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Disabled Veteran Exemption — 40% Gate, 3% Yearly Growth

From a 40% disability, a slice of assessed value comes off the homestead — on the service-connected tier around $18,000-and-growing, because the statute escalates it 3% every year. The rise is automatic and built into the statute; the several-fold increase proposed in 2025 was not enacted.

Verified August 27, 2026

What this benefit is

From a 40% disability, a slice of assessed value comes off the homestead — on the service-connected tier around $18,000-and-growing, because the statute escalates it 3% every year. The rise is automatic and built into the statute; the several-fold increase proposed in 2025 was not enacted.

What it's worth: Assessed value off: the $15,000-class general tier or the $18,000-class service-connected tier, each escalated 3% yearly since enactment

  • The statute sets each year’s amount at 103% of the prior year’s, so the published base figures understate every later year.
  • Because the escalator compounds, there is no single correct dollar figure — the amount depends on the tax year. Your county assessor publishes the figure that applies to the year you are claiming for.
  • SB 387 (2025) would have raised the tiers to $60,000, $65,000 and $150,000. It remained in the Senate Committee on Finance and Revenue when the 2025 regular session adjourned and did not pass, so the escalated statutory figures are still the operative ones.

Who is entitled to it

  • You are certified as 40% or more disabled.
  • The exemption runs against your homestead.
  • Your home is in Oregon.

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: April 1
  1. 1File the claim with your county assessor by April 1, with the certification showing 40% or more.
  2. 2Claim the service-connected tier where it applies — it is the larger of the two.
  3. 3Ask the assessor for the figure that applies to your tax year. The statute compounds the exemption 3% a year, so any fixed amount you read elsewhere is stale by definition.
Form
Disabled veteran or surviving spouse exemption claim
File with
Your county assessor
Documents you will need
va benefit summary letter
No renewal
Once granted it does not need renewing.
Worth knowingThe 3% escalator is in the statute itself — each year’s exemption equals 103% of the prior year’s — so any fixed dollar figure you read is stale by definition. The 40% gate is among the lowest in this corpus.
Worth knowingThe surviving spouse routes differ by tier: the general tier reaches any unmarried surviving spouse of a veteran; the service-connected tier asks that the veteran died of the service-connected cause or had held the exemption.
Known gapOregon runs its own state veteran home loan program through ODVA — one of five states with one. It is real, large and unread, and sits in the candidates rather than being published from a summary.

Sources

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