Disabled Veterans Property Tax Relief

Disabled veterans are currently entitled to residential property tax relief measures in all 50 states; however, the qualifications and scope of relief vary greatly from state to state. Note: All provisions discussed in this article refer to the primary residence of a disabled veteran.

Veterans Administration Disability Ratings

Typically, state or local laws require a person to be designated by the U.S. Department of Veterans Affairs (VA) as having some sort of compensable service-connected disability. In other words, the disability must be connected to the person’s service in a branch of the U.S. military and must also meet the threshold for disability compensation. For veterans under the care of the VA, their service-connected disability or disabilities are assigned a rating, with 10 percent being the lowest rating. Disability ratings may then be combined up to a maximum total of 100 percent. For additional information on disability ratings and compensation, please visit the VA’s website.

State Qualifications—Disability Rating-only

In the majority of states, disabled veterans may receive a residential property tax benefit regardless of income or property valuation.

100 Percent Disability-only

A total of 27 states offer either a complete or partial exemption of residential property taxes for primary residences of veterans with a 100 percent disability rating-only.

Less than 100 Percent Disability

In 11 states, persons with less than a 100 percent disability rating may receive an exemption of a portion of the taxable value of their primary residence, resulting in a lower amount of residential property taxes due. In many of these states, the exemption is proportional to disability rating. The exemption threshold also varies greatly, with some states providing some benefit at 10 percent disability and others having minimum thresholds between 40 to 90 percent.

Other Qualifications and Specific Benefits

Delaware offers full exemption from school district residential property taxes for 100 percent disabled veterans. In Hawaii, county laws and ordinances govern residential property tax, with some counties granting a 100 percent exemption to certain disabled veterans, with a minimum tax due of $150 in each county. Idaho law provides a $1,500 credit toward residential property taxes for persons with a 100 percent disability rating. Missouri provides a 100 percent exemption for veterans who have a 100 percent disability rating and who were also a prisoner of war.

State Qualifications—Income or Valuation Threshold

In eight states, residential property tax benefits for disabled veterans are only extended to those who meet certain income thresholds or whose primary residence is valued under a certain amount for taxing purposes.

Current Kansas Benefits

The state Senior or Disabled Veteran program, enacted in 2022, is available to Kansas residents who, for the entire year:

• Owned and occupied a home in Kansas;
• Were 65 years or older or a disabled veteran with a 50 percent or greater permanent disability rating; and
• Had a household income at or below the threshold for eligibility, which was $53,600 in 2023.

If the home’s value did not exceed $350,000 in their base year, the taxpayer can receive a refund in the amount of the difference between the current year and base year tax amount, with the base year being the first year the taxpayer was eligible for the program.

Veterans’ Valor Property Tax Relief Act—2024 HB 2096

HB 2096 (2024) would have enacted the Veterans’ Valor Property Tax Relief Act, which would have created a refundable income tax credit for veterans with a 100 percent permanent disability or unemployable rating by the VA. The credit would have refunded 75 percent of the property and ad valorem taxes paid on the residential property of such veteran. Taxpayers receiving the credit would have been prohibited from receiving certain other property tax relief credits and would not have been subject to income or valuation requirements. HB 2096 included other tax provisions and was vetoed by the Governor. The Legislature did not make a motion to override the veto.