Illinois disabled veteran property tax exemption (2026)
$2,500 EAV off at 30–49%, $5,000 at 50–69%, up to $250,000 EAV exempt at 70%+. EAV is converted to market value at one-third.
See your true monthly cost in Illinois →
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* |
|---|---|---|
| 10–20% | No statewide exemption | — |
| 30–40% | $7,500 of value exempt | $155 |
| 50–60% | $15,000 of value exempt | $310 |
| 70–90% | $750,000 of value exempt | $8,280 |
| 100% or IU | $750,000 of value exempt | $8,280 |
*Example: a $400,000 home at Illinois's average property tax rate of 2.07%, about $8,280 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
- Illinois Housing Development Authority ↗ (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 Illinois
- Illinois Department of Veterans Affairs ↗: free help with state veteran benefits.
- Your county assessor's office handles the property tax exemption application.