Property Tax Exemption For Disabled: 11 Things (2021) You Need To Know

If you’re a disabled veteran or homeowner, you may be looking for some tax relief – perhaps even a property tax exemption.

Well, you’re in luck!

Did you know that most states offer some sort of property tax exemption for disabled homeowners?

This can reduce your annual tax burden significantly and allow you to free up funds for other purposes.

Here’s what you need to know about taking advantage of this property tax exemption.

1. What is a property tax exemption?

A property tax exemption means you don’t have to pay as much property tax on your home.

2. What is the disability property tax exemption?

A property tax exemption for a disabled individual reduces the property tax burden for disabled homeowners.

This essentially lowers a home’s taxable value, which decreases the annual taxes the homeowner owes on the property.

There is no single federal disability property tax break that homeowners qualify for.

Instead, all tax exemptions are at the state and local levels.

To understand your options, we recommend you look to your state for information.

3. How do I prove I have a disability?

When applying for a property tax exemption, you can prove you have a disability using your Social Security Administration award later or “Proof of a Disability Statement” signed by your doctor.

4. Will I have to pay back taxes later?

No, if you receive a property tax exemption because you’re disabled, you do not need to pay regular taxes back later.

5. Will there be a lien on my property?

No, because the property tax exemption lowers your property taxes, there will not be a lien on your property.

6. Will my property taxes still go up with the value of your house?

It depends on how your jurisdiction handles exemptions.

Sometimes, if you receive a property tax exemption, your county will “freeze” your property value on January 1 of the year you apply for the exemption.

The county will then use the “frozen” value of your property.

Or if the market value is less than the frozen value, then they will use that amount to determine your property taxes for future years (as long as you continue to receive the property tax exemption).

7. Will the property tax exemption apply to my entire property?

It depends on your state’s rules.

Read the fine print for your state to answer this question!

8. Can you get a property tax exemption if you have a life estate?

Yes, you can get a property tax exemption if you have a life estate as long as you qualify otherwise.

9. How long will I be eligible to receive the property tax exemption?

You will receive the property tax exemption for every year you qualify.

Each state will have its own renewal guidelines, and your county assessor will likely send you a renewal application every few years when your exemption is about to end so you can reapply.

10. How do I apply for a property tax exemption for the disabled?

To apply for a property tax exemption when disabled, we recommend calling your county assessor.

Each state’s process varies, and they will be able to give you information about how to apply, when to apply, and what information you need to apply.

11. How does each state handle property tax exemptions for the disabled?

As each state has slightly different exemptions available, we’ve created a comprehensive list for disabled homeowners regardless of location.

That said, be sure to check your local appraisal district to ensure this information is up to date.

Also, keep in mind that individual counties or cities may have additional tax exemptions available, so be sure to call your local assessor for additional advice.

bulletAlabama

A veteran can receive a full property tax exemption on his/her primary residence if the veteran is has a service connected disability.

Additionally, homeowners who are retired due to a permanent and total disability also qualify for an H-2 property tax exemption.

Totally disabled homeowners regardless of age can qualify for an H-3 exemption, which exempts them from all taxes on properties up to 160 acres.

In both cases, homeowners must provide a physician’s affidavit confirming their disability.

Exemptions offered will differ between state and counties.

The H-2 property tax exemption (if you qualify) will offer a full exemption from state property taxes and reduce a property’s value by $5,000 on all property and school districts.

bulletAlaska

Disabled veterans in Alaska may receive property tax exemptions up to the first $150,000 of the assessed value of his/her primary residence if the veteran is 50 percent or more disabled due to service.

This exemption transfers to a surviving spouse if the veteran is deceased from a service-connected cause.

There is no exemption for nonmilitary homeowners with a disability.

bulletArizona

Arizona has property tax exemptions for both 100 percent disabled homeowners and widows/widowers of these residents.

Those who qualify are exempt on up to $27,498 of the assessed value of the home.

Additionally, the homeowners must also make below $33,722 as a household or $40,456 if a dependent lives on the property.

Disabled veterans and their widows/widowers can also qualify for an exemption of up to $3,000 if the assessed value is $10,000 or less.

Disabilities must be certified by a doctor.

bulletArkansas

Veterans who are blind, experiencing the loss of one or more limbs, and suffering a 100 percent service-related disability are exempt from all property taxes.

Widows, widowers, and dependents of veterans who were killed in service, died in the line of duty or due to service-related injuries, or were POW are also able to leverage this exemption.

