Arizona Property Tax Exemption for 100% Disabled Veterans: State Tax Exemption Guide

If you're a 100 percent disabled veteran living in Arizona, you qualify for a property tax exemption on your primary residence. Under Arizona Revised Statutes § 42-11111, the state exempts a portion of your home's assessed value from property taxes based on your VA disability rating. For veterans rated at 100 percent service-connected disability, the exemption amount is the highest available, which can significantly reduce or even eliminate your annual property tax bill.

How Much Is the Arizona Property Tax Exemption for 100 Percent Disabled Veterans?

Arizona's exemption works by reducing the assessed value of your home. The exact dollar amount of the exemption is adjusted periodically by the Arizona Department of Revenue. For veterans with a 100 percent service-connected disability rating, the exemption applies to the full assessed value of their qualifying residence up to the statutory limit. In many cases, this can bring the taxable assessed value down to zero, meaning you owe no property tax on your home.

The exemption covers only your primary residence the home you actually live in. It does not apply to rental properties, second homes, or vacant land you don't occupy.

Who Qualifies for This Exemption?

To qualify, you must meet all of the following conditions:

You have a 100 percent service-connected disability rating from the U.S. Department of Veterans Affairs
You are an Arizona resident
You own and occupy the property as your primary residence
The property is classified as residential (Class 3 or Class 4 property in Arizona's assessment system)

Surviving spouses of qualifying veterans may also be eligible for the exemption under certain circumstances, provided they have not remarried and continue to occupy the property.

What Paperwork Do You Need to Apply?

You'll need to file an application with your county assessor's office. The documents typically required include:

A completed Disabled Veterans' Property Tax Exemption Application (available from your county assessor)
Your VA disability rating letter showing a 100 percent service-connected disability
Proof of Arizona residency
Proof of ownership of the property (deed or similar documentation)

Once approved, you don't need to reapply every year. However, if your disability rating changes or you move to a new home, you'll need to refile with the county assessor in your new county.

When Should You File the Application?

Arizona law requires that the exemption application be filed with the county assessor by September 1 of the tax year you want the exemption to apply. If you miss the deadline, the exemption won't take effect until the following tax year. This is one of the most common mistakes veterans make filing late and losing a full year of tax savings.

If you've just moved to Arizona or recently received your 100 percent rating, file as soon as possible. Don't wait until the deadline approaches.

Does the Exemption Apply Automatically If You Move?

No. If you change homes within Arizona, you need to notify the assessor in your new county and file a new application. The exemption is tied to a specific property, not to you as a person. If you move to a different county say from Maricopa to Pima the new county assessor has no way of knowing about your previous exemption unless you tell them.

Can You Combine This With Other Arizona Tax Benefits?

Absolutely. The disabled veteran property tax exemption can be used alongside other Arizona tax benefits you may qualify for, including:

Arizona's property tax freeze for qualifying seniors and disabled individuals
Senior property valuation freeze (if you also qualify based on age and income)
Other veteran-specific benefits at the state level

Beyond property taxes, veterans living in Arizona should also look into how their military pension may be exempt from state income tax in certain states, as the rules vary significantly across the country.

What If You Have a Disability Rating Below 100 Percent?

Arizona's exemption is available at lower disability ratings too, but the exempt amount is proportionally reduced. Veterans with a 25 percent, 50 percent, or 75 percent rating still qualify they just receive a smaller exemption on their home's assessed value. If your rating increases to 100 percent, file an updated application with your county assessor so the exemption amount reflects your new rating.

Veterans dealing with PTSD may also qualify for state tax exemptions specifically related to PTSD-related disability ratings, which can stack with property tax benefits in some states.

Common Mistakes Veterans Make With This Exemption

Filing late: Missing the September 1 deadline means waiting an entire year for the exemption to kick in
Not re-filing after a move: The exemption doesn't transfer automatically between properties or counties
Forgetting to update the assessor: If your VA rating increases, report it. You could be leaving money on the table with a lower exemption amount
Assuming it covers all properties: Only your primary residence qualifies not investment properties or land
Not checking the county assessor website: Some counties have additional forms or requirements beyond the state-level application

How Does Arizona Compare to Other States?

Arizona's disabled veteran property tax exemption is competitive with most states, but the details vary widely across the country. If you're considering relocating or if you own property in multiple states it's worth comparing what each state offers. For example, Nebraska has its own veteran property tax exemption with a specific application deadline, and Rhode Island structures its exemption by city and town, which means the benefit can differ depending on where you live within the state.

Some states also offer sales tax holidays for active-duty service members and veterans, which is a separate but related savings worth knowing about.

Quick Reference: Key Details at a Glance

Statute: ARS § 42-11111
Who qualifies: Veterans with 100% service-connected VA disability
What's exempt: A portion (or all) of the assessed value of your primary residence
Application deadline: September 1 of the tax year
Where to file: Your county assessor's office
Renewal: Generally automatic once approved, unless circumstances change
Surviving spouse: May qualify if not remarried and still occupying the property

Next Steps Checklist

Get your VA disability rating letter. If you don't have a current copy, request one from VA.gov or call 1-800-827-1000.
Contact your county assessor's office and ask for the Disabled Veterans' Property Tax Exemption application.
Gather your documents: VA rating letter, proof of Arizona residency, and proof of property ownership.
Submit your application before September 1 to receive the exemption for the current tax year.
Confirm approval in writing. Keep a copy of your approved application with your tax records.
Set a reminder to check annually whether the exemption amount has changed due to updates in state law or changes to your VA rating.

Don't wait on this. Every year you delay filing is a year of property tax savings you miss. If you're unsure about your county's specific process, call your county assessor directly most Arizona county assessor offices are familiar with this exemption and can walk you through their local requirements over the phone.