Arizona Property Tax Exemption for Disabled Veterans

Arizona’s property tax exemption for disabled veterans can eliminate the property tax bill on your primary residence entirely if the VA rates your service-connected disability at 100%, or reduce your taxable value by up to $4,873 for the 2026 tax year if your rating is lower or your disability is not service-connected. You must be an honorably discharged Arizona resident, meet an annual income limit, and file an affidavit with your county assessor between the first Monday in January and March 1 each year.

Who Qualifies

Two things have to be true before anything else matters: you’re an Arizona resident with an honorable discharge from the U.S. Armed Forces, and the U.S. Department of Veterans Affairs has assigned you a disability rating. Arizona covers both service-connected and nonservice-connected disabilities, so a veteran whose disability was not caused by military service can still qualify as long as the VA has rated it.¹

The unremarried surviving spouse of a veteran who qualified for the exemption can continue claiming it, as long as the spouse still uses the property as a primary residence and has not remarried.¹

How Much the Exemption Is Worth

The exemption lowers the assessed limited property value on your home before your tax rate is applied. It’s a true exemption, not a credit taken off the final bill.

100% Service-Connected Rating

If the VA rates your service-connected disability at 100%, your primary residence is fully exempt from property taxation. You owe nothing in property tax on that home.² A surviving spouse keeps this full exemption under the conditions above.

All Other Ratings

Veterans with a service-connected disability rated below 100%, or any nonservice-connected disability rated by the VA, get a partial exemption. For the 2026 tax year, the maximum is $4,873 of assessed value, multiplied by your VA disability percentage.² A veteran rated at 60% would receive an exemption of $2,924 ($4,873 × 0.60).¹ Any unused portion left after it’s applied to your real property can carry over to eligible personal property such as a mobile home or vehicle.

Income Limits

Every applicant household has to fall under an annual income ceiling. For the 2026 tax year:²

$39,865 with no children under 18 in the home.
$47,826 with one or more children under 18, or children with a total and permanent disability, in the home.

The number counts combined income of the veteran, spouse, and any children in the household during the prior calendar year. Several major sources don’t count: Social Security benefits, military pensions, and VA disability payments are all excluded.² That changes the math for many veterans. If most of what you receive each year is VA compensation and Social Security, only your other income counts against the cap.

The thresholds adjust annually using the GDP price deflator.¹ Arizona also enacted HB 2973, which raises the base income limits to $135,000 (no children) and $150,000 (with children).³ Those higher limits take effect in a future tax year, so if income kept you out before, ask your county assessor when the new numbers apply to your filing.

Property Requirements

The home must be your primary residence, and you have to be the owner of record. Rentals, investment homes, and vacation properties don’t qualify. The exemption applies to the assessed limited property value, not the full cash value or market value.²

There’s also a cap on the total assessed value of all property you own in Arizona. For 2025 that cap was $31,347. The limit adjusts every year, and starting with tax year 2026 it’s calculated using the federal house price index rather than the GDP price deflator.¹ Your county assessor can confirm the current number.

How to File

Gather these before you go to the assessor’s office:

DD-214, your Certificate of Release or Discharge from Active Duty, showing honorable discharge.
VA Summary of Benefits letter confirming your disability rating and whether it is service-connected.⁴
Proof of residency and ownership, such as an Arizona driver’s license or a prior year’s property tax bill.
Prior year’s Arizona income tax return (Form 140) showing your household income.⁴
Affidavit of Individual Tax Exemption (Form 82514), from your county assessor or the Arizona Department of Revenue.

The filing window opens the first Monday in January and closes March 1 of the tax year.⁴ Submit everything to the assessor’s office in the county where the property sits.

First-time applicants have to file in person. Bring originals of the DD-214 and VA letter so staff can verify them. After the initial filing, most counties allow renewal by mail, though a notarized affidavit is typically required for mailed submissions.⁵

One timing quirk: your prior-year Arizona return may not be finished by March 1. Counties let you submit the return separately, but it must arrive no later than June 30. The affidavit itself still has to be filed by March 1.⁴

Renewing Every Year

The affidavit has to be filed every year, not just the first time.⁴ Permanent documents like the DD-214 stay on file, but you re-attest each year that you still meet the income and residency rules. Once the assessor approves the renewal, the exemption shows up on that year’s property tax bill.

Miss March 1 and you forfeit the exemption for the whole year. There is no retroactive filing or grace period for individual veterans.⁴ This is where the benefit most often gets lost. A calendar reminder in late December is the cheapest protection there is.

If You’re Denied

Ask the assessor for the specific reason first. Common ones are income above the cap, a missing document, or a property that doesn’t qualify as a primary residence. Some of those can be corrected within the filing window.

If you still disagree, Arizona’s appeal path runs through three levels. Petition the county Board of Equalization within 25 days of the date the assessor’s decision was mailed. If that ruling goes against you, you have 60 days from the Board’s mailed decision to file in Tax Court.⁶ In Maricopa and Pima counties, you also have the option to appeal to the State Board of Equalization before going to Tax Court.⁷ These deadlines are strict; mark them the day any unfavorable decision arrives.

Penalties for False Statements

The affidavit you sign each year is a sworn document. A false statement on it qualifies as perjury under Arizona law,⁸ which is a Class 4 felony in Arizona and carries potential prison time.⁹ Misstating income, disability status, or residency to claim the exemption is a criminal matter, not a paperwork issue. Accuracy counts every year you refile.

1
Arizona Legislature. Arizona Revised Statutes Title 42-11111 – Exemption for Property Widows and Widowers Persons With Disabilities and Veterans
2
Maricopa County Assessor’s Office. Personal Exemptions – Section: Valuation Relief Programs
3
Arizona Legislature. HB 2973 – Property Tax Exemption Income Limit
4
Cochise County, AZ. Individual / Organization Exemptions
5
Pinal County. Veterans Exemptions
6
Arizona State Board of Equalization. How to File an Appeal
7
Arizona State Board of Equalization. How To Appeal
8
Arizona Legislature. Arizona Revised Statutes Title 42-11152 – Affidavit Electronic Submission Acknowledgment of Receipt False Statements
9
Arizona Legislature. Arizona Revised Statutes Title 13-2702 – Perjury Classification