Illinois Disabled Veteran Property Tax Exemption: Amounts and Eligibility

The Illinois disabled veteran tax exemption reduces property taxes on a veteran's primary residence based on their VA disability rating. Veterans rated 30–49% disabled receive a $2,500 reduction in equalized assessed value (EAV), those rated 50–69% receive a $5,500 reduction, and those rated 70% or higher are fully exempt from property taxes on their home. These exemptions are governed by Illinois statutes 35 ILCS 200/15-165 and 35 ILCS 200/15-169.

What Is the Standard Homestead Exemption for Veterans with Disabilities (SHEVD)?

The SHEVD is Illinois's main property tax exemption for disabled veterans. It lowers the assessed value of your home, which directly reduces your property tax bill. The amount you save depends on your VA disability rating, which must be service-connected.

Here are the current exemption amounts:

30% to 49% disability rating: $2,500 reduction in EAV
50% to 69% disability rating: $5,500 reduction in EAV
70% or higher disability rating: Full property tax exemption (100%)

The 100% exemption for veterans rated 70% or higher is one of the most generous property tax benefits available in any state. It means your primary residence is entirely removed from the property tax rolls. Some other states offer partial exemptions for example, Oregon's disabled veteran property tax waiver has its own structure and requirements.

Who Qualifies for the Illinois Disabled Veteran Exemption?

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

You must be a veteran of the United States Armed Forces
You must have a service-connected disability as rated by the U.S. Department of Veterans Affairs
The property must be your primary residence (homestead)
You must own or have a legal or equitable interest in the property
You must have an approved Illinois Disabled Veterans' Standard Homestead Exemption on file with your county assessor

The exemption applies to the veteran. If a veteran passes away, their unmarried surviving spouse can continue to receive the exemption on the same property, as long as it remains their primary residence.

What If I Have Specially Adapted Housing?

Illinois also offers a separate exemption for veterans who received a VA grant for specially adapted housing. Under 35 ILCS 200/15-169, this exemption can reduce your EAV by up to $100,000. This applies to veterans who have been awarded a federal grant specifically for adapting a home to accommodate their disability.

This exemption can be combined with the SHEVD in certain circumstances, but not with the full 100% exemption. Your county assessor's office can clarify which combination applies to your situation.

How Do I Apply for the Illinois Disabled Veteran Property Tax Exemption?

The application process is handled at the county level. Here's what to expect:

Gather your documents. You'll need your VA disability rating letter showing your service-connected disability percentage, proof of property ownership, and a valid photo ID.
Complete the application. Fill out the Illinois Disabled Veterans' Standard Homestead Exemption application form. Many counties make this available online through their assessor's website.
Submit to your county assessor. File the application with your county or township assessor's office. Some counties allow mail-in or online submissions.
Renew when necessary. For the partial exemptions (30–49% and 50–69%), you generally only need to apply once, unless your disability rating changes or you move. The 100% exemption for 70%+ rated veterans also typically remains in place without annual renewal, but you should verify with your local assessor.

Application deadlines vary by county. Many counties require filing before the county board of review meets, which often falls in the spring. Contact your county assessor early to confirm the deadline.

How Much Money Does the Exemption Actually Save Me?

Your actual dollar savings depend on two things: the EAV reduction you qualify for and your local tax rate. Here's a simple example:

Say your home has an assessed value of $50,000, and your county's combined tax rate is 8%.

No exemption: $50,000 × 8% = $4,000 in annual property taxes
30% disability ($2,500 reduction): $47,500 × 8% = $3,800 a $200 savings
50% disability ($5,500 reduction): $44,500 × 8% = $3,560 a $440 savings
70%+ disability (full exemption): $0 a $4,000 savings

In areas with higher property values and tax rates, the savings are proportionally larger. The full 100% exemption at 70% or above eliminates your entire property tax bill on your primary residence.

Can I Combine This Exemption with Other Illinois Property Tax Exemptions?

