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Standard Homestead Exemption for Veterans with Disabilities — and Four Routes That Are Not About Bands

Three plain bands: $2,500 off at 30%, $5,000 at 50%, and the first $250,000 of equalized assessed value exempt at 70% — which for most Illinois homes is the whole bill. Beyond the bands: a WWII veteran's property is exempt regardless of disability level from tax year 2024; an unremarried surviving spouse may continue the exemption and carry it to a new home on selling; and the unremarried surviving spouse of a veteran killed in the line of duty, or one certified by the USDVA as receiving DIC for a service-connected death, receives the full exemption even if the veteran never held it.

Verified August 27, 2026

What this benefit is

Three plain bands: $2,500 off at 30%, $5,000 at 50%, and the first $250,000 of equalized assessed value exempt at 70% — which for most Illinois homes is the whole bill. Beyond the bands: a WWII veteran's property is exempt regardless of disability level from tax year 2024; an unremarried surviving spouse may continue the exemption and carry it to a new home on selling; and the unremarried surviving spouse of a veteran killed in the line of duty, or one certified by the USDVA as receiving DIC for a service-connected death, receives the full exemption even if the veteran never held it.

What it's worth: $2,500 at 30–49%, $5,000 at 50–69%, and the first $250,000 of EAV exempt at 70%+

  • The bands are on equalized assessed value, not market value. Illinois assesses most property at one third of market value, so $250,000 of EAV is roughly a $750,000 home.
  • At 70% or more the exemption is capped at $250,000 of EAV rather than being unlimited — for a home above that, tax is still owed on the excess.
  • For tax years on or after 2024, a World War II veteran's property is exempt from taxation regardless of disability level.
  • An unremarried surviving spouse may continue the exemption on the veteran's primary residence and, after selling it, transfer the exemption to a new primary residence.
  • Since tax year 2015, the unremarried surviving spouse of a veteran killed in the line of duty receives a 100% EAV reduction even where the veteran never held the exemption.
  • Since tax year 2023, a surviving spouse certified by the USDVA as receiving dependency and indemnity compensation for a service-connected death qualifies for the full exemption, again whether or not the veteran ever obtained it.

Who is entitled to it

  • You served in the U.S. armed forces.
  • You own or lease the home and occupy it as your primary residence.
  • Your rating is at least 30%, which opens the lowest band.
  • Your home is in Illinois.

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: Renewal typically due October 1
  1. 1Get a VA letter certifying your current service-connected percentage — the band you land in is decided by that number.
  2. 2File PTAX-342 with your Chief County Assessment Officer.
  3. 3Diarise the renewal. PTAX-342-R comes annually and missing it costs the whole year.
  4. 4If your rating changes, tell the office. Moving from 69% to 70% is the difference between $5,000 off and the first $250,000 of EAV coming off.
Form
PTAX-342
File with
Your Chief County Assessment Officer
Documents you will need
va benefit summary letter · dd214 · proof of ownership or lease
Re-file every year
This is the mistake that costs Illinois veterans the most. The exemption does NOT roll over — the assessment office mails a PTAX-342-R renewal each year and it must be returned.
Worth knowingThe 70% band is a cliff worth watching. At 69% the exemption is $5,000 of EAV; at 70% it is the first $250,000 of EAV. Nothing else in this corpus has a step that large between adjacent ratings.
Worth knowingIllinois is unusual in extending the exemption to a veteran who LEASES a single-family residence and is liable for the property tax under the lease. Most states require ownership.
Worth knowingAn unmarried surviving spouse may continue the exemption and may transfer it to a new primary residence — the transfer right is rare and is often not mentioned when a spouse is deciding whether to move.

Sources

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