States With No Property Tax for 100% Disabled Veterans

More than a dozen states charge no property tax on the primary residence of a veteran the VA has rated 100% permanent and total. The list of states with no property tax for 100% disabled veterans includes Alabama, Arkansas, Florida, Hawaii, Maryland, Michigan, New Jersey, New Mexico, Oklahoma, South Carolina, Texas, and Virginia, plus Illinois, New Hampshire, and Pennsylvania under conditions worth reading closely. In every case the exemption covers the home you actually live in, not a rental or second home, and you have to apply — it does not attach automatically once your rating comes through.

States That Fully Waive Property Tax on a 100% Disabled Veteran’s Home

Alabama. Permanently and totally disabled veterans are exempt from all state ad valorem taxes on the homestead and up to 160 adjacent acres.¹
Arkansas. Full exemption on real and personal property at the homestead. Veterans rated individually unemployable also qualify. Updated VA benefit documentation is due October 15 each year.
Florida. The full assessed value of the homestead is exempt for veterans with a service-related total and permanent disability, including those confined to wheelchairs.²
Hawaii. Totally disabled veterans are exempt from all property taxes except the county minimum. Each county — Honolulu, Maui, Kauai, Hawaii — runs its own application process.³
Maryland. Veterans with a 100% service-connected permanent and total disability pay no real property tax on the dwelling and surrounding yard.⁴
Michigan. The homestead of a 100% disabled veteran is exempt from all property tax collection. Michigan explicitly includes veterans rated individually unemployable and those receiving VA specially adapted housing assistance. Exemptions granted on or after January 1, 2025 stay in effect without annual reapplication until the veteran rescinds it or the assessor denies it.⁵
New Jersey. Honorably discharged veterans who are 100% permanently and totally disabled receive an annual property tax exemption on the principal residence.⁶
New Mexico. The principal residence of a disabled veteran is exempt, limited to the home and up to five surrounding acres.⁷
Oklahoma. The full fair cash value of the homestead is exempt. The veteran must be an Oklahoma resident with a 100% permanent service-connected disability certified by the VA, resulting from military action, accident, or disease contracted in active service.⁸
South Carolina. The home and up to five acres are exempt for veterans with a total, permanent, service-connected disability, along with up to two personal vehicles.⁹
Texas. Veterans awarded 100% disability compensation, or determined individually unemployable by the VA, receive a total exemption on the appraised value of the residence homestead.¹⁰
Virginia. Real property is exempt for veterans the VA has determined to have a 100% service-connected, permanent, and total disability, used as a principal residence. Veterans rated below 100% on the schedular scale but assigned individual unemployability also qualify.¹¹

Full Exemptions With Strings Attached

Three states run programs that look like the ones above but add a condition beyond the disability rating itself. Check these carefully before you count on paying zero.

Illinois gives a 100% exemption to veterans rated 70% or higher, capped at $250,000 of equalized assessed value. Because Illinois assesses at roughly one-third of market value, that effectively covers homes worth around $750,000 or less, so most veteran homesteads pay nothing.¹²

New Hampshire reserves its full exemption for homes acquired or modified with VA assistance, such as through the Specially Adapted Housing program. Veterans also need a 100% total and permanent rating, individual unemployability, or service-connected blindness or qualifying amputations.

Pennsylvania requires financial need. In 2025 the presumptive threshold was $114,637 in annual income. Veterans below that are presumed to qualify; those above must show monthly expenses exceed monthly income.¹³

Who Qualifies

Three requirements show up in nearly every state offering the full exemption: a qualifying VA disability rating, an honorable discharge, and homestead occupancy.

The rating comes from the U.S. Department of Veterans Affairs. Most states set the bar at 100% total and permanent, meaning the VA has determined the condition is both fully disabling and unlikely to improve. Without that VA determination in writing, no application succeeds.⁴

Individual unemployability, known as TDIU or IU, is the frequent point of confusion. Veterans rated below 100% on the VA’s schedular scale but deemed unable to hold substantially gainful employment because of service-connected disabilities are compensated at the 100% rate. Most states with full exemptions treat IU veterans the same as schedular 100% veterans. Texas, Virginia, Michigan, and Arkansas all say so in their statutes.¹⁰⁵

Discharge status is the other gatekeeper. Virtually every state requires an honorable discharge. New Hampshire’s language is slightly broader, requiring a discharge “other than dishonorable,” which can pull in general discharges. If your characterization is anything other than honorable, read your state’s exact wording before ruling yourself out.

Homestead occupancy means you own and live in the property. Investment houses, rentals, and vacation homes do not qualify anywhere. Some states cap the acreage: South Carolina and New Mexico both limit the land portion to five acres around the home.⁹⁷

Income Limits That Can Shrink the Benefit

Most states with full exemptions ignore income. A few do not.

Arizona applies income limits even to veterans with a 100% rating. Household income cannot exceed $39,865 without minor children, or $47,826 with minor or disabled children.

