February 3, 2026
9 minutes
Property taxes shouldn’t feel like a penalty for serving your country. Unfortunately, many 100% disabled veterans overpay on property taxes simply due to a lack of awareness about exemptions they’ve earned.
This 2025 guide outlines where you may qualify for a $0 property tax bill, how to apply, and how to combine this benefit with a VA home loan for maximum financial efficiency.
Key Takeaways
- Full Exemptions: States like Texas, Florida, and Michigan offer 100% disabled veterans full property tax exemptions, saving thousands annually.
- Application Required: Exemptions are not automatic. Veterans must apply through their county assessor's office with proof of disability and residence.
- State Variability: Some states offer benefits for disability ratings as low as 10%, while others require 100%.
- Maximize with VA Loan: Combine your property tax exemption with a VA loan (no down payment, no PMI) to minimize overall homeownership costs.
- Watch the Deadlines: Most applications must be submitted in spring - don’t miss out due to timing.
States With Low Disability Thresholds for Tax Exemptions
Not 100% disabled? You might still qualify.
- New York: Benefits start at 15% disability
- Illinois: Partial exemption at 70%
- Arizona: Reductions available even at lower ratings
Check this VA Disability Pay Chart to confirm your eligibility.
Get Pre-Qualified and Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% at closing when you combine real estate and mortgage services with reAlpha.
How to Combine VA Loan + Property Tax Exemption
If you’re buying a $300,000 home as a 100% disabled vet:
- $0 down payment – thanks to your VA loan
- $0 property taxes – via state exemption
- Commission rebate-when you buy with reAlpha, the amount you receive depends on your agent, mortgage, and title package.
- Add in lender credits, no PMI, and you’re looking at ultra-low monthly costs
Explore VA Loan Benefits →
What Are Property Tax Exemptions for Disabled Veterans?
A property tax exemption reduces or eliminates the annual taxes paid on your home’s assessed value. For disabled veterans, these are state- and sometimes county-level benefits.
How They Work:
- Apply to your primary residence only
- Most require a VA-certified disability rating (often 100%)
- Some states offer partial relief starting at 10–15%
Pro Tip: If you’re rated 100% Permanent & Total (P&T), you may qualify for a full exemption in many states.
State Variations You Should Know
- Texas, Florida, Michigan: Full exemption for 100% disabled veterans
- New York: Tiered exemption starting at 15%; varies by county
- California: Exempts up to $150,000 in home value, adjusted annually
- Important Note: The VA does not issue the exemption - your local assessor's office does, based on VA documentation
Do Veterans Pay Property Taxes?
Generally, yes – unless a property tax exemption is in place.
Common Myths:
- “VA pays my taxes.” - False
- “All veterans qualify.” - Only with certain disability ratings
- “It’s automatic.” - You must apply through your local assessor
Helpful Tip:
If you’re using a VA loan, reAlpha Mortgage experts can guide you through your exemption paperwork during the homebuying process - so you don't leave money on the table.
Veterans Can Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% on your purchase price by using reAlpha Realty and Mortgage together.
State-by-State Disabled Veterans Property Tax Exemptions (2025)
| State | Minimum Disability % | Exemption Amount |
|---|---|---|
| Texas | 100% | Full exemption |
| Florida | 100% | Full exemption |
| Michigan | 100% | Full exemption |
| New York | 15%+ | Varies by county |
| California | 100% | Up to $150,000 (indexed annually) |
| Arizona | 100% | $3,000–$4,000 reduction |
| Illinois | 70%+ | Up to full exemption |
| Georgia | 100% | $85,645+ exemption |
| Ohio | 100% | $50,000 exemption |
| Colorado | 100%(P&T) | $200,000 |
Sources: VA.gov, State Assessor’s Offices (2025 updates)
How to Apply for Your Veterans Property Tax Exemption?
It’s simpler than you think.
Step-by-Step Checklist:
- Verify Your VA Disability Rating
- Access your Benefits Summary Letter at eBenefits.va.gov
- Gather Required DocumentsDD-214 (Discharge Documents)
- VA Rating Letter
- Proof of Homeownership (e.g., property deed)
- Photo ID + Proof of Primary Residence
- Contact Your Local Assessor Search "[Your County] + property tax exemption"
- Apply Before the Deadline
- Most states have spring deadlines (March–April)
- Late applications can delay your benefits by a year
Maximize Benefits: Combine VA Loan + Tax Exemption
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
Estimate your savings → Rebate Calculator
Ready to buy smarter? Explore your savings at reAlpha Mortgage
FAQs
How do I apply for a veterans property tax exemption?
- Contact your county assessor's office.
- Submit your VA disability rating letter (typically showing 100% disability).
- Include documents like your property deed and photo ID.
- Apply before the spring deadline (usually March-April).
Do veterans have to pay property taxes?
- Yes, unless you qualify and apply for a state-based exemption.
- The VA does not pay your property taxes directly. Exemptions depend on your disability rating and state law - but reAlpha Mortgage can help ensure you claim every benefit you’ve earned.
Can I use both a VA loan and a property tax exemption together?
Yes. These benefits stack beautifully. With reAlpha Mortgage, you can pair your VA loan with a full property tax exemption and a commission-back program-helping reduce both your monthly payments and closing costs.
What VA disability rating qualifies for property tax exemption?
- States vary: some offer partial exemptions starting at 10%, while others require 100%.
- Most full exemptions go to veterans with 100% Permanent & Total (P&T) ratings.
Is the exemption automatically applied if I qualify?
No. You must apply through your local assessor with supporting documents.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.