If you are a 70% or 100% disabled veteran, the state you live in can be worth tens of thousands of dollars over a decade. The biggest driver is the property-tax exemption — a handful of states zero out the property tax on your primary home if you have a high enough VA rating. This guide ranks the best states for veterans at the 70% and 100% disability tiers in 2026.
Below we cover the rules state by state. The short version: Texas, Florida, New Jersey, Virginia, Maryland, South Carolina, and Iowa offer a full property-tax exemption at 100% service-connected disability or 100% P&T. At 70%, the strongest single program is Illinois — a veteran with a 70% or higher rating gets a 100% homestead exemption on a primary residence.
How property-tax exemptions for disabled veterans actually work
Almost every state offers some kind of property-tax break to disabled veterans, but the details vary in three ways:
- Rating threshold. Some states require 100% or Permanent & Total (P&T). Others scale relief by rating starting at 10% or 30%.
- Exemption type. A full exemption wipes out property tax on a primary residence. A partial exemption reduces the assessed value or freezes the tax bill at a baseline.
- Surviving-spouse continuation. A few states let an unremarried surviving spouse keep the exemption — Texas, Florida, Virginia, New Jersey, and South Carolina all do.
Read the rating bands carefully. A program that gives a 100% exemption at 70%+ (like Illinois) is much more valuable than one that only kicks in at 100% P&T.
Best states for 100% disabled veterans (2026)
These states offer a full property-tax exemption on a primary residence for veterans rated 100% service-connected or 100% Permanent & Total. Listed roughly in order of overall benefit strength when combining tax relief, tuition support, income-tax treatment of military retirement, and ease of qualifying.
1. Texas — full homestead exemption + Hazlewood for kids
A veteran rated 100% disabled by the VA receives a total exemption from property tax on their homestead. The exemption transfers to an unremarried surviving spouse. Texas has no state income tax, so military retirement pay is also untaxed. The Hazlewood Act adds up to 150 credit hours of tuition for the veteran or — through the Legacy program — for a child.
2. Florida — full homestead exemption at 100% P&T
Florida grants a full ad valorem property-tax exemption to veterans who are 100% disabled from a service-connected cause. There is no state income tax. Lower disability ratings receive a smaller, flat $5,000 reduction in assessed value — useful but a fraction of the 100% benefit.
3. New Jersey — full property-tax exemption at 100% P&T
Since voters approved Public Question 2 in 2020, New Jersey extends a 100% property-tax exemption to all 100% P&T veterans regardless of where they served — the wartime-service requirement was removed. In a high-property-tax state, this is one of the most valuable benefits in the country, often worth $8,000+ per year.
4. Virginia — full real-estate tax exemption + retirement subtraction
Virginia exempts the real-estate tax on a primary residence for 100% service-connected veterans (and unremarried surviving spouses). Starting with tax year 2025, Virginia also allows a subtraction of up to $40,000 of qualifying military retirement income — a separate benefit that compounds the value of staying.
5. Maryland — full property-tax exemption
Maryland exempts the dwelling and surrounding lot of a 100% service-connected disabled veteran from real-estate tax. The exemption continues for the surviving spouse. Maryland also exempts the first $20,000 of military retirement pay from state income tax for veterans 55 and older (and $12,500 for those under 55).
6. South Carolina — full property-tax exemption
South Carolina exempts the home and up to one acre of land of a 100% disabled veteran from property tax. Military retirement is fully exempt from state income tax as of 2022. The exemption transfers to the unremarried surviving spouse.
7. Iowa — full homestead exemption at 100% P&T
Iowa offers a full property-tax exemption on the homestead of a veteran rated 100% P&T (or with individual unemployability). Iowa also phased out state taxation of military retirement pay starting in 2014.
8. Oklahoma — full ad valorem exemption
Oklahoma exempts 100% disabled veterans from property tax on their homestead. Sales-tax exemption is also available on up to a certain amount of purchases each year for qualifying disabled veterans.
9. Michigan — full property-tax exemption
Michigan exempts 100% disabled veterans (or veterans rated permanently and totally disabled by the VA, or who receive specially adapted housing benefits) from property tax on their primary residence. Surviving spouses can continue the exemption.
10. Pennsylvania — full real-estate tax exemption
Pennsylvania exempts the primary residence of a 100% disabled veteran from real-estate tax. Eligibility includes a financial-need component that the County Director of Veterans' Affairs reviews — most disabled veterans qualify, but it is not automatic.
11. New Hampshire — full exemption for paraplegic / specially adapted
New Hampshire exempts 100% service-connected paraplegic veterans (and veterans with specially adapted housing) from property tax on their homestead. A separate tax credit of up to $4,000 is available to veterans with a total and permanent service-connected disability at the discretion of the municipality — many towns grant the full amount.
Best states for 70% disabled veterans (2026)
At 70%, the picture changes. Many of the full-exemption states above require 100% or P&T. The exceptions — states that give meaningful relief starting at 70% — are listed here.