California ties the exemption amount to income rather than using it as a pass/fail. Veterans whose household income stays under $81,131 can exempt up to $271,009 of property value; above that threshold, the exemption drops to $180,671.¹⁴

Pennsylvania’s need test, described above, works similarly: earn under the threshold and eligibility is presumed; earn over it and you have to document that expenses exceed income.¹³

If you’re weighing a move and your household income sits above these numbers, run the math before assuming you’ll pay nothing.

How to Apply

The exemption does not attach itself when your rating letter arrives. You file with your local county tax assessor, and the core documents are the same almost everywhere:

DD Form 214. Your Certificate of Release or Discharge from Active Duty, showing service dates and discharge characterization.
VA Benefits Summary Letter. This states your disability percentage and effective date. Download a current copy from the VA’s eBenefits portal or request one by mail.
Proof of homestead occupancy. A voter registration card, utility bill, or driver’s license showing the property as your residence.

Then get the specific exemption application from your county assessor, usually available online. Transcribe your VA claim number, disability effective date, and rating percentage exactly as the VA letter shows them. Mismatches between your form and the VA’s records are one of the most common causes of processing delays.

Counties accept applications by mail, in person, or through online portals. Processing runs from a few weeks to a few months. The approved exemption usually takes effect in the next tax cycle, though some jurisdictions apply it to the current year if you file early enough.

Deadlines, Renewals, and Retroactive Refunds

Miss the deadline and you pay the full bill for another year. Deadlines vary widely. Texas sets a general May 1 deadline for exemption applications. Hawaii uses June 30 for the first payment period and December 31 for the second. Arkansas requires the VA benefits summary annually by October 15. Michigan gives you the full calendar year, January 1 through December 31, for the current tax year.⁵

Renewal rules split two ways. Some states grant a permanent exemption that stays put until you sell the home, move, or the assessor rescinds it. Michigan works this way for exemptions granted on or after January 1, 2025. Other states require annual renewal — Arkansas is the clearest example. If your state requires renewal and you forget, the exemption lapses and you owe the tax. Ask your county assessor which approach applies.

Veterans who receive a retroactive VA rating after already paying property taxes may be able to claim a refund. California allows refunds for up to eight years after the payment date.¹⁴ Other states generally allow somewhere in the five- to eight-year range. If you recently got a rating increase to 100%, ask about retroactive relief right away, because the clock is running on how far back you can recover.

Surviving Spouses

A veteran’s death does not automatically end the property tax exemption. Most states with full exemptions extend the benefit to the surviving spouse, as long as the spouse stays unmarried and continues to live in the home.

Eligibility usually requires one of two conditions: the veteran was already receiving the exemption at death, or the veteran died from a service-connected cause. California recognizes both paths and adds a third, covering the spouse of a veteran who would have qualified had they been alive on January 1, 1977.¹⁵ New Jersey requires the surviving spouse to hold active VA certification that the deceased veteran was 100% permanently and totally disabled and to own and occupy the home as a primary residence.⁶

Moving to a New Home

Several states let surviving spouses transfer the exemption to a new residence rather than tying it forever to the original property. Florida’s statute is explicit: if the spouse sells the exempted home, the exemption may transfer, but the amount cannot exceed the exemption from the most recent tax roll.¹⁶ Texas, Virginia, and Maryland also allow portability, though each requires the spouse to refile promptly with the new county’s assessor.¹¹

Remarriage ends the exemption in every state that offers it. If you’re a surviving spouse considering remarriage, understand that the benefit disappears the day you remarry, and it cannot be reinstated even if the new marriage ends in divorce or death.

1
Alabama Legislature. Alabama HB396 – Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act
2
Florida Department of Revenue. Property Tax Benefits for Active Duty Military and Veterans
3
City and County of Honolulu. Totally Disabled Veterans
4
Department of Veterans and Military Families. Tax Exemptions
5
Michigan Legislature. MCL 211.7b
6
State of New Jersey. 100% Disabled Veteran Property Tax Exemption
7
New Mexico Legislature. New Mexico Code 7-37-5 and 7-37-5.1 – Veteran Property Tax Exemption
8
Oklahoma.gov. Benefits Pages
9
South Carolina Department of Revenue. Veterans – Learn More About SC Property Tax Exemptions
10
Texas Comptroller of Public Accounts. 100 Percent Disabled Veteran and Surviving Spouse Frequently Asked Questions
11
Virginia Department of Veterans Services. Tax Exemptions
12
Illinois Department of Revenue. Information About Property Tax Relief for Veterans and Persons With Disabilities
13
Pennsylvania Department of Military and Veterans Affairs. Real Estate Tax Exemption
14
California Department of Tax and Fee Administration. Disabled Veterans Exemption
15
California Department of Tax and Fee Administration. Disabled Veterans Exemption – Section: Unmarried Surviving Spouse
16
The 2025 Florida Statutes. Florida Statutes 0196.081