Arizona Disabled Veteran Property Tax Exemption Guide (2026)

Arizona's disabled veteran property tax exemption can wipe out the property tax on a veteran's primary residence entirely when the VA rates the disability 100 percent service-connected. A surviving spouse who stays in the home can keep that full exemption, and veterans rated below 100 percent still get a partial exemption. This guide walks through who qualifies, how much the exemption is worth, the income limit, and how to file the affidavit with your county assessor.

In This Guide

• Key Takeaways
• Do You Qualify for Arizona's Disabled Veteran Property Tax Exemption?
• How Much Is the Disabled Veteran Property Tax Exemption in Arizona?
• What About the Income Limit?
• What About a Surviving Spouse?
• How to Apply
• How It Works With Your VA Benefits
• Is This the Same as Senior Property Tax Relief?
• Frequently Asked Questions
• Learn More

Do You Qualify for Arizona's Disabled Veteran Property Tax Exemption?

Arizona's disabled veteran property tax exemption is a state benefit written into A.R.S. § 42-11111 and administered by the county assessors, not by the federal government. It's a separate program from the VA's disability compensation and pension.1 To claim it you need to be an Arizona resident, own and live in the home as your primary residence, and have a disability rating from the U.S. Department of Veterans Affairs. Some veterans search for this as an "Arizona veteran homestead exemption," but the statute simply calls it the exemption for veterans with a disability.

Two things then decide what you receive: your VA disability rating and whether the disability is service-connected. Here's how the statute splits it:

• A veteran with a service-connected disability rated 100 percent by the VA has their primary residence fully exempt from property taxation.1
• A veteran with a service-connected disability rated below 100 percent, or a nonservice-connected disability rated 100 percent or less, gets a fixed exemption of $4,188, then reduced in proportion to the VA rating.1

There's also a household income test, covered below, that applies before the exemption is granted.1

How Much Is the Disabled Veteran Property Tax Exemption in Arizona?

For a 100 percent service-connected veteran, the answer is simple: the primary residence is fully exempt, so there's no property tax on it.1

For everyone else who qualifies, the exemption starts at $4,188 and is then multiplied by the VA disability percentage.1 The exemption reduces the taxable (assessed) value of your home, not your tax bill dollar for dollar, so the actual dollars you save depend on your local tax rate.

The $4,188 figure is not fixed. On or before December 31 each year the Arizona Department of Revenue increases it for inflation, so confirm the current-year figure with your county assessor when you file.1

One older wrinkle is worth clearing up. Arizona used to cap this benefit by the assessed value of the property. The Arizona Department of Revenue now says that assessed-value limitation applies only to widows and widowers and to people with a total and permanent disability, not to the veteran exemptions.1

What About the Income Limit?

The exemption carries a household income test, and it's the step that most often trips people up because it counts more than just the veteran's own income. The total income from all sources of the claimant, the claimant's spouse, and any of the claimant's children who lived in the home may not exceed $34,901 if none of the claimant's children under eighteen lived with them, or $41,870 if one or more children resided with the claimant.1 The figure is measured for the year immediately preceding the year you're claiming the exemption for, not the current one.1

Before you count yourself out, read what "income from all sources" actually means. It is a defined term, and the statute carves a great deal out of it. It does not include monies received from cash public assistance and relief, railroad retirement benefits, payments under the federal Social Security Act, payments under Arizona's unemployment insurance laws, payments from any veterans pensions, workers' compensation payments, loss of time insurance, or gifts from nongovernmental sources.1 Social Security and VA pension money therefore do not count toward the $34,901 and $41,870 limits at all.1

That single definition decides the case for a lot of Arizona households. A veteran whose income is mostly Social Security can add those deposits up, compare the total to $34,901, and conclude they're well over the line when the statute never counted that money in the first place.1 Add up only what remains after the carve-outs, and ask your county assessor how it treats any category you aren't sure about.

If what's left is over the limit, you won't qualify for that year even with a qualifying disability rating. Because the figures are set annually, verify the current thresholds with your county assessor before you assume you're over or under.1

What About a Surviving Spouse?

This is one of the most important parts of the program for families, and it's easy to miss. When a veteran whose property qualified for the exemption dies, the surviving spouse may continue to claim the full exemption.1 Two conditions keep it in place: the surviving spouse has to use the property as their primary residence, and they must not remarry.1

So a surviving spouse who stays in the home and doesn't remarry keeps the same tax relief the veteran had. If they sell and move, the exemption follows the eligibility rules for the new primary residence, and remarriage ends it.

How to Apply

You establish eligibility by filing an affidavit with your county assessor when you first claim the exemption, under A.R.S. § 42-11152.1 The Arizona Department of Revenue states that new exemption applications go to the county assessor during the annual window between the first Monday in January and March 1.1 A veteran already granted an exemption before January 1, 2026 does not have to reapply.1

How It Works With Your VA Benefits

The exemption is a state property-tax program, and it's separate from the federal VA benefits you may already receive. It lowers what your county taxes your home on; it is not a payment from the VA, and it is not the same transaction as your VA pension or Aid and Attendance. If you receive, or are applying for, a needs-based VA Pension or Aid and Attendance, which the VA assesses on income and net worth, confirm your own situation with an accredited representative.1

That matters because many older Arizona veterans stack benefits. In 2026, VA Aid and Attendance is a separate pension paid at a maximum annual rate of up to $29,093 for a single veteran with no dependents who needs help with daily activities (about $2,424 a month, the yearly award divided by 12), and more for a veteran with dependents; it also has its own wartime-service and financial rules.3

That $29,093 is a ceiling, not a payment. The VA sets the award on the difference between your income for VA purposes and the maximum rate that applies to you, so a veteran with countable income is paid the maximum less that income rather than the full amount.3 A household budgeting on the headline figure will be planning around money that never arrives.

The property-tax exemption cuts what you owe on your home; Aid and Attendance adds monthly income for care. The two are decided by different offices on different tests, so run your own numbers past a Veteran Benefits Counselor rather than assuming how they land together.2

If you're sorting through the full picture of VA support for care, our guide to VA benefits for senior care in Arizona covers home care, nursing homes, and the state veteran homes, and our Arizona Aid and Attendance guide walks through the pension application step by step.

Is This the Same as Senior Property Tax Relief?

No, and it's worth being clear about the difference. This exemption is for veterans with a service-connected or qualifying disability. Arizona has a separate, age-based program, the senior property valuation protection option, for homeowners 65 and older, with its own income rules and application.4 If you're not a disabled veteran but you're a senior homeowner, see our guide to Arizona senior property tax relief instead. A qualifying veteran who is also a senior has to choose: the statute provides that an individual is not entitled to exemptions under more than one category even if they are eligible for more than one, so ask the assessor which one leaves you with the smaller bill.1

Learn More

Find personalized help claiming Arizona's disabled veteran property tax exemption at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.