Tennessee disabled veteran property tax exemption (2026)
State reimburses tax on the first $175,000 of market value for 100% P&T.
See your true monthly cost in Tennessee →
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% | No statewide exemption | — |
| 100%, not P&T | No statewide exemption | — |
| 100% P&T or IU | $175,000 of value exempt | $963 |
*Example: a $400,000 home at Tennessee's average property tax rate of 0.55%, about $2,200 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
No state income tax.
VA disability pay is tax-free in every state.
Home loan and down payment help
- Tennessee Housing Development Agency ↗ (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 Tennessee
- Tennessee Department of Veterans Services ↗: free help with state veteran benefits.
- Your county assessor's office handles the property tax exemption application.