1. Illinois — full homestead exemption at 70%+
Illinois is the standout for 70% disabled veterans. The Disabled Veterans' Standard Homestead Exemption reduces the assessed value of a primary residence on a sliding scale:
| VA rating | Exemption |
|---|---|
| 30% – 49% | $2,500 reduction in equalized assessed value |
| 50% – 69% | $5,000 reduction |
| 70% and above | 100% exemption from property tax |
A 70% disabled veteran in Illinois pays $0 in property tax on a primary residence — a benefit very few other states give at that tier.
2. Indiana — graduated property-tax deductions
Indiana stacks two property-tax deductions for disabled veterans. A service-connected disabled veteran with at least a 10% rating can claim a deduction; the amount increases with the rating, and there is a separate deduction for total disability or age 62 with at least a 10% rating. Combined, the deductions can shave a significant amount off assessed value for a 70%+ veteran, though not the full bill.
3. Nevada — sliding-scale exemption
Nevada's property-tax exemption for disabled veterans scales with the rating. At 100% the exemption applies to about $30,800 of assessed value (so roughly $108,000 of taxable property value). Lower tiers receive a proportional share. Nevada has no state income tax, so military retirement is also untaxed.
4. New Mexico — partial property-tax credit
New Mexico offers a property-tax exemption on $4,000 of assessed value for honorably discharged veterans (any rating) and a separate 100% exemption for 100% service-connected disabled veterans. The 70%-tier benefit is small but stackable with other property-tax relief.
5. Massachusetts — local-option clauses 22A through 22F
Massachusetts offers tiered tax credits through Clauses 22A–22F: a 10–69% disabled veteran qualifies under Clause 22 for $400 off the property-tax bill; a paraplegic or 100% disabled veteran qualifies for a full exemption. Cities and towns can vote to increase the amounts under home-rule petitions, so the actual benefit varies by municipality.
Compare side by side
| State | Benefit at 70% | Benefit at 100% | State income tax |
|---|---|---|---|
| Texas | $10,000 assessed-value exemption | Full homestead exemption | None |
| Florida | $5,000 assessed-value reduction | Full homestead exemption | None |
| Illinois | 100% exemption | 100% exemption | 4.95% flat (retirement income exempt) |
| Virginia | Limited | Full real-estate tax exemption | Up to $40,000 military-retirement subtraction |
| New Jersey | None (100% only) | Full property-tax exemption | Military retirement exempt |
| Maryland | None | Full property-tax exemption | $20,000 retirement exclusion (55+) |
| South Carolina | None | Full property-tax exemption | Military retirement fully exempt |
| Iowa | Limited | Full homestead exemption | Military retirement exempt |
| Indiana | Graduated deduction | Larger deduction (not full exemption) | Military retirement exempt |
What the exemption is worth — a worked example
Property-tax savings depend on the local rate and your home's assessed value. A few rough examples for context:
- Texas, $400K home, ~2.1% effective rate. A 100% exemption is worth roughly $8,400 per year, or about $250K over 30 years.
- New Jersey, $500K home, ~2.5% effective rate. The 100% exemption is worth roughly $12,500 per year.
- Illinois, $300K home, 70% disabled, ~2.3% effective rate. The 100% homestead exemption at the 70% tier is worth roughly $6,900 per year — the most generous 70%-tier benefit in the country.
Before you move — three things to check
- Your exact rating bracket. A 90% rating qualifies in some states and not others. "100% P&T" is stricter than "100% schedular." Confirm which tier your state recognizes.
- Your county. Property-tax exemptions are administered locally. Filing windows, required forms, and deadlines vary by county or township.
- Surviving-spouse rules. If you want the benefit to continue for a spouse, pick a state that allows it (Texas, Florida, Virginia, New Jersey, Maryland, and South Carolina all do).
Sources
- Texas Comptroller — Disabled Veteran Property Tax Exemption
- Florida Department of Revenue — Property Tax Exemptions
- Virginia Department of Taxation — Real Estate Tax Exemption
- New Jersey Treasury — 100% Disabled Veteran Property Tax Exemption
- Illinois Department of Revenue — Property Tax Relief for Veterans
- Maryland Department of Assessments — Disabled Veteran Exemption
- South Carolina Department of Revenue — Exempt Property
- Iowa Department of Revenue — Disabled Veteran Homestead Tax Credit
- Indiana Department of Veterans' Affairs — Property Tax Deductions
Bottom line: at 100% disability, Texas, Florida, New Jersey, Virginia, Maryland, South Carolina, Iowa, Oklahoma, Michigan, and Pennsylvania all eliminate the property tax on a primary residence. At 70% disability, Illinois is in a class of its own — a full homestead exemption at that tier is rare. Compare your specific ranking to the state benefit before you commit; use our state benefits hub to drill into the rules for each state you are considering, and our overall best states for veterans 2026 page for a wider comparison that includes tuition and income-tax treatment.