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Disabled Veteran Property Tax Exemption — Fully Exempt at 100% from 2026

From tax year 2026 the property of a veteran with a 100% service-connected rating is exempt from taxation in full under A.R.S. 42-11111(C). Below 100%, the dollar exemption is multiplied by the disability percentage. The income limits apply either way — including to the 100% tier, which is the part most people assume is unconditional. The 2026 exemption amount is $4,873, with income limits of $39,865 and $47,826.

Verified August 27, 2026

What this benefit is

From tax year 2026 the property of a veteran with a 100% service-connected rating is exempt from taxation in full under A.R.S. 42-11111(C). Below 100%, the dollar exemption is multiplied by the disability percentage. The income limits apply either way — including to the 100% tier, which is the part most people assume is unconditional. The 2026 exemption amount is $4,873, with income limits of $39,865 and $47,826.

What it's worth: Full exemption at a 100% rating; below that, $4,873 for 2026 multiplied by the disability percentage

  • From tax year 2026, A.R.S. 42-11111(C) exempts in full the property of a veteran with a 100% service-connected VA rating.
  • The income limits still apply to every applicant, the 100% tier included. A full exemption is not an unconditional one.
  • Eligibility turns on the COMBINED rating, not on the compensation level. A veteran paid at the 100% rate through Individual Unemployability, with a lower combined rating, does not qualify — the county assessor's guidance is explicit about this and it is the most common way people are refused.
  • An honorable discharge is required.
  • Below 100%, and for nonservice-connected disability, subsection D gives the dollar exemption multiplied by the disability percentage.
  • The certified 2026 figures are an exemption of $4,873 and income limits of $39,865 and $47,826. The statutory bases — $4,188, $34,901 and $41,870 — are indexed annually, which is why the certified figures run above them.
  • The total-assessment cap belongs to the widow, widower and totally-disabled category under subsection E. It does not apply to the veteran category.
  • We do not hold Arizona county tax rates, so we cannot convert the exemption into a dollar saving for your county.

Who is entitled to it

  • You served in the U.S. armed forces.
  • You have a VA service-connected disability.
  • You own and occupy the home as your principal residence.
  • Your home is in Arizona.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: February 28 (September 1 only with an approved waiver)
  1. 1File by February 28. The record previously said March 1; the statutory date is February 28, and a waiver can push it to September 1 only if the assessor approves one.
  2. 2Take a VA letter showing your COMBINED rating, not your compensation rate. If you are paid at the 100% rate through Individual Unemployability but your combined rating is lower, the assessor will refuse the full-exemption tier.
  3. 3Bring the income figures. The limits apply to every applicant, including a veteran rated 100%, and the exemption is refused without them.
  4. 4Ask what happens if your rating or occupancy changes — that is what ends most granted reliefs.
Form
Affidavit of Individual Tax Exemption
File with
Your county assessor
Documents you will need
va benefit summary letter · dd214
Re-file every year
Entitlement is retested annually. Missing a year costs that year.
CorrectionThis record described Arizona's relief as modest and small next to its neighbours. From tax year 2026 a veteran rated 100% service-connected is fully exempt under A.R.S. 42-11111(C). The figures it declined to publish are also public: $4,873 for 2026, with income limits of $39,865 and $47,826.
Worth knowingArizona's relief is an exemption of ASSESSED value, and Arizona assesses residential property at a small fraction of market value. Read the figure against your assessed value, not your home's price.
Worth knowingThe 100% tier turns on the combined rating. Individual Unemployability pays at the 100% rate without necessarily carrying a 100% combined rating, and the assessor applies the rating rather than the pay rate.

Sources

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.