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Eligible Funds Exemption
The oldest of the three: an exemption for property bought with pension, bonus or insurance money received because of military service. Up to $7,500 of assessed value.
Verified August 18, 2026
What this benefit is
The oldest of the three: an exemption for property bought with pension, bonus or insurance money received because of military service. Up to $7,500 of assessed value.
What it's worth: Up to $7,500 off assessed value
- The exemption equals the eligible funds used, capped at $7,500 of assessed value.
- You cannot hold this and the Alternative exemption on the same property. Most veterans are better off with the Alternative one, and §458(7) lets you switch.
Who is entitled to it
- You served in the U.S. armed forces.
- You bought the property with eligible funds — pension, bonus, insurance or prisoner-of-war compensation received because of your service.
- Your locality offers this exemption.
- Your home is in New York.
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: March 1 in most towns — taxable status date- 1Work out whether the Alternative exemption is worth more to you first — it usually is, and you cannot hold both.
- 2If Eligible Funds is the right one, file form RP-458 with your assessor with evidence of the funds used.
- Form
- RP-458
- File with
- Your town, city or village assessor
- Documents you will need
- dd214 ny · proof of eligible funds
- Stays in place once granted
- Tell the assessor when your rating changes — the disability portion moves with it.
Worth knowingThis is a survival from an older system and is now the smallest of the three. It matters mainly to veterans who have held it for decades and would be better off switching to the Alternative exemption — §458(7) permits that, and nobody tells them.
Sources
- authority · statuteN.Y. Real Prop. Tax Law §458
- operating · published policyNYS Department of Veterans’ Services — Property Tax Exemptions
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.