Property Tax Benefits for Veterans in Arizona

Disabled Veteran Property Tax Exemption

Arizona exempts a portion of a veteran's property value from taxation based on VA disability rating. Following passage of Proposition 130 (2022), which restored the constitutional exemption for veterans, veterans rated 100% service-connected disabled receive a full exemption on their property; veterans rated below 100% receive a partial exemption of assessed value scaled to their disability percentage.

Eligibility: Arizona-resident veteran with a VA service-connected disability. 100% rating: full exemption. Less than 100%: partial exemption, subject to statutory income and total-assessment limits (ARS 42-11111).

Estimated value: Full exemption at 100% disability; otherwise a partial exemption of assessed value (base amount adjusted annually for inflation, roughly $4,700 in 2025) multiplied by the disability percentage

How to apply: File an exemption affidavit with your county assessor, providing VA disability documentation. Exemptions are handled at the county level.