However, there are no exemptions in Arkansas for nonmilitary disabled homeowners.

bulletCalifornia

If you’re rated 100 percent disabled by the Department of Veterans Affairs due to a service-related injury, you may qualify for either basic or low-income property tax exemptions in California.

However, there are no exemptions for non-military disabled homeowners.

bulletColorado

If you’re rated 100 percent disabled by the Department of Veterans Affairs due to a service-related injury, you may qualify for property tax exemptions in Colorado.

However, there are no exemptions for non-military disabled homeowners.

bulletConnecticut

In Connecticut, disabled homeowners are eligible for a $1,000 property tax exemption.

Blind homeowners are eligible for an additional exemption worth $3,000.

Disabled veterans have an exemption of their own, qualifying them for up to $3,000 in reduced assessed value.

bulletDelaware

Delaware is one of the few states with no property tax exemptions for either disabled homeowners or disabled veterans.

The only tax exemption in the state is for homeowners 65 and older.

bulletFlorida

Florida has several property tax disability exemptions, including for those who are legally blind, paraplegic, hemiplegic, or totally blind or disabled but able to use a wheelchair.

Veterans who are at least 10 percent disabled are exempted up to $5,000 on their property taxes while those with total or permanent disability related to their service are exempt on all taxes.

bulletGeorgia

The only disabled property tax exemption in the state of Georgia is reserved for veterans.

If you’re a disabled veteran, you’ll qualify for up to a $60,000 exemption (and perhaps an additional amount as determined by the Department of Veterans Affairs).

bulletHawaii

In Hawaii, property tax exemptions exist for both disabled veterans and nonmilitary disabled homeowners.

Veterans who are 100 percent disabled are entitled to a full exemption from property taxes.

If you’re a blind, deaf, or totally disabled homeowner, you’ll receive a $50,000 exemption.

If you suffer from Hansen’s Disease, you qualify for a $50,000 property tax exemption.

bulletIdaho

The only disability property tax exemption in the state is reserved for military veterans.

The exemption offers a $1,320 reduction of property taxes for veterans who are 100 percent disabled due to service-related income/injury.

This has no income limit.

However, there are no property tax exemptions for disabled, non-veteran homeowners.

bulletIllinois

This state offers exemptions for veterans with disabilities.

However, there are no exemptions for nonmilitary disabled homeowners.

bulletIndiana

Indiana offers property tax exemptions for disabled homeowners and veterans (must have a service-related disability of at least 10%).

Homeowners can have their assessed value reduced by up to $12,480.

Disabled veterans can get an exemption up to $24,960.

bulletIowa

Iowa doesn’t offer property tax exemptions for disabled persons, but it does have tax credits.

It offers the Disabled Veteran’s Homestead Tax Credit.

This offers veterans with a 100% service-related disability a tax credit worth the full amount of their tax bill.

The Senior and Disabled Citizens tax credit is similar and offers a one-to-one tax credit for those owners who qualify.

bulletKansas

Similar to Iowa, Kansas doesn’t have any exemptions, but it does have “refunds” that are available for disabled veterans who have at least 50 percent disability due to service and who were honorably discharged.

However, there are no exemptions or refunds for nonmilitary disabled homeowners.

bulletKentucky

This state offers homestead exemptions for homeowners who are totally disabled as determined by a government agency or retired system.

Disabled veterans are also eligible for this exemption.

It offers up to $39,300 in reduced assessed value.

bulletLouisiana

Louisiana offers property tax exemptions for disabled veterans who have a 100 percent disability rating due to a service-related disability.

Those who qualify will pay no property taxes in the state.

Nonmilitary homeowners with a 100 percent disability and veterans with a 50 percent or greater disability may also qualify for a special assessment if they make under a certain income.

bulletMaine

Maine offers property tax exemptions for disabled homeowners.

These exemptions include blind homeowners, who can receive a $4,000 exemption, and veterans (100 percent disability), who are eligible for up to $6,000.

Additionally, paraplegic veterans who received a Specially Adapted Housing grant can qualify for a $50,000 exemption.

bulletMaryland

Disabled veterans are fully exempt from all property taxes if they are rated 100 percent disabled by the Department of Veterans Affairs.

Even surviving spouses can be eligible for these benefits in some cases.

However, there are no exemptions for disabled, nonmilitary homeowners.

bulletMassachusetts

Massachusetts has two property tax exemptions for disabled persons.

The first is for blind homeowners, and it’s worth $500.

There’s another for disabled veterans who are eligible for up to $1,500 (if they are 100 percent disabled).

