When it comes to buying a home, disabled veterans face an uphill battle. Disabled veterans often require specially-outfitted housing, as well as possibly having limited employment opportunities. Thankfully, there are some legal provisions that help disabled veterans avoid the extra burden of yearly property taxes as well as possible financial assistance when it comes to home accessibility. If, after reading this blog post, you are left with questions, it is advisable that you talk to a VA home loan expert. With proper advisement, you may be able to avoid paying 100% of your property taxes in your jurisdiction.
This blog post focuses mostly on Michigan and Missouri. To find a list of property tax exemptions state-by-state, scroll to the bottom of the blog post.
Universal Disabled Veteran Property Tax Exemptions
In almost all jurisdictions, disabled veterans have the ability to petition their taxing authority for a property FULL tax exemption. Depending on the area, you will either have to submit a one-time waiver or an annual waiver. While most of this article will speak specifically about tax benefits for disabled veterans in Michigan and Missouri, you can find a table with individual state benefits at the bottom of this article.
How to Qualify for VA Property Tax Exemptions
Submitting an Affidavit in Michigan
To get an exemption on your property taxes, you will have to submit an affidavit to the Michigan Department of Treasury. The disabled veteran, or their surviving spouse, should ideally file this form in the first two months of the assessment year (January or February).
The affidavit will ask you to affirm your eligibility via attaching a copy of a letter from the U.S. Department of Veterans Affairs that:
- Has determined you to be permanently and totally disabled as a result of military service, and entitled to veterans’ benefits at the 100% rate
- Qualifies you to receive monetary assistance for specially adapted housing
- Determines you to be individually unemployable
Qualifying Acts in Michigan
There are two Public Acts in Michigan that provide financial assistance to disabled veterans.
The Public Act 179 of 1954 is available to disabled veterans who are receiving or has received, due to disability, financial assistance for specially adapted housing.
The Public Act 161 of 2013 (Senate bill 0352) is available to veterans who:
- Has been determined by the United States Department of Veterans Affairs to be permanently and totally disabled as a result of military service and entitled to veterans’ benefits at the 100-percent rate.
- Has a certificate from the United States Veterans Administration, or its successors, certifying that he or she is receiving or has received pecuniary (financial) assistance due to disability for specially adapted housing.
- Has been rated by the United States Department of Veterans Affairs as individually unemployable.
Conditions in Missouri
Veterans who are 100 percent disabled may be provided credit for a potion of their home taxes or rent paid in a particular year. Disabled veterans may receive a credit for $750 for taxes paid on a property that they are renting as a primary residence, or $1,100 in property tax credit for a home that they own.
Disabled veterans in Missouri who are seeking eligibility for rent property tax exemptions must have an income of $27,500 or less for a single person, or below $29,500 for a couple filing taxes jointly.
Disabled veterans in Missouri who are seeking eligibility for home property tax exemptions must have an income below $30,000 for a single filing, or below $34,000 for a married couple who is filing taxes jointly.
Determining Whether Your Property is Exempt
Many Michigan residents own homes that are “up-north,” and so they are often concerned about eligibility of those homes. Unfortunately, these types of homes are not eligible for disabled veteran property tax exemptions.
Property that is considered a “Homestead” of a disabled veteran or his or her unremarried surviving spouse is eligible for the exemption. This means that your property is only exempt if it is your primary residence. The Michigan Department of Treasury has more answers to eligibility issues here.
Even if the property is used part-time for business, it will be ineligible for property tax exemption.
How Much Will I Save?
There is no income or asset value limits in Michigan. If a disabled veteran meets the requirements of Public Act 161 of 2013, they will be eligible.
If a disabled veteran is approved for their property tax credit application, they may never have to pay property taxes again. With proper advisement from a VA home loan expert, you may be able to receive a 100% tax credit for property taxes within your jurisdiction.
Let’s give them an example as well please.
Homesite Mortgage works with veterans to make sure they can take advantage of all property tax exemptions for disabled veterans. If you have further questions about eligibility and VA home loans, contact us and we will help guide you through the home buying process.
