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Market Value Exclusion for Veterans with a Disability
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This market value exclusion program reduces the market value of the home for tax purposes, which may reduce your property tax. The program is administered by the counties.
There are two exclusion levels, $150,000 and $300,000, depending on your status:
| If you Are a |
With a |
You may qualify for a market value exclusion of |
| Veteran |
100% permanent and total disability rating |
$300,000 |
| Veteran |
70% or greater service-connected disability rating |
$150,000 |
| Surviving spouse receiving dependency and indemnity compensation |
Veteran's disability status is not a factor |
$300,000 |
| Surviving spouse of a qualifying veteran or service member |
100% permanent and total disability rating |
$300,000 |
| Qualifying primary family caregiver of a veteran |
100% permanent and total disability rating |
$300,000 |
| Qualifying primary family caregiver of a veteran |
70% or greater service-connected disability |
$150,000 |
Qualifications
Qualifications are based on whether you are a veteran, surviving spouse, or primary family caregiver. The property must have a homestead classification.
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Veterans may qualify if they:
- Are honorably discharged from the United States armed forces
- Have a service-connected disability rating of 70% or higher
- Own and occupy a homesteaded property on December 31
A surviving spouse of a qualifying veteran may be eligible to continue receiving the exclusion if the:
- Veteran had a 100% permanent and total disability rating (may still qualify if veteran did not receive the exclusion before dying)
- Surviving spouse receives Dependency and Indemnity Compensation
- Veteran had a service-connected death while in active service
If all requirements are met, surviving spouses may qualify for $300,000 of market value exclusion until they remarry, transfer or dispose of the property. The spouse can have a one time sale of the property and still retain the exclusion.
Primary family caregivers may qualify if they:
- Are approved by the U.S. Department of Veteran Affairs as the primary family caregiver for an honorably discharged veteran with a service-connected disability of 70% or more
- Own and occupy a homestead property by December 31
The veteran that the primary family caregiver cares for cannot also own homestead property by December 31.
How to Apply
Apply to your county assessor's office by December 31 to qualify for taxes payable in the next year. Some manufactured homes are taxed in the same year their property is assessed. For these properties, apply as soon as possible. The property must already be receiving a homestead classification.
- Veterans must work with their veterans service officer to get their disability rating
- Surviving spouses must apply to continue to receive the exclusion
Information Needed to Apply
The information required depends on who is applying for the exclusion.
Qualifying veterans must provide:
- U.S. Government Form DD214 or other military discharge papers
- Documentation from the U.S. Department of Veteran Affairs (VA) verifying disability status
Note: The VA may also provide a letter that includes all required information (both discharge and disability).
Surviving spouses of veterans who had total (100%) and permanent disability must provide documentation describing their benefits as surviving spouses of veterans who were permanently and totally disabled.
Surviving spouses awarded Dependency and Indemnity Compensation must provide verification of Dependency and Indemnity Compensation.
Surviving spouses of service members who died while serving in active duty must provide:
- Verification of Dependent Indemnity Compensation or other benefit letters from the U.S. Department of Veterans Affairs, if requested by the assessor
- U.S. Government Form DD1300 or DD2064 for service members
- Verification of the veteran's date of death
Primary family care givers must provide:
- Certification that they qualify for benefits described under the Program of Comprehensive Assistance for Family Caregivers
- Information necessary to verify the discharge and disability status of the qualifying veteran
The veteran that the Primary Family Caregiver cares for cannot also own homestead property by December 31.
Does this exclusion apply to farms?
Yes. For agricultural homesteads, the value of the house, garage, and immediately surrounding one acre of land will qualify for the exclusion.
Can I get the regular homestead exclusion with this exclusion?
No. If a property qualifies for this market value exclusion, the property does not receive the regular residential homestead market value exclusion.
Questions?
Contact your county assessor.
For questions related to your disability and the forms that are required with the application, speak with your county veteran service officer.