Veterans who are not 100 percent can receive exemptions of between $400 and $1,250.

Paraplegic veterans are fully exempt from property taxes if their disability is service-related.

bulletMichigan

Michigan has property tax exemptions available for both disabled veterans and nonmilitary disabled individuals.

Veterans who are 100% disabled are exempt from property taxes.

Nonmilitary disabled homeowners vary based on household incomes and have their exemptions max out at $1,500.

bulletMinnesota

In Minnesota, both blind and 100 percent disabled homeowners are eligible for exemptions of $50,000.

Military veterans who have a 100% disability rating are exempt from all property taxes on homes up to $300,000.

If you’re a veteran with a 70% disability rating, then you’re exempt up to $150,000.

bulletMississippi

Mississippi offers a property tax exemption for 100 percent disabled veterans and nonmilitary homeowners.

The homeowner must be 100 percent disabled as defined by the Federal Social Security Act.

If you qualify under this, then you’re excused from all property taxes in the state.

bulletMissouri

If you are 100 percent disabled in the state of Missouri, then you qualify for a property tax credit.

The sum of this credit is based on the taxes paid and the resident’s household income.

Disabled veterans also have a property tax credit they can leverage.

However, they must be 100 percent disabled to receive up to $1,100.

To qualify for both, the resident’s household income must be under $30,000 (single tax filers) and $34,000 (married tax filers).

bulletMontana

Montana’s tax relief program targets disabled veterans and offers a 50 to 100 percent reduction in property taxes for 100 percent disabled veterans who are below a certain income.

However, there are no property tax exemptions for nonmilitary disabled homeowners.

bulletNebraska

Nebraska offers property tax exemptions for disabled veterans and nonmilitary disabled homeowners (including those with developmental disabilities).

The total exemption depends on household income.

bulletNevada

Nevada offers disabled property tax exemptions for veterans and blind individuals.

Veterans who have at least a 60 percent disability and an honorable discharge are exempt on up to $28,000 of assessed property value.

Blind individuals are exempt on $2,400 in assessed value.

To qualify for this, residents must have lived in Nevada for at least six months.

bulletNew Hampshire

The state provides property tax exemptions for disabled, blind, and deaf homeowners as well as disabled veterans.

Blind and deaf homeowners are eligible for a $15,000 exemption.

The exemptions for disabled homeowners vary by municipality and city.

Disabled veterans are exempt from all property taxes if they’re honorably discharged and totally/permanently disabled due to service.

bulletNew Jersey

New Jersey offers a full property tax exemption for disabled veterans; however, they must be honorable discharged and disabled because of their service.

There is no exemption for nonmilitary disabled residents, but there is a tax deduction.

bulletNew Mexico

New Mexico has an exemption that qualifies 100 percent disabled vets for a full exemption from property taxes.

However, there’s no exemption for disabled, nonmilitary homeowners.

bulletNew York

New York offers several property tax exemption options.

Nonmilitary disabled homeowners are eligible for up to a 50 percent reduction if they fall beneath the maximum income limit set by their municipality.

Disabled veterans are eligible for additional exceptions if they served in the Cold War, a combat zone, or have a service-related disability.

bulletNorth Carolina

Totally and permanently disabled homeowners qualify for up to 50 percent or $25,000 reduction in their property’s appraised value.

However, their income must be under $31,000.

Disabled vets can see a $45,000 reduction if they have a 100 percent service-related disability and were honorable discharged.

bulletNorth Dakota

The state of North Dakota offers property taxes to permanently disabled residents who make less than $42,000.

The credit reduces the home’s assessed value by anywhere from 10 to 100 percent (depending on income).

The disabled veterans’ credit is also available to vets with a service-related disability of 50 percent or more.

Eligible veterans will see their home’s assessed value reduced by the disability rating.

For example, a 70 percent rating equals a 70 percent reduction in value.

bulletOhio

Ohio has a homestead exemption that’s available to permanently and totally disabled homeowners.

However, homeowners must have had an income of $32,800 or less in the most recent tax year.

Disabled veterans can also get an exemption if they are 100 percent disabled or receive 100 percent disability compensation from the Department of Veterans Affairs.

bulletOklahoma

Oklahoma has a disabled veterans property tax exemption which exempts qualified vets and their surviving spouses from property tax liabilities.

However, the qualifying vet needs to be 100 percent permanently disabled due to military service.

There’s no exemption for disabled, nonmilitary homeowners.

bulletOregon

Veterans who are more than 40 percent disabled can qualify for a property tax exemption in Oregon.