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Property Tax Exemptions for Disabled Veterans State-by-State
| State | Conditions |
|---|---|
| Alabama | A disabled veteran in Alabama may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of service and has a net annual income of $12,000 or less. Exemptions differ between the state and counties, click here for detailed information. |
| Alaska | A disabled veteran in Alaska may receive a property tax exemption of up to the first $150,000 of the assessed value of his/her primary residence if the veteran is 50 percent or more disabled as a result of service. The exemption transfers to a surviving spouse if the veteran is deceased from a service connected cause. |
| Arizona | A disabled veteran in Arizona may receive a property tax exemption of $3,000 on his/her primary residence if the total assessed value does not exceed $10,000. |
| Arkansas | A disabled veteran in Arkansas may receive a full property tax exemption on his/her primary residence if the veteran is blind in one or both eyes, lost the use of one or more limbs or is 100 percent disabled as a result of service. |
| California | There are two categories for full property tax exemptions. Qualified veterans may receive a basic exemption if the assessed value does not exceed $100,000; or a low income exemption if the assessed value does not exceed $150,000 when the household income does not exceed $40,000. Both categories are for full property tax exemptions. |
| Colorado | A disabled veteran in Colorado may receive a property tax exemption of 50 percent of the first $200,000 of the actual value of his/her primary residence if the veteran is 100 percent disabled. A property tax deferral exists for eligible veterans over the age of 65 and for active duty personnel. |
| Connecticut | All eligible veterans in Connecticut may receive a property tax exemption of $1,500 from the total assessed value of his/her property if the veteran served at least 90 days of active duty during wartime and are honorably discharged. Veterans below a certain income level and/or disabled veterans are eligible for additional exemptions. Contact your municipality’s Tax Assessor for specific details. |
| Delaware | There are currently no state-mandated property tax exemptions for disabled veterans in Delaware. |
| Florida | A disabled veteran in Florida may receive a property tax exemption of $5,000 on any property he/she owns if 10 percent or more disabled from a result of service. If the veteran is 100% disabled as a result from service then he/she may receive a full property tax exemption. |
| Georgia | A disabled veteran in Georgia may receive a property tax exemption of $60,000 or more on his/her primary residence if the veteran is 100 percent disabled, depending on a fluctuating index rate set by the U.S. Secretary of Veterans Affairs. The 2016 amount is $63,780; property in excess of this exemption remains taxable. |
| Hawaii | A disabled veteran in Hawaii may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of service. |
| Idaho | A disabled veteran in Idaho may receive a property tax exemption up to $1,320 on his/her primary residence if the veteran is 10 percent or more disabled as a result of service and reported total income of $29,640 or less in 2016. |
| Illinois | A qualified disabled veteran in Illinois with a disability of at least 30-50% will receive a $2,500 reduction in EAV; those with 50-70% can receive a $5,000 exemption; and those with 70% or more pay no property tax. |
| Indiana | A disabled veteran in Indiana may receive a property tax exemption of up to $37,440 if the veteran served honorably during any period of wartime and is 100% disabled as a result from service, or is at least 62 years of age with at least a 10% service-connected disability. |
| Iowa | A veteran in Iowa may receive a property tax exemption of $1,852 on his/her primary residence if the veteran served on active duty during a period of war or for a minimum of 18 months during peacetime. A disabled veteran in Iowa may receive a full property tax exemption if the veteran is 100% disabled as a result from service. |
| Kansas | A disabled veteran or qualifying family member in Kansas may receive a property tax exemption on his/her primary residence if the veteran is 50 percent or more disabled as a result of service. The exemption amount is determined based on income. |
| Kentucky | Homeowners 65 and older or totally disabled as determined by a government agency in Kentucky may receive a property tax exemption of up to$36,900 on his/her primary residence. |
| Louisiana | A disabled veteran in Louisiana may receive a property tax exemption of up to the first $150,000 of the assessed value of his/her primary residence if the veteran is 100 percent disabled as a result of service. |
