Arizona disabled veteran property tax exemption (2026)
Full exemption at 100% starting tax year 2026, with no income limit. Below 100%, a share of about $4,873 of assessed value equal to your rating, only if the home is assessed under about $31,347 (roughly $313,000 of value).
See your true monthly cost in Arizona →
Free. Applies your rating, VA pay and this exemption to any home.
Property tax break by VA rating
| VA rating | Property tax break | Saves / yr* |
|---|---|---|
| 10–90% | Smaller break, only for lower-value homes (see above) | $0 at $400,000 |
| 100% or IU | Full exemption | $2,080 |
*Example: a $400,000 home at Arizona's average property tax rate of 0.52%, about $2,080 a year before any exemption. Your bill depends on your county and home. IU means paid at the 100% rate for individual unemployability. P&T means permanent and total. Exemptions aren't automatic: you apply with your county assessor after you buy.
Military retirement pay
Military retirement not taxed.
VA disability pay is tax-free in every state.
Home loan and down payment help
- Arizona Department of Housing (HOME Plus) ↗ (state housing agency: first-time buyer and down payment programs)
Programs change often. Check income limits, first-time buyer rules and whether they can be combined with a VA loan.
Get help in Arizona
- Arizona Department of Veterans Services ↗: free help with state veteran benefits.
- Your county assessor's office handles the property tax exemption application.