Arizona Property Tax Exemption for Disabled Veterans: 2026 Rules

The Arizona property tax exemption for disabled veterans reduces, and in some cases eliminates, the property tax owed on a qualifying veteran’s primary residence. For the 2026 tax year, a veteran with a 100% service-connected disability rating from the U.S. Department of Veterans Affairs pays no property tax on their home. Veterans with lower service-connected ratings, or with a VA-rated nonservice-connected disability, can exempt up to $4,873 of assessed value, scaled by their disability percentage.¹ You claim it by filing an affidavit with your county assessor between the first Monday in January and March 1 each year.²

Who Qualifies

You must be an Arizona resident, have received an honorable discharge from the U.S. Armed Forces, and hold a disability rating from the VA.³ 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 assigned a rating.

An unremarried surviving spouse of a veteran who qualified for the exemption may continue to claim it, provided the property remains the spouse’s primary residence and the spouse has not remarried.³

How Much the Exemption Is Worth

The exemption reduces the limited property value the county uses to calculate your bill, so a smaller assessed value produces a smaller tax.

100% Service-Connected Disability

A VA rating of 100% service-connected disability makes your primary residence fully exempt from property taxation. You owe nothing on that home.¹ A qualifying surviving spouse keeps the full exemption under the conditions described above.

Partial Ratings and Nonservice-Connected Disabilities

If your service-connected rating is below 100%, or if your disability is nonservice-connected, you receive a partial exemption. For 2026 the maximum exemption is $4,873 of assessed value, multiplied by your VA disability percentage.¹ A veteran rated at 60% would receive an exemption of $2,924 ($4,873 × 0.60).³

Any portion of the exemption left over after it is applied to your real property can carry over to other eligible personal property, such as a mobile home or a vehicle.

Income Limits for 2026

Every applicant household has to come in under an annual income ceiling, regardless of disability rating. For 2026:¹

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

These figures count the combined prior-year income of the veteran, their spouse, and any children in the household. Several large sources are excluded: Social Security benefits, military pensions, and VA disability payments do not count toward the cap.¹ A veteran receiving $30,000 in VA disability compensation plus $15,000 in part-time wages would only count the $15,000.

The thresholds adjust annually using the GDP price deflator.³ Arizona also enacted HB 2973, which raises the base limits to $135,000 (no children) and $150,000 (with children).⁴ Those higher limits will likely take effect for a future tax year, so veterans who previously exceeded the cap should ask their county assessor when the new numbers apply.

Property Requirements

The home must be your primary residence, and you must be the owner of record. Rentals, investment properties, and vacation homes do not qualify. The exemption applies to the limited property value, not the full cash value.¹

The statute also caps the total assessed value of all property you own in Arizona. For tax year 2025, that cap was $31,347. It adjusts each year, and beginning with tax year 2026 the adjustment is calculated using the federal house price index rather than the GDP price deflator.³ Your county assessor can confirm the current figure.

Documents You Need

Have everything together before you walk into the assessor’s office:

DD-214, your Certificate of Release or Discharge from Active Duty, proving honorable discharge.
VA Summary of Benefits letter confirming your disability rating and whether it is service-connected.²
Proof of Arizona residency and ownership, such as an Arizona driver’s license or a prior property tax bill at the address.
Your prior year’s Arizona income tax return (Form 140) to document household income.²
The Affidavit of Individual Tax Exemption (Form 82514), available from the county assessor or the Arizona Department of Revenue.

County naming conventions for the affidavit vary slightly, but these are the core documents everywhere.

When and Where to File

The window opens on the first Monday in January and closes March 1 of the tax year.² File with the assessor in the county where the property sits.

First-time applicants must file in person. Bring original documents so staff can verify them. After your first filing, most counties let you renew by mail using a notarized affidavit.⁵

Your prior-year Arizona income tax return may not be finished by March 1. Counties let you submit it separately, but it must arrive no later than June 30. The affidavit itself still has to be in by March 1.²

You Must Refile Every Year

The affidavit is annual.² Permanent records like your DD-214 stay on file, but you have to re-attest each year that you still meet the income and residency requirements. Once the assessor approves the renewal, the exemption shows up on that year’s tax bill.

Miss March 1 and you forfeit the exemption for the whole year. There is no retroactive filing and no grace period for individual veterans.² A calendar reminder in late December is the simplest safeguard.

If Your Application Is Denied

Ask the assessor for the specific reason first. Common issues include income over the threshold, a missing document, or a property that doesn’t meet the primary-residence rule. Some problems can be fixed within the same filing period.

If you want to contest the decision, you can petition the county Board of Equalization within 25 days of the date the assessor mailed the decision. If that board rules against you, you have 60 days from its mailed decision to appeal in Tax Court.⁶ In Maricopa and Pima counties, there is an additional option to appeal to the State Board of Equalization before heading to Tax Court.⁷ These deadlines are strict.

False Statements Are a Felony

The affidavit is a sworn document. A false statement on it qualifies as perjury under Arizona law.⁸ Perjury is a Class 4 felony in Arizona and can carry prison time.⁹ Misrepresenting income, disability status, or residency to claim the exemption is a criminal matter, not a paperwork problem, so recheck your figures every year you refile.

1
Maricopa County Assessor’s Office. Personal Exemptions – Section: Valuation Relief Programs
2
Cochise County, AZ. Individual / Organization Exemptions
3
Arizona Legislature. Arizona Revised Statutes Title 42-11111 – Exemption for Property Widows and Widowers Persons With Disabilities and Veterans
4
Arizona Legislature. HB 2973 – Property Tax Exemption Income Limit
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