limit of approximately $76,000.
Assume the veteran qualifies for the basic (standard) tier.
Average effective property tax rate in California: approximately 0.75 percent.
Property tax bill without the exemption: $400,000 x 0.75% = $3,000.
Property tax bill with the exemption: ($400,000 - $176,000) x 0.75% = $224,000 x 0.75% = $1,680. Tax saved is the exempted portion times the rate, or $176,000 x 0.75% = $1,320.
Annual savings: approximately $1,200 to $1,320.

Same veteran, same rating, same home value. Texas saves the veteran roughly $5,500 more per year than California. Over a 20-year retirement, that is more than $100,000 of after-tax money.

This example illustrates why state-level property tax rules belong in any retirement-location decision a 100% rated veteran is making, alongside state income tax, cost of living, and access to VA medical facilities.

Sources cited in this article

State statutes and state department of veterans affairs publications for each of the 50 states (linked through individual state guides in the related-block below).
County property assessor application materials (filed locally, not federally).
VA: Special claims and benefits (federal context on rating decisions used for state exemption applications)

VetDisabilityCalc is an independent reference site. We are not VA-accredited and we do not prepare or present VA claims. This guide is reference material and is not legal advice.