Property Tax Exemption Veterans Arizona – Arizona offers valuable property tax relief to honorably discharged veterans with service-connected or non-service-connected disabilities. Recent legislation has significantly expanded benefits, particularly for those rated 100% disabled by the U.S. Department of Veterans Affairs (VA). This guide explains the property tax exemption veterans Arizona program for tax year 2026, including eligibility, amounts, application steps, and how surviving spouses can benefit.
All information is current as of April 2026 and drawn from official county assessors and state law (A.R.S. § 42-11111). Rules are administered at the county level, so always verify with your local county assessor’s office.
Who Qualifies for the Arizona Veterans Property Tax Exemption?
To qualify for any Arizona veterans property tax exemption, you must meet these core requirements:
- Be an Arizona resident.
- Have received an honorable discharge from active or reserve U.S. Armed Forces service.
- Own (or have ownership interest in) the property as your primary residence.
- Have a VA disability rating (service-connected or non-service-connected).
The exemption applies only to your primary residence and cannot be combined with other personal exemptions (such as widow/widower or total permanent disability).
Full Property Tax Exemption for 100% Service-Connected Disabled Veterans
In February 2026, Governor Katie Hobbs signed HB 2792, creating a full property tax exemption for qualifying veterans. This is the biggest recent change to property tax exemption veterans Arizona.
Key benefits under the new law (effective tax year 2026):
- 100% exemption on the entire assessed value of your primary residence.
- No previous property value cap (previously around $31,000–$36,000 assessed value).
- Applies even if the home is jointly owned.
- Benefits appear on 2026 property tax bills (due October 2026).
Eligibility specifics:
- Must have a combined service-connected VA disability rating of 100% (shown on your VA Benefits Summary Letter).
- Income limits still apply (see below).
- Must be honorably discharged.
This full exemption replaces the old partial calculation for 100% service-connected veterans.
Partial Property Tax Exemption for Veterans with Lower Disability Ratings
Veterans who do not qualify for the full 100% exemption may still receive substantial relief:
- Base exemption amount for 2026: $4,873 of assessed limited property value (LPV).
- Multiply by your VA disability percentage (e.g., 50% disability = $2,436.50 exemption).
- Further multiplied by your percentage of ownership in the property.
- The exemption reduces your taxable assessed value and can be applied first to real property, then to any mobile home or vehicle registration if needed.
This partial exemption applies to:
- Service-connected disabilities rated 1%–99%.
- Non-service-connected disabilities rated 1%–100%.
How Surviving Spouses Can Continue the Exemption?
Unremarried surviving spouses of qualifying veterans can keep the exemption:
- For a 100% service-connected veteran’s full exemption: Continues on the primary residence (even if the spouse moves to a new primary residence in Arizona).
- For partial exemptions: Surviving spouses may qualify under widow/widower rules if they meet income and other criteria.
- Must not remarry and must maintain Arizona residency.
Income Limits and Assessed Value Requirements (2026)
Income limits apply to all categories, including the new full 100% exemption. Household income is calculated excluding:
- Social Security benefits
- Military pensions
- Veterans’ disability payments
2026 Income Limits:
- No children under 18 living in the home: Total household income ≤ $39,865.
- With children under 18 or disabled dependents: Total household income ≤ $47,826.
Assessed Value Limit (for partial exemptions only):
- Total assessed value of all your Arizona property generally cannot exceed approximately $36,865 (exact figure set annually by the Arizona Department of Revenue; confirm with your county).
The new full exemption for 100% service-connected veterans removed the prior value cap.
Step-by-Step: How to Apply for Veterans Property Tax Exemption in Arizona?
Applications are filed with the County Assessor’s Office in the county where the property is located. Most counties accept applications from January through early March each year.
- Download or obtain Form DOR 82514V (Affidavit of Individual Tax Exemption for Veterans).
- Gather all required documents (see next section).
- Submit the completed affidavit and supporting documents by the county deadline.
- First-time applicants often must file in person; renewals may be accepted by mail, online, or email in many counties.
- The assessor reviews and approves (or requests more information).
Exemption is generally granted for the current tax year if filed on time. Report any changes (marriage, income change, move, death) immediately to avoid penalties.
Required Documents for the Application
Typical documents include:
- Completed DOR 82514V affidavit.
- Most recent VA Benefits Summary Letter (or award letter) showing disability rating and percentage.
- Copy of prior year’s Arizona income tax return (Form 140) for income verification.
- Proof of Arizona residency (driver’s license, utility bills, etc.).
- Proof of property ownership (deed, title, or tax bill).
- DD-214 (honorable discharge papers) if not previously provided.
- For surviving spouses: Copy of spouse’s death certificate.
Some counties allow online portals or email submission. Contact your specific county assessor for exact instructions.
Important Deadlines for 2026
- Standard filing window: Early January to late February/early March 2026 (exact dates vary by county — e.g., Cochise County: January 2 to March 1; Maricopa often by February 28).
- Late applications may qualify with an approved waiver (typically until September 1).
- Exemption applies to the tax year filed for; it is not retroactive.
Frequently Asked Questions About Arizona Veterans Property Tax Exemption
Does the exemption apply to the full market value or assessed value?
It reduces the assessed limited property value (the taxable portion).
Can I get the exemption if I own the home jointly with my spouse?
Yes — the full 100% exemption applies to the entire primary residence even if jointly owned.
Are VA disability payments counted toward income limits?
No — they are explicitly excluded.
Do I need to reapply every year?
Once approved, the exemption usually continues automatically unless your situation changes. Counties may request periodic verification.
What if my income is slightly over the limit?
You do not qualify that year. Pending legislation may raise limits in future years, but 2026 uses the current thresholds.
Additional Resources and Next Steps
- Find your county assessor: Search “[Your County] Arizona Assessor Property Tax Exemption” or visit azdor.gov for links.
- Arizona Department of Veterans’ Services (ADVS): dvs.az.gov — assistance with benefits.
- VA Benefits Summary Letter: Download instantly at va.gov.
- Official forms: azdor.gov (search DOR 82514V and 82514B).
Arizona’s property tax exemption for veterans provides meaningful relief, especially with the 2026 expansion for 100% disabled veterans. Don’t miss out — contact your county assessor today to see if you qualify and file before the deadline.
For personalized help, reach out to your local county assessor’s office or a veterans service officer. This program is one of many ways Arizona supports its veterans and their families. Stay informed, as income limits and exemption amounts adjust annually.