Yes. Illinois disabled veterans can typically stack the SHEVD with other standard exemptions, including:

General Homestead Exemption: Available to all Illinois homeowners on their primary residence
Senior Homestead Exemption: For homeowners age 65 and older
Senior Freeze: Locks the assessed value for qualifying senior homeowners
Home Improvement Exemption: Covers up to $75,000 in assessed value increases from improvements

The full 100% exemption for 70%+ disabled veterans makes stacking irrelevant in most cases since the property tax is already eliminated. But for those with partial ratings, combining exemptions can make a meaningful difference.

What Common Mistakes Do Disabled Veterans Make with This Exemption?

Not knowing your VA disability rating counts

Some veterans don't realize that a 30% VA disability rating which might seem modest qualifies them for a property tax reduction in Illinois. If you have any service-connected disability rating, it's worth checking whether you qualify.

Filing in the wrong county

If you move to a new county in Illinois, you need to refile your exemption with the new county assessor. The exemption doesn't automatically transfer.

Missing the filing deadline

Each county sets its own application window. Missing it could mean waiting another year for the exemption to take effect. Mark the deadline on your calendar as soon as you know it.

Confusing the exemption with a tax refund

The SHEVD reduces your assessed value before taxes are calculated it doesn't give you money back after you've already paid. You need to have it in place before the tax bills go out.

Assuming you don't qualify because your disability isn't combat-related

The exemption covers all service-connected disabilities, whether they occurred during combat, training, or any other military service. The only requirement is a VA service-connected disability rating.

What Happens If My Disability Rating Changes?

If the VA increases your disability rating, you should notify your county assessor immediately. Moving from a 50% to a 70% rating, for example, takes you from a $5,500 EAV reduction to a full 100% exemption a significant difference in savings.

You'll need to provide your updated VA rating letter as proof. There is no penalty for updating mid-cycle, and the assessor can apply the change once verified.

If the VA reduces your rating (which can happen during periodic reviews), you're also required to report this. Failing to disclose a reduced rating can lead to back taxes and penalties.

How Does Illinois Compare to Other States?

Illinois's 100% property tax exemption for veterans rated 70% or higher is among the most generous in the country. Not every state offers a full exemption at any disability level some states cap the benefit or offer only partial reductions. You can read more about how other states handle veteran property tax exemptions to see how Illinois stacks up.

States like Hawaii and Mississippi have their own qualification criteria and amounts. If you're comparing benefits across states or considering relocation, the differences in property tax exemptions can be substantial.

Veterans receiving a VA pension may also qualify for additional state-level tax relief. This is covered in more detail in our guide to state tax exemptions for VA pension recipients.

What Documents Do I Need to Apply?

Bring or submit the following to your county assessor's office:

VA Rating Decision Letter This is the most important document. It shows your disability percentage and confirms the rating is service-connected. You can get a copy from your VA regional office or download it from VA.gov.
Proof of ownership A deed, mortgage statement, or property tax bill in your name
Proof of residency Illinois driver's license, utility bill, or voter registration showing the property address
Completed application form Available from your county assessor's office or website
DD-214 Some counties request this as additional proof of military service

Checklist: Steps to Claim Your Illinois Disabled Veteran Tax Exemption

Confirm your VA disability rating and get a current copy of your rating decision letter
Verify the property is your primary residence and that you're listed as owner
Download or request the SHEVD application from your county assessor's website
Gather all required documents (rating letter, proof of ownership, ID, DD-214)
Submit the application before your county's deadline ask your assessor directly if the date isn't posted
Follow up with the assessor's office to confirm your exemption has been approved and will appear on your next tax bill
Notify the assessor if your VA rating changes or if you move to a new property or county

Tip: Call your county assessor before you start the process. Staff can tell you exactly which forms your county uses, the current filing deadline, and whether they accept electronic submissions. This one call can save you from filing incorrectly or missing the window entirely. You can find your county assessor's contact information on the Illinois Department of Revenue website or your county government's official site.