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Veterans Property Tax Exemption Guide 2025 | How to Apply | reAlpha Mortgage

July 31, 2025

9 minutes

Veterans Property Tax Exemption Guide 2025 | How to Apply | reAlpha Mortgage

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.

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
  • Up to 75% commission rebate – when you buy with reAlpha, depending 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.

State-by-State Disabled Veterans Property Tax Exemptions (2025)


StateMinimum Disability %Exemption Amount
Texas100%Full exemption
Florida100%Full exemption
Michigan100%Full exemption
New York15%+Varies by county
California100%Up to $150,000 (indexed annually)
Arizona100%$3,000–$4,000 reduction
Illinois70%+Up to full exemption
Georgia100%$85,645+ exemption
Ohio100%$50,000 exemption
Colorado100%(P&T)50% of first $200,000

Sources: VA.gov, State Assessor’s Offices (2025 updates)

Find the Perfect Mortgage for Your Dream Home with reAlpha Mortgage.

Compare options, calculate payments, and get expert guidance - all in one place.

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How to Apply for Your Veterans Property Tax Exemption?

It’s simpler than you think.

Step-by-Step Checklist:

  1. Verify Your VA Disability Rating
  2. Gather Required DocumentsDD-214 (Discharge Documents)
    • VA Rating Letter
    • Proof of Homeownership (e.g., property deed)
    • Photo ID + Proof of Primary Residence
  3. Contact Your Local Assessor Search "[Your County] + property tax exemption"
  4. 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 your dream home shouldn’t cost you thousands more than it needs to.

At reAlpha Mortgage, eligible veterans can unlock up to 75% of their buyer agent’s commission back—money you can use for inspections, closing costs, or upgrades.

Here’s how it stacks up:

  • 25% rebate when you work with a reAlpha-connected agent
  • 50% rebate when you add a reAlpha Mortgage
  • Full 75% rebate when you bundle in reAlpha Title

Pair that with your VA loan and property tax exemption, and you could save tens of thousands on your next home.

👉 Ready to buy smarter? Explore your savings at reAlpha Mortgage

FAQs: Veterans & Property Taxes

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).

Learn how to get a VA Certificate of Eligibility

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 up to 75% buyer agent commission rebate—cutting both your monthly 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.

Find the Perfect Mortgage for Your Dream Home with reAlpha Mortgage.

Compare options, calculate payments, and get expert guidance - all in one place.

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Article by

NK
Nathan Knottingham

Proudly serving as Head of Go-to-Market Strategy at reAlpha, focusing on holistic homeownership journeys.

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