Fortunately, if you’ve served in the U.S. military, you may qualify for a property tax exemption. Requirements vary by state, and you may be eligible for a larger exemption if you have disabilities. Let’s take a look at property tax exemptions in general, how they work for veterans, and what exemptions are available in each state.
What Is a Property Tax Exemption?
Property tax is an annual tax on real property based on the assessed market value of your land and buildings. Each state—and sometimes, county—handles property assessments and taxes differently. A property tax exemption is the elimination of some or all of the property taxes you owe. A property may be eligible for exemption in a few different ways, including based on the existence of a homestead, whether it’s used as a place of worship, and whether it’s owned by a veteran.
Property Tax Exemptions for Veterans
States have different levels of exemptions for veterans depending on their status. Some states provide exemptions simply for having served in the military, while others require that veterans have a certain amount of disability. Some states may only give exemptions to veterans who are 100% permanently disabled or who receive Total Disability Individual Unemployability (TDIU). Check the rules for your state to be sure. In most cases, your disability must be service-connected, although there are a few exceptions. Most states require you to have been honorably discharged from service. Finally, many states include spouses of veterans in their exemptions, though you’ll want to check to see if this applies to you. Keep in mind that most veteran property tax exemptions require that you use the property as your primary residence, so investment properties or vacation homes won’t qualify.
Veterans Property Tax Exemptions by State
States have the ability to create their own requirements for veteran property tax exemptions. This can be confusing, especially if you’re not sure whether you meet the criteria. To help you out, we’ve put together a table outlining the requirements for each state. For more details, contact your local tax assessment office.
