Arizona Property Tax Exemptions for Disabled Veterans: What Changes in 2026 and 2027
Arizona has significantly expanded property tax relief for disabled veterans—and if you own a home or are considering buying one, these changes are worth understanding.
Two of the biggest barriers that previously prevented some disabled veterans from qualifying have been addressed: the property-value limitation has been eliminated for the disabled-veteran exemptions, and beginning in 2027, qualifying disabled veterans will no longer be subject to the household-income limitation.
For some veterans, particularly those with a 100% service-connected disability, the savings could be substantial.
KEY TAKEAWAYS
PROPERTY VALUE LIMIT REMOVED
A qualifying veteran's home can no longer be disqualified from the disabled-veteran exemption simply because its assessed property value exceeds the previous limitation.
INCOME LIMIT REMOVED BEGINNING IN 2027
For tax year 2026, household-income requirements still apply to disabled-veteran exemptions. Beginning in 2027, the income limitation is removed for qualifying disabled veterans and qualifying surviving spouses.
100% SERVICE-CONNECTED DISABLED VETERANS
An eligible Arizona veteran with a 100% service-connected VA disability rating—or qualifying Total Disability based on Individual Unemployability (TDIU)—may receive a full property tax exemption on their primary residence, subject to Arizona's eligibility requirements.
SIMPLY PUT:
For a qualifying veteran with a 100% service-connected disability or qualifying TDIU, Arizona's expanded exemption can potentially mean no property tax on the veteran's primary residence.
WHAT CHANGED WITH THE PROPERTY VALUE LIMIT?
In the past, the value of a veteran's property could affect eligibility for the exemption.
That limitation has now been eliminated for Arizona's disabled-veteran exemptions.
This is important because rising Arizona home values could previously create a situation where an otherwise qualifying veteran owned a home whose assessed value exceeded the allowable limit.
The value of the home itself is no longer the barrier it once was for these veteran exemptions.
WHAT ABOUT THE INCOME LIMIT?
This is where the timing matters.
For tax year 2026, qualifying disabled veterans are still subject to applicable household-income requirements.
Beginning in tax year 2027, disabled veterans and qualifying surviving spouses will no longer be subject to the household-income limitation for these exemptions.
That means veterans who previously earned too much to qualify may become eligible beginning in 2027, assuming they satisfy the other requirements of the exemption.
WHAT IF MY VA DISABILITY RATING IS LESS THAN 100%?
The benefit isn't limited only to veterans rated 100% disabled.
Arizona law also provides a property tax exemption for qualifying veterans with a service-connected disability rating below 100%. Rather than receiving the full primary-residence exemption available to qualifying 100% service-connected disabled veterans, the exemption amount is generally prorated according to the veteran's VA disability rating.
If you have a VA disability rating below 100%, it is still worth checking with your County Assessor to determine what exemption may be available to you.
DOES THE EXEMPTION HAPPEN AUTOMATICALLY?
No.
Pima County homeowners can review current eligibility requirements, required documentation, and application information directly through the Pima County Assessor:
Pima County Assessor – Disabled Veteran Property Tax Exemption
Receiving a VA disability rating does not automatically change your Arizona property taxes.
The exemption is administered through the County Assessor in the county where your property is located. New applicants generally need to apply during Arizona's annual exemption application period.
The Arizona Department of Revenue identifies the normal application window as beginning on the first Monday in January and ending March 1.
Because requirements and documentation can vary based on your circumstances, contact your County Assessor directly before applying.
WHY THIS MATTERS WHEN BUYING A HOME
Property taxes are part of the ongoing cost of homeownership.
For a veteran who qualifies for Arizona's disabled-veteran property tax exemption, understanding the benefit before purchasing a home can provide a much clearer picture of the long-term cost of ownership.
For a qualifying veteran receiving the full exemption, eliminating property taxes on a primary residence could significantly change the monthly and annual cost of owning that home.
That's why veteran homeownership planning shouldn't stop at simply asking whether you qualify for a VA home loan.
Your VA home loan benefit, VA disability-related benefits, Arizona property tax benefits, available entitlement, funding-fee exemption status, and long-term housing goals can all be important pieces of the same home-buying strategy.
YOUR VA HOME LOAN BENEFIT MAY OFFER EVEN MORE
The VA home loan itself provides several powerful advantages for eligible veterans.
Qualified borrowers may be able to purchase with $0 down.
VA loans do not require monthly private mortgage insurance.
Many veterans receiving VA compensation for a service-connected disability are exempt from the VA funding fee.
Your VA home loan benefit can also be used more than once, and veterans with sufficient remaining entitlement may potentially have more than one VA-backed loan at the same time.
Understanding how these benefits work together can make a significant difference when planning your next home purchase.
READY TO EXPLORE YOUR NEXT MOVE?
Whether you're buying your first home, using your VA home loan benefit again, or considering selling your current home and making another move, understanding the benefits available to you should be part of the plan.
As a military veteran and Associate Broker, I help veterans throughout the Tucson area understand how the VA home loan fits into the real-world home buying and selling process.
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If you feel this information could be valuable to someone you know, please share this page with them. Sometimes simply knowing a benefit exists can make a meaningful difference.
IMPORTANT INFORMATION
This article is provided for general educational purposes and is not tax, legal, lending, or financial advice. Property tax laws, exemption amounts, qualification requirements, application procedures, and VA lending requirements can change. Eligibility depends on individual circumstances. Veterans should verify current property tax exemption requirements directly with the Arizona Department of Revenue and their County Assessor and consult appropriate tax, legal, or lending professionals when necessary.
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