Veterans who own homes might miss out on significant tax savings through homestead exemptions. These special property tax breaks honor their service while providing meaningful financial relief on their largest monthly expense.
What Is a Veteran's Homestead Exemption?
A veteran's homestead exemption is a property tax benefit specifically designed for military veterans and their families. Unlike standard homestead exemptions available to most homeowners, veteran exemptions typically offer more substantial tax reductions.
These exemptions reduce a property's taxable value, directly lowering the annual property tax bill. Depending on the state and individual circumstances, this reduction can range from a few hundred to several thousand dollars annually.
Who Qualifies for Veterans Homestead Exemptions?
Eligibility requirements vary by state but generally include:
Veterans who served during specific conflict periods
Those with service-connected disabilities
Surviving spouses of deceased qualifying veterans
Veterans who received honorable discharges and meet state-specific residency requirements can also qualify.
These requirements help ensure that benefits go to those who have demonstrated significant service to their country while allowing states to tailor programs to their budget constraints and veteran populations.
The property must typically be the veteran's primary residence, and they must have an ownership interest in the home.
Veterans Exemptions By State
Veteran benefits vary significantly across states. Here's what some of the major states offer:
Texas
Texas offers some of the most generous veteran exemptions in the country. Veterans with 100% service-connected disabilities qualify for a 100% property tax exemption on their primary residence.
Veterans with lower disability ratings receive partial exemptions based on their rating percentage. For example, a veteran with a 70% disability rating would receive a $12,000 reduction in taxable value.
Florida
Florida provides a $5,000 reduction in assessed value for veterans with a VA-certified service-connected disability of 10% or greater. Veterans with 100% permanent disabilities may qualify for a total exemption from property taxes on their homestead.
Illinois
Illinois offers a $2,500 to $5,000 reduction in equalized assessed value for qualifying veterans. Veterans with a service-connected disability of at least 70% are exempt from paying property taxes on their primary residence.
Georgia
Georgia provides qualified disabled veterans with an exemption up to $109,986.
California
California’s Disabled Veterans' Exemption offers qualifying veterans a basic exemption of $100,000. Veterans who also qualify for the low-income exemption can claim up to $150,000. These values are adjusted based on inflation.
Washington
Washington offers a property tax exemption for disabled veterans based on income thresholds. These exemptions are provided to senior veterans, those retired due to disability, and veterans with 80% or higher disability ratings.
New York
New York's Alternative Veterans Exemption reduces assessed value by 15% for wartime veterans. Those who served in combat roles may qualify for an extra 10%.
How To Apply for a Veterans Homestead Exemption
Applying for a veteran homestead exemption requires several steps:
Verify eligibility based on the state's specific requirements
Gather required documentation, which typically includes proof of:
Military service (DD-214 or equivalent)
Disability rating from the VA (if applicable)
Property ownership
Primary residence
Complete the county's application form for veteran exemptions
Submit the application and supporting documents to the local county appraisal district or tax assessor's office
Follow up with the tax office to confirm receipt and processing of the application
Most counties have specific filing deadlines for exemptions, often between January 1 and April 30, though some allow year-round applications. Veterans should check their local deadlines to avoid missing out on potential savings.
Common Mistakes To Avoid
When applying for homestead exemptions, veterans should be aware of several common pitfalls that can delay or prevent them from receiving benefits.
Missing application deadlines is perhaps the most frequent issue, as many counties have strict cutoff dates that, once passed, require waiting until the next tax year.
Failing to provide complete documentation can also stall applications, as can misunderstanding their state's specific eligibility requirements.
Many veterans mistakenly assume the exemption automatically renews each year, when annual verification might be required.
Additionally, veterans sometimes forget to update their exemption status if they move or if their disability rating changes, which can result in losing valuable benefits or not receiving the full amount they're entitled to.
How Veterans Exemptions Impact Property Tax Bills
To understand the impact on tax bills, let's look at an example:
Consider a veteran with a 70% disability rating who owns a home valued at $300,000 in Texas. The veteran qualifies for a $12,000 exemption on this property.
Without exemption: $300,000 × 2.5% tax rate = $7,500 annual property tax
With exemption: ($300,000 - $12,000) × 2.5% tax rate = $7,200 annual property tax
This represents a $300 savings every year. For veterans with 100% disability ratings who qualify for complete exemptions, the savings would equal the entire property tax bill.
Veterans should note that these exemptions can often be combined with standard homestead exemptions for even greater savings. Ownwell can help homeowners apply for homestead exemptions for that year and retroactively for up to two years across all U.S. states.
Veterans Exemptions vs. Standard Homestead Exemptions
Veteran exemptions typically provide greater benefits than standard homestead exemptions through several key advantages. They generally offer higher reduction amounts that can significantly decrease property tax burdens.
Veteran exemptions also typically have fewer restrictions on property value, making them accessible to veterans across various economic situations.
The additional benefits for disabled veterans can be substantial, with some states offering complete exemptions for those with 100% service-connected disabilities.
In some cases, veterans can claim both exemptions simultaneously, creating a powerful combination that maximizes their total tax savings and provides meaningful financial relief for those who have served their country.
Beyond Exemptions: Property Tax Appeals for Veterans
Even with exemptions, a veteran's home may still be overvalued by their county appraisal district. Property tax appeals can further reduce their tax burden.
At Ownwell, we specialize in property tax appeals and can help veterans identify opportunities for additional savings beyond exemptions.
Veterans have served their country, and now Ownwell is ready to serve them. Ownwell's team of local experts can help veterans navigate the complex world of veterans' exemptions and property tax appeals.
Our technology and expertise have helped thousands of homeowners save on property taxes. Visit our website to learn how you can start saving today.