| Maine | A disabled veteran in Maine may receive a property tax exemption of up to $6,000 on his/her primary residence if the veteran is 62 years or older or is 100 percent disabled. |
| Maryland | A disabled veteran in Maryland may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of service. |
| Massachusetts | A disabled veteran in Massachusetts may receive a property tax exemption on his/her primary residence if all qualifications are met. To qualify, one must be at least 10% disabled, must have lived in MA for 6 months prior to enlisting and have lived in the state for 5 consecutive years. An exemption of $400 may be received if the veteran is 10 percent or more disabled, a Purple Heart Recipient or Gold Star parent. A $750 exemption may be received if the veteran lost the use of one hand, one foot or one eye; $1,250 if the veteran lost the use of both hands, both feet or a combination of the two, or if the veteran is blind in both eyes as a result of service. A veteran may receive a $1,500 exemption if 100 percent disabled as a result of service. The MA Department of Revenue prepared a full overview of local exemptions. |
| Michigan | A disabled veteran in Michigan may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of service. The state also offers a homestead tax credit and property tax relief for active military personnel. |
| Minnesota | A disabled veteran in Minnesota may receive a property tax exemption of up to $300,000 on his/her primary residence if the veteran is 100 percent disabled as result of service. Veterans with a disability rating of 70 percent or more may receive an exemption of up to $150,000. Surviving spouses of military personnel are eligile to receive a $300,000 exclusion. |
| Mississippi | A disabled veteran in Mississippi may receive a full property tax exemption on his/her primary residence if the assessed value is $7,500 or less and the veteran is 100 percent disabled as a result of service. |
| Missouri | A disabled veteran in Missouri may receive a full property tax exemption on his/her primary residence if the veteran is a former Prisoner of War and is 100 percent disabled as a result of service. |
| Montana | A disabled veteran in Montana may receive a property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of service. The exemption amount varies based on income and marital status, as determined by the Montana Department of Revenue. |
| Nebraska | A disabled veteran in Nebraska may receive a property tax exemption on his/her primary residence if the veteran is 100% disabled as a result of wartime service. |
| Nevada | A disabled veteran in Nevada may receive a property tax exemption of up to $20,000 of the assessed value of his/her primary residence if the veteran is 60 percent or more disabled as a result of service. |
| New Hampshire | A disabled veteran in New Hampshire may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled, has lost two or more limbs or is blind in both eyes as a result of service. A disabled veteran that is 100 percent disabled may receive a tax credit of $700. |
| New Jersey | A disabled veteran in New Jersey may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of wartime service. |
| New Mexico | A disabled veteran in New Mexico may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of wartime service. Any veteran may qualify for a $4,000 reduction if the veteran served a minimum of 90 days consecutive active duty and was honorably discharged. |
| New York | A disabled veteran in New York may receive one of three different property tax exemptions on his/her primary residence. The exemption amount varies based on type of service, disability as determined by the New York State Division of Veterans Affairs and the value of the exemption as determined by the county or municipality. |
| North Carolina | A disabled veteran in North Carolina may receive a property tax exemption of up to the first $45,000 of the appraised value of his/her primary residence if the veteran is 100 percent disabled as a result of service. |
| North Dakota | A paraplegic disabled veteran in North Dakota may receive a property tax exemption for the first $120,000 on his/her primary residence or if the veteran has been awarded specially adapted housing. A disabled veteran with a rating of 50% or greater may receive an exemption against the first $6,750 of the taxable valuation. |
| Ohio | A disabled veteran in Ohio may receive a property tax exemption up to $50,000 of the market value on his/her primary residence if the veteran is 100 percent disabled as a result of service. |
| Oklahoma | A disabled veteran in Oklahoma may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of service. The Oklahoma 100% Veteran Disability Tax Exemption applies to sales tax, excise tax and ad valorem tax. |
