More than 20 states waive property taxes entirely on the primary residence of a veteran rated 100% service-connected disabled, and nearly every remaining state offers a partial exemption worth thousands of dollars a year. Because the 100% disabled veteran property tax exemption is administered state by state, the amount, the eligibility fine print, and the application process all depend on where you live. A few states layer on income limits or require specific VA designations beyond the 100% rating, so the details matter even when your state shows up on the “full exemption” list.
Who Qualifies
Every state sets its own rules, but the baseline criteria overlap heavily. You will almost always need four things: a 100% disability rating from the VA (either a schedular rating or a Total Disability based on Individual Unemployability determination), proof the disability is service-connected, an honorable discharge documented by your DD-214, and ownership and occupancy of the home as your primary residence.1Oregon Department of Revenue. Disabled Veteran or Surviving Spouse Property Tax Exemption Investment properties and vacation homes don’t qualify anywhere.
Several states go further and require the VA’s “Permanent and Total” (P&T) designation, meaning the VA doesn’t expect your condition to improve. New Jersey, Oklahoma, and Colorado all require P&T for their full or top-tier benefit.2Colorado Division of Veterans Affairs. Property Tax Exemption If your VA letter says 100% but doesn’t include the P&T language, check your state’s rules carefully before assuming you qualify for the highest benefit.
States That Waive Property Taxes Entirely
The following states offer a full property tax exemption on the primary residence of a veteran rated 100% disabled by the VA. Conditions vary, and several are noted below.
- Alabama
- Arkansas
- Florida
- Hawaii
- Illinois
- Iowa
- Maryland
- Michigan
- Mississippi
- Nebraska
- New Jersey
- New Mexico
- Oklahoma
- South Carolina
- Texas
- Virginia
Texas exempts the total appraised value of the homestead for veterans with a 100% rating or an individual unemployability determination.3Comptroller of Public Accounts. 100 Percent Disabled Veteran and Surviving Spouse Frequently Asked Questions4Florida Department of Revenue. Veteran Benefit Brochure5Virginia Code Commission. Virginia Code 58.1-3219.5 – Exemption from Taxes on Property for Disabled Veterans6NJ.gov. New Jersey Property Tax Programs for Veterans7VA News. Unlocking Veteran Tax Exemptions Across States and U.S. Territories Nebraska’s homestead program places 100% disabled veterans (and those with 100% individual unemployability) in a category with no income or property value limits, which functions as a full exemption.8Nebraska Department of Revenue. Nebraska Homestead Exemption Information Guide
Full Exemptions With Strings Attached
A few states offer what looks like a full exemption but attach conditions that can catch veterans off guard. Pennsylvania provides a full real estate tax exemption for 100% disabled veterans, but applicants must demonstrate financial need. If your annual income exceeds $114,637, you’ll need to show that your monthly expenses exceed your monthly income to qualify.9Commonwealth of Pennsylvania. Real Estate Tax Exemption
New Hampshire’s full exemption is narrower. It applies only to veterans whose home was specially adapted through a VA-approved Special Adapted Housing or Special Home Adaptation grant, or purchased with proceeds from selling such an adapted home.10Concord, NH – Official Website. Certain Disabled Veterans Exemption A 100% P&T rating alone won’t unlock the full waiver there.
New Mexico recently overhauled its system. Starting in 2026, the state provides a proportional exemption matching the veteran’s federal disability rating rather than requiring 100% for full eligibility, and the standard veteran exemption increased from $4,000 to $10,000 with future inflation adjustments.
States With Significant Partial Exemptions
Veterans in states without a full waiver can still save thousands through partial exemptions. These reduce the assessed or taxable value of the home, which lowers the bill proportionally.
Fixed-Value Reductions
California exempts a portion of a home’s assessed value. For 2026, the basic exemption is $180,671, with a larger exemption of $271,009 available to veterans whose household income falls below $81,131.11California Board of Equalization. Disabled Veterans Exemption Increases for 2026 The figures adjust annually.
Minnesota reduces a home’s taxable market value by $150,000 for veterans with a 70% or higher rating, and by $300,000 for veterans with a 100% permanent and total rating.12Department of Revenue. Market Value Exclusion for Veterans with a Disability On a $350,000 home, the 100% exclusion leaves only $50,000 of value subject to tax.