The amount of the exemption will depend on the homeowner’s income.

However, there’s no exemption for disabled, nonmilitary homeowners.

Instead, Oregon has a deferral program that does require repayment and includes interest charges.

bulletPennsylvania

Disabled veterans can be exempt from all property taxes if they are 100 percent disabled due to military services, were discharged honorably, and have an income below $92,594.

However, there’s no exemption for disabled, nonmilitary homeowners.

bulletRhode Island

There are property tax exemptions for disabled vets.

The total exemption will depend on the county and the severity of the disability.

There are some exemptions for visually impaired and disabled homeowners.

However, these vary by municipality.

bulletSouth Carolina

This state offers a homestead exemption for homeowners who are totally and permanently disabled (as recognized by a state or federal agency).

Legally blind homeowners are also eligible for this exemption.

If you qualify, then you are exempt from the property taxes on the first $50,000 in assessed home value.

Veterans who are 100% disabled due to service are fully exempt from property taxes up to one acre.

bulletSouth Dakota

South Dakota offers various property tax relief programs for disabled veterans, paraplegic veterans, and nonmilitary veterans.

Fully disabled vets can be exempt from all taxes up to $150,000 in assessed value.

Nonmilitary disabled homeowners may see a tax reduction between 16 to 55 percent depending on their income.

bulletTennessee

Exemptions exist in this state for both veterans and nonmilitary homeowners who are disabled.

Exemptions go up to $28,300 for nonmilitary, disabled homeowners.

Disabled veterans are eligible for exemptions up to $175,000.

However, they must have been honorably discharged and rated totally/permanently disabled by the VA.

bulletTexas

Exemptions are available for both disabled veterans and nonmilitary homeowners.

Disabled vets received between $5,000 and $12,000 depending on their disability rating.

They’re also eligible for the general homestead exemption and the senior citizen exemption if they’re age 65 or older.

For nonmilitary, disabled homeowners, the exemption is $10,000.

However, in order to qualify, the homeowner must be eligible to receive disability insurance benefits.

bulletUtah

Disabled veterans who are at least 10 percent disabled can receive property tax relief in Utah.

Vets are exempt based on their disability for an amount of up to $271,736.

Blind homeowners also have a property tax exemption, which reduces the property’s taxable value by up to $11,500.

bulletVermont

Vermont has property tax exemptions for disabled veterans if they have at least a 50% disability, a non-service-related pension, or permanent medical military retirement pay.

The exemptions range from $10,000 to $40,000.

However, there’s no exemption or property tax relief options for disabled, nonmilitary homeowners.

bulletVirginia

Virginia fully exempts 100 percent disabled veterans from all property taxes if the disability is service-related.

However, there’s no exemption for disabled, nonmilitary homeowners.

bulletWashington

Washington state has property tax exemptions for disabled residents and veterans who are 80 or more percent disabled.

In both programs, the homeowner must have a household income worth $40,000 or less and be unable to worth due to their condition.

bulletWashington, D.C

Property tax exemptions in D.C. exist for disabled nonmilitary homeowners and veterans.

If a disabled resident lives in a co-op and owns 50 percent of the property, then they may also be eligible.

bulletWest Virginia

Totally disabled homeowners are eligible for a tax exemption that lowers the property’s assessed value by $20,000.

To qualify, the homeowner must have been a resident for at least three years.

Disabled vets are eligible for a state homestead exemption.

This option also offers a $20,000 exemption, and the veteran must be 100 percent disabled due to their military service.

bulletWisconsin

Wisconsin doesn’t have property taxes exemptions for disabled homeowners.

However, it does have a tax credit for disabled veterans who are 100 percent disabled due to military service.

The tax credit varies based on the homeowner’s total property tax bill.

bulletWyoming

Wyoming offers property tax exemptions for disabled veterans.

This exemption lowers the home’s assessed value by $3,000.

To qualify, the veteran must be a resident of the state for three years.

There’s no exemption for disabled, nonmilitary homeowners.

Final thoughts

Unfortunately, most disabled individuals don’t understand the benefits available to them.

Do you?

We hope the information above has deepened your knowledge of property tax exemption for the disabled.

Additional Resources

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Disclaimer: we are not lawyers, accountants or financial advisors and the information in this article is for informational purposes only. This article is based on our own research and experience and we do our best to keep it accurate and up-to-date, but it may contain errors. Please be sure to consult a legal or financial professional before making any investment decisions.

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