| Oregon | A disabled veteran or surviving spouse in Oregon may receive a property tax exemption on his/her primary residence if the veteran is 40 percent or more disabled as a result of service. The exemption amount varies annually according to income and increases by 3% each year. The 2016 exemption amounts are $20,158 or $24,191. |
| Pennsylvania | A disabled veteran in Pennsylvania may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of wartime service. To be eligible a veteran must prove financial need, which according to the state is income less than $87,212. Veterans whose income exceeds that value may still be eligible. |
| Rhode Island | A disabled veteran in Rhode Island may receive a property tax exemption on his/her primary residence. The exemption amount varies based on county, the value of the property and the exemption category that the veteran qualifies for. There are seven categories: Veterans’ regular exemption, Unmarried Widow of Qualified Veteran, Totally Disabled Veteran, Partially Disabled Veteran, Gold Star Parents’ exemption, Prisoner of War exemption and Specially Adapted Housing exemption. |
| South Carolina | A disabled veteran in South Carolina may receive a full property tax exemption if the veteran is 100 percent disabled as a result of service. The disability rating from the Department of Veterans Affairs must include one of the following conditions: paraplegia, hemiplegia or quadriplegia, Parkinsons, Multiple Sclerosis (MS), or Amyotrophic Lateral Sclerosis (ALS). A Homestead exemption is available for all persons over 65 and/or totally and permanently disabled. |
| South Dakota | A disabled veteran in South Dakota may receive a property tax exemption of up to $100,000 on his/her primary residence if the veteran is 100 percent disabled as a result of service. Paraplegic veterans may receive a full propery tax exemption. |
| Tennessee | A disabled veteran in Tennessee may receive a property tax exemption on the first $100,000 of his/her primary residence if the veteran is 100 percent disabled and has lost the use of two or more limbs or is blind in both eyes as a result of service. The exemption amount varies by county. |
| Texas | A totally disabled veteran in Texas may receive a full property tax exemption if the veteran receives 100% disability compensation from the VA and a rating of 100% disabled unemployability. Partially disabled veterans and those over the age of 65 may receive a property tax exemption based on their disability rating and age up to $12,000. |
| Utah | A disabled veteran in Utah may receive a property tax exemption on his/her primary residence if the veteran is 10 percent or more disabled as a result of service. The maximum exemption amount available to qualified veterans is $253,264. Active duty armed forces personnel may receive a full property tax exemption if he/she is deployed out-of-state for military duty. |
| Vermont | A disabled veteran in Vermont may receive a property tax exemption of at least $10,000 on his/her primary residence if the veteran is 50 percent or more disabled as a result of service. The exemption amount varies as each town votes on the amount. The maximum exemption amount allowed by the state is $40,000. |
| Virginia | A disabled veteran in Virginia may receive a full property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of service. |
| Washington | A disabled veteran in Washington may receive a property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of service. The exemption amount is based on income, as determined by the Washington State Department of Veterans Affairs. Veterans with less than a 100% disability rating may receive a partial exemption. |
| West VirginiaWisconsin | A 100 percent disabled veteran or any veteran over the age of 65 in West Virginia is exempt from paying taxes on the first $20,000 of assessed value on a self-occupied property if the veteran was a resident of the state at the time they enter military service. |
| Wisconsin | A disabled veteran in Wisconsin may receive a property tax credit on their state income tax return for his/her primary residence if the veteran is 100 percent disabled as a result of service or has a 100 percent SCD rating. The veteran must have lived in WI when they entered into service or for a 5 year period after entering. The exemption amount varies. |
| Wyoming | A veteran in Wyoming may receive a property tax exemption of $3,000 of the assessed value of his/her primary residence if the veteran has lived in the state for 3 or more years and served during a period of war. Disabled veterans are eligible for the same exemption. |
| District of Columbia | A veteran must be over the age of 65 or disabled in order to qualify for a property tax exemption in the District of Columbia. The exemption reduces the veteran’s property tax by 50 percent. To qualify the veteran must own at least 50 percent of the property and annual income cannot exceed $100,000. |