Georgia offers an exemption of up to $121,812 as of 2025 for qualifying disabled veterans, with the amount indexed annually by the U.S. Secretary of Veterans Affairs. Colorado takes a percentage approach: 50% of the first $200,000 of your home’s actual value is exempt if you hold a 100% P&T rating, which works out to a $100,000 reduction in taxable value regardless of home price.13Colorado Department of Local Affairs Division of Property Taxation. Senior Citizen and Veterans with a Disability Property Tax Exemption and Senior Primary Residence Classification
Income-Based Sliding Scales
Montana ties its exemption to household income and marital status. A single veteran earning under $48,152 receives a 100% reduction, while those earning between $57,782 and $62,598 receive 50%. Married veterans and heads of household have higher thresholds, topping out at $72,229 for any reduction at all.14Montana Department of Revenue. Montana Disabled Veteran Assistance Program (MDV) The brackets adjust periodically.
Washington also bases its relief on income. Eligibility requires at least an 80% service-connected rating and a combined disposable income under a set threshold. VA disability compensation doesn’t count toward that income figure, which meaningfully expands who qualifies.
What a “Full” Exemption Still Doesn’t Cover
Even a full property tax exemption doesn’t wipe out everything on your bill. The exemption applies to ad valorem taxes, meaning taxes calculated on your property’s assessed value. Many jurisdictions also levy special assessments and direct levies for stormwater, fire districts, or voter-approved school bonds, and those typically survive the exemption. California’s exemption form states outright that it “does not apply to direct levies or special taxes.”15BOE.ca.gov. Claim for Disabled Veterans Property Tax Exemption Alabama and Mississippi carry similar carve-outs. Expect a small bill even in a full-waiver state; it isn’t an error.
Surviving Spouses
Most states that grant a full exemption extend it to the surviving spouse of a qualifying veteran, on the condition that the spouse has not remarried. Texas keeps the full homestead exemption in place for the unremarried surviving spouse as long as the property remains their primary residence.16Texas Comptroller of Public Accounts. Property Tax Exemptions Florida applies the same rule, and the exemption carries over to the unremarried surviving spouse who holds legal title and maintains the homestead.17Property Appraiser of Miami-Dade County. Veterans with Service-Connected Total and Permanent Disability Remarriage ends the benefit in virtually every state, so confirm the rule with your county assessor before any change in filing status.
If Your Rating Changes
A VA rating isn’t always permanent. If the VA reduces your rating below 100%, your exemption changes with it. In states with tiered exemptions, you drop to the lower tier. In Texas, a veteran whose rating falls from 100% to 70–99% moves from a full exemption to a $12,000 reduction in property value.18Texas Veterans Commission. Property Tax Exemptions Available to Veterans Per Disability Rating In states that only grant an exemption at 100%, dropping to 90% can eliminate it entirely. A P&T designation makes a re-examination far less likely, which protects the exemption as well as the underlying benefit.
How to Apply
The exemption doesn’t attach automatically when the VA issues your rating. You apply through your county tax assessor or appraiser’s office using a form available from the county, and you’ll need the parcel number from your deed or a recent tax bill.
Along with the form, plan to submit three documents:
- Your VA benefit verification letter showing the disability rating percentage, service-connected status, and (where applicable) the P&T designation. Request the detailed benefit letter rather than the basic summary.
- Your DD-214 showing an honorable discharge.
- Proof the property is your primary residence, such as a driver’s license or utility bills at the address.
Deadlines are local and easy to miss. Many counties set them in early spring; March 1 is common, and Florida requires first-time applicants to file by that date.17Property Appraiser of Miami-Dade County. Veterans with Service-Connected Total and Permanent Disability Missing the deadline usually means waiting a full year for the exemption to take effect. Contact your assessor well before the date to confirm what’s required.
Processing runs from a few weeks to about 90 days. Veterans with a P&T rating often file once and never recertify. Where the exemption depends on income limits or a non-permanent rating, annual renewal is common. Ask your assessor which category you fall into.
Retroactive Claims and Refunds
Veterans who received their 100% rating months or years before learning about the exemption may be able to recover taxes they shouldn’t have paid. Some states allow retroactive exemptions dating back to the effective date of the VA rating rather than the date you filed.
California is among the more generous. Where a delayed VA rating prevented timely filing, the exemption can be applied retroactively and taxes paid on the exempt portion of value, including interest and penalties, can be cancelled or refunded, with a lookback of up to eight years from the date of payment.19California State Board of Equalization. Disabled Veterans Exemption South Carolina has made its full exemption for totally disabled veterans retroactive to 2022.7VA News. Unlocking Veteran Tax Exemptions Across States and U.S. Territories
Not every state allows retroactive relief, and the refund process is separate from the standard exemption application. If you’ve been paying property taxes since before your VA rating was finalized, ask your county assessor whether your state allows a retroactive claim and what the deadline is. It’s one of the most commonly missed pieces of the entire program.