What property tax benefits are there for veterans of the US military?

Each week, Mansion Global poses a tax question to real estate tax lawyers. Here is this week’s question.

Q. What types of property tax breaks are available to US veterans?

A. Veterans of the United States Army, especially disabled veterans, may qualify for property tax relief in most municipalities.

Take New York State, where there are three different types of tax exemptions for veterans who have served in the U.S. Army, Navy, Air Force, Marines, and Coast Guard.

The alternative veteran exemption is available for those who served in wartime, according to the state’s website. These owners are entitled to a 15% reduction in the assessed value of their home. Veterans who have served in combat zones are entitled to an additional 10% reduction in assessment, and there are other service-related disability benefits.

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New York also has a property tax benefit for those who were in service during the Cold War (a 10% to 15% reduction in assessed value), depending on the state. In addition, there is a “qualifying funds exemption,” which can reduce a home’s valuation, typically up to $ 7,500, if a home is purchased with qualifying funds received upon release from active duty, including pensions, bonuses or other compensation.

In Illinois, there are exemptions for veterans at the state level, including the Returning Veterans’ Homestead Exemption, which gives veterans a one-time reduction of $ 5,000 on their home valuation, according to the state website. Eligible veterans who returned from active service in an armed conflict may apply for the benefit.

Homestead exemptions, further reducing the assessed value of a home, are available for veterans with disabilities. Those injured in the line of duty are entitled to a reduction of at least $ 2,500. The amount increases according to the degree of disability. Veterans with a service-related disability of at least 70%, as determined by the state, are exempt from property tax on their primary residence, according to the state.

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There is no income threshold for the exemption, which sparked some controversy last month when the Chicago Sun-Times reported that Senator Tammy Duckworth, who lost her legs in battle, is claiming the advantage. The story was picked up by several national media.

Other states, such as California, have a low income standard and exemption for disabled veterans who meet the criteria. There, a former serviceman considered to be totally disabled is entitled to a $ 100,000 reduction in the estimated value of his home, according to the state’s website. A veteran with an income of $ 52,470 or less can claim a benefit of $ 150,000.

There are several states that waive property tax for 100% disabled veterans, including Florida, Texas, Virginia, New Mexico, and Hawaii. These exemptions only apply to primary residences, and not to secondary or vacation residences. Often, a surviving spouse who has not remarried is also eligible for benefits.

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