VA Property Tax Exemptions by State | VA Loan Benefits
A VA loan for eligible Veterans has exceptional benefits and often states have VA property tax exemptions. In some states, service-connected disabled veterans have the option of applying for property tax breaks. It pays to look into the qualifying criteria and options your state has for discounts on property taxes – some states even offer Veterans a 100% exemption for property tax bills.
How much you can save on your tax bill can depend on:
- VA disability rating.
- Rather than your status as a veteran.
- The state the property is located in.
- Occupancy type.
- Other factors.
You may be required to annually re-certify or only register once depending on your state. There are other benefits to VA loans besides VA property tax exemptions.
VA Loan Benefits
Eligible Veteran home buyers are not required to have a down payment in some cases, which is one of the greatest benefits of a VA loan. There are other options for home loans with low down payments, but the VA loan has no monthly mortgage insurance.
A seller can credit the veteran of up to 4% seller concession with a VA loan. Even though a VA mortgage allows 100% financing, people often forget that there are other costs that are associated with the loan like title and recording fees, setting up an escrow account, and other costs.
VA loans typically have more competitive interest rates than other types of loans.
Refinance VA Loan Benefits
If you are a Veteran, you may be eligible for one of the simplest and beneficial refinance programs called a VA IRRRL refinance with no appraisal or minimum credit score. VA loans allow up to 100% cash out and debt consolidation.
Disabled Veteran’s Property Tax Exemption by State
It is important to know about your opportunities as a Veteran when it comes to tax breaks – that is if you want to save money. VA property tax exemptions can change so it is important to discuss and stay abreast with new opportunities to save money.
California VA Property Tax Exemptions
For honorably discharged veterans, spouse or pensioned-parents of the deceased:
- $4,000 real property or personal property exemption by the California Constitution.
Disabled Veterans exemption:
- Depending on income, there is a basic $100,000 or $150,000 exemption available.
There are limitations when applying in California for these exemptions.
Colorado VA Property Tax Exemptions
For disabled Veterans who qualify:
- 50% of the first $200,000 in actual value for a primary residence.
The procedure in Colorado requires disabled veterans to submit an application to the Division of Veterans affairs. This should be done between January 1st and July 1st of the qualifying year.
Florida Property Tax Exemptions
In Florida, the exemption depends on certain requirements. An ex-service member who is honorably discharged who is disabled 10% is eligible to a $5,000 reduction in the assessed value of the property.
A permanently disabled Veteran is eligible for a total exemption from taxes. Other requirements allow Veterans to get a discount on their taxes. To see if you are eligible, you should go to Florida’s Department of Revenue’s website.
Georgia Property Tax Exemptions
Disabled Veterans or surviving spouse are eligible for an exemption in Georgia of $60,000 plus from paying property taxes. The exemption depends on an index rate set by the United States Secretary of Veteran’s Affairs.
Illinois VA Property Tax Exemptions
For returning Veterans:
- There is a $5,000 reduction to returning Veterans equalized assessed value.
Returning veterans from active duty in armed conflict involving the U.S. armed forces can apply upon their return. To apply for Returning Veterans’ Homestead exemption in Illinois, a Veteran would have to contact or visit a local County Assessor’s office.
Standard Homestead Exemption for Disabled Veterans:
For a disabled veteran, the Standard Homestead Exemption applies a reduction in the property’s EAV to qualified Veterans with service related disabilities. Beginning in 2015 tax year:
- For a veteran with a service related disability of at least 30%, a $2,500 homestead exemption is available.
- A VA property tax exemption (homestead exemption) is available of $5,000 to Veterans with a service related disability of at least 50%.
- Veterans who have a service-connected disability of at least 70% are exempt from paying property taxes.
This is also available to surviving spouses under circumstances. Veterans must be approved for this exemption and file annual applications by their counties deadline. In order to apply in Illinois, a Veteran would have to contact or visit a local County Assessor’s office.
Indiana Disabled Veteran Property Tax Deductions
- In World War II from December 7, 1941 to December 31, 1946.
- Korea from June 27, 1950 to January 31, 1955.
- Vietnam from August 5, 1964 to May 7 1975.
- Gulf War from August 2, 1990 to a date in the future that is set by law or Presidential Proclamation.
Veterans also may be eligible for property tax deductions if they have:
- A total service connected disability or at the least the age of sixty two with a connected service disability rating of 10%.
- They may also receive a deduction with a service connected disability rating of at least 50%.
Minnesota Market Value Exclusion for Veterans
Veterans, surviving spouses, and qualifying primary family caregivers may be eligible for a VA property tax exemption of up to $300,000. The market value exclusion depends on:
- If you are a Veteran, surviving spouse, or qualifying primary caregiver.
- Permanent, service connected disability, and total disability rating.
Qualifications and how to apply can be found on Minnesota’s department of revenue website.
Tennessee Property Tax Relief
Texas VA Property Tax Exemption
The exemption depends on the disability rating. The amount is as follows:
- $5,000 from the property value if 10% to 29% disabled.
- $7,500 from the property value if 30% to 49% disabled.
- $10,000 from the property value if 50% to 69% disabled.
- $12,000 from the property value if 70% to 100% disabled.
You can apply for a tax exemption in Texas by going to the TexVet website.
Virginia VA Property Tax Exemption
Virginia’s real estate tax exemption allows 100% service connected, permanent and totally disabled veterans or surviving spouse to be granted exemption from taxes when the application is approved.
Washington VA Property Tax Exemptions
In order to get property tax relief in Washington, you should contact your County Assessor to determine how much you can save. Applicants with service-connected disability rating may qualify for relief on their property tax bill for primary residences.
Wisconsin Property Tax Credit
Wisconsin’s property tax credits are available eligible Veterans and surviving spouses up to one acre of land, which is administered by the Wisconsin Department of Revenue through state income tax returns.
Information, instructions and requests forms can be found on the state of Wisconsin Department of Veterans Affairs website – they provide an information and application booklet. Applicants can also contact their local County Veterans Service Office.
You can find if your state has opportunities to save money on taxes by going to the state or county website. Often these are listed on the state’s Department of Revenue site.