Do disabled veterans pay property tax in Arizona? A veteran with a 100% service-connected disability rating from the VA gets a full property tax exemption on their primary residence. That's under HB 2792, signed in February 2026 and applying to tax years beginning Jan. 1, 2026. Veterans with lower ratings can claim a partial exemption, up to $4,873 for 2026 in Maricopa County, multiplied by their disability percentage.
What changes in 2027: under HB 4168, income limits are removed for disabled veterans and surviving spouses. TDIU veterans qualify for the full exemption, and surviving spouses gain new options. Filing for tax year 2027 opens the first Monday in January.
Data note: Rules come from A.R.S. § 42-11111, Arizona House summaries of HB 2792 and HB 4168, and the Maricopa County Assessor's Personal Exemptions pages and 2026 legislative update, read November 10, 2026. This is general information, not tax advice.
The Exemption at a Glance
For tax year 2026:
- 100% service-connected: full exemption on the primary residence
- 1%-99% service-connected, or nonservice-connected: up to $4,873 off assessed limited property value, multiplied by the disability percentage
- Income limits (household): $39,865, or $47,826 with children under 18 or disabled children in the home
- Not counted as income: Social Security, military pensions, VA disability payments
- Honorable discharge required
Starting tax year 2027 (HB 4168):
- No income limits for disabled veterans and their surviving spouses
- TDIU veterans qualify for the full exemption
- Surviving spouses of 100%/TDIU veterans can claim the full exemption, even if the veteran never filed
- Surviving spouses of veterans rated below 100% can claim a partial exemption
- The exemption can transfer to a new primary residence if you file within 60 days of the move
How the Partial Exemption Works
The Assessor's example: the $4,873 2026 amount times a 60% rating equals $2,924. That's applied to the home's assessed limited property value, which is the taxable portion, and to your share of ownership. The Assessor says that lowers the tax bill and, in some cases, can eliminate it.
The statute's base amount is $4,188. The Arizona Department of Revenue adjusts it each year by the GDP price deflator, which is why the Assessor's 2026 figure is higher.
The 2026 Income Rule Caught Some Veterans Off Guard
For 2026, the Maricopa County Assessor's guidance says income qualifications apply to all applicants, including 100% service-connected veterans. A veteran with a working spouse could miss the household cap. That changes with HB 4168. Starting in 2027, eligibility no longer depends on household income.
A note on TDIU for 2026
The Assessor says 2026 eligibility for the full exemption is based on the combined service-connected rating on your VA letter, not the compensation rate. A veteran paid at the 100% rate through TDIU with a lower combined rating doesn't qualify for 2026. The 2027 law adds TDIU explicitly.
How to Apply in Maricopa County
When
- First Monday in January through Feb. 28, or
- March 1 through Sept. 1 with an Exemption Deadline Waiver
What to bring
- Personal Exemption Application
- Proof of Arizona residency (primary residence for the 100% exemption)
- Income documentation where required (for 2026 the Assessor asks for Form AZ 140; HB 4168 removes the veteran income test starting in 2027)
- VA letter showing your disability percentage
- For a surviving spouse continuing a 100% exemption, the Assessor notes income documentation isn't required
Moving?
If you buy a new primary residence, file the county's exemption transfer form within 60 days. The Assessor lists the transfer option for 100%/TDIU veterans and qualifying surviving spouses under the 2027 rules. Questions go to the Assessor at 602-506-3406.
“Every veteran I work with, buying or selling, gets the same question from me early: have you filed for your county exemption? With the 2027 changes, some veterans who were turned down because of household income may now qualify. If you're buying a home this winter, put the January filing window on your calendar now.”
— Elizabeth Vijan, Tackett Team, eXp Realty
Frequently Asked Questions
Do disabled veterans pay property tax in Arizona?
100% service-connected veterans are fully exempt on a primary residence. Others may get up to $4,873 (2026), scaled by rating.
Is there an income limit for the Arizona disabled veteran property tax exemption?
For 2026, yes: $39,865 or $47,826. Starting in 2027, limits are removed for disabled veterans and surviving spouses.
What is the new disabled veteran property tax exemption for Arizona?
HB 4168 (tax year 2027): TDIU qualifies, no income limits, and expanded surviving spouse eligibility.
When do I apply for the veteran property tax exemption in Maricopa County?
First Monday in January through Feb. 28, or by Sept. 1 with a waiver.
A Veteran Buying or Selling in the Valley?
I'll make sure your exemptions, VA loan benefits and timing work together, so you keep more of what you've earned.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate
Let's Talk · Call or text 602-885-7752
Sources: A.R.S. § 42-11111: Exemptions for widows, widowers, disabled persons and veterans · Arizona House summary: HB 2792 · Arizona House summary: HB 4168 · Maricopa County Assessor: Personal Exemptions · Maricopa County Assessor: Exemption FAQ · Maricopa County Assessor: 2026 legislative changes
Disclaimer: General information, not tax or legal advice. Eligibility is determined by the County Assessor. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch