Oregon Disabled Veteran Property Tax Exemption: Amount and Filing

The Oregon disabled veteran property tax exemption lowers the assessed value of a qualifying veteran’s home by $27,092 or $32,512 for the 2026–2027 tax year, depending on whether the disability is service-connected. To qualify, you need a disability rating of 40% or higher and a discharge under honorable conditions. Surviving spouses and registered domestic partners can continue the exemption under certain conditions.

How Much the Exemption Is Worth

The exemption is not a flat cut to your tax bill. It subtracts from the assessed value of your home before the local tax rate is applied, so the actual dollar savings depend on where you live. Oregon sets two tiers.

General disability that is not service-connected, rated 40% or higher: $27,092 off assessed value for 2026–2027.
Service-connected disability rated 40% or higher, certified by the VA or your branch of service: $32,512 off assessed value for 2026–2027.

The gap comes from the underlying statute, which sets a higher base amount ($18,000 versus $15,000) for service-connected disabilities.¹ Both figures increase by 3% each July 1, so the benefit keeps pace with rising values without you having to ask.²

Who Qualifies

Four conditions have to be in place.

A disability rating of 40% or higher from the VA, your branch of service, or, for the lower tier only, from a licensed physician on annual certification.
A discharge or release under honorable conditions.
Oregon residency, with the property serving as your primary home.
Ownership of the home. Buyers under recorded purchase contracts and holders of a life estate count as owners.

The physician-certification path deserves a closer look because it comes with trade-offs. A veteran whose disability has not been certified by the VA or a service branch can use an annual physician’s certification instead, but that route qualifies only for the lower $27,092 exemption and must be renewed every year.¹ If your disability is service-connected, the VA certification is almost always worth pursuing because it unlocks the higher amount and removes the yearly filing burden.

The exemption also reaches personal property at the homestead. If you own manufactured housing or other taxable personal property there, the exemption can apply to it as well.¹

Surviving Spouses and Registered Domestic Partners

The exemption does not end automatically when a veteran dies. A surviving spouse or registered domestic partner who has not remarried or entered a new registered partnership can continue to claim it, and the rules track which tier is in play.

For the higher service-connected tier of $32,512, the survivor qualifies if the veteran died from a service-connected injury or illness, or received at least one year of the maximum exemption after 1981.¹ For the lower $27,092 tier, the survivor can file even if the veteran never claimed the exemption during their lifetime.²

Eligibility ends on the date of any remarriage or new registered domestic partnership. A later divorce does not restore it.

How to Apply

File Oregon Form 150-303-086, the Disabled Veteran or Surviving Spouse Exemption Claim. It is available from the Oregon Department of Revenue or your county assessor.³

Attach the following:

A DD-214 or equivalent military document showing service dates and honorable discharge.
Disability certification: a VA award letter, branch-of-service certification, or, for the lower tier only, a current physician’s certification of a 40% or higher rating.
Trust documents, if the property is held in trust.

The name on the form should match the name on the deed. You will also need your property account number, which appears on prior tax statements and in the county assessor’s public records.²

Submit the packet to your county assessor, not the Department of Revenue. In person or by mail both work. Certified mail gives you a postmark date if you are near the deadline.

Deadlines and Late Filing

The filing window is January 1 through April 1 for the tax year that starts the following July 1. A claim filed by April 1, 2026, applies to your 2026–2027 property taxes.⁴

Two exceptions loosen that date.

If you buy the home after March 1 but before July 1, you have 30 days from the date of acquisition to file.⁴
If you are in the physician-certification category and miss April 1, the county assessor must notify you by April 10. You then have until May 1 to file with a $10 late fee. Miss May 1 and you lose the exemption for that tax year.⁴

There is no general hardship extension. A VA-certified veteran who simply misses April 1 and does not fall into one of the categories above will usually have to wait for the next window.

Do You Have to Refile Each Year

It depends on how your disability is documented.

With VA or branch-of-service certification, you do not need to file again each year as long as your ownership, use of the property, and qualifying conditions do not change. The exemption carries forward.² File again if you move, transfer the property, or if anything changes that affects eligibility.

With a physician’s certification, you must refile every year with updated documentation. Missing that annual filing is a common way veterans in this category lose the exemption without meaning to.⁴

What the Savings Actually Look Like

Because the exemption cuts assessed value rather than taxes owed, the dollar effect depends on your local levy rate. On a home assessed at $250,000, the $32,512 service-connected exemption leaves $217,488 taxable. At a combined levy of $15 per $1,000 of assessed value, that is roughly $488 in annual savings. Higher local rates produce larger savings from the same exemption.

Once the county approves the claim, the reduction shows up on the tax statement mailed in October, with the exemption listed and the adjusted value reflected in the total due.

If you pay taxes through a mortgage escrow account, the monthly payment does not drop on its own. The servicer’s monthly collection is based on the prior year’s bill, so a surplus builds up when your taxes come in lower. Federal rules require your servicer to run an annual escrow analysis and send you a statement within 30 days of the end of your computation year; a surplus is either refunded or applied to reduce future payments.⁵ The timing of that analysis may not line up with when your county approves the exemption, so a call to your servicer after the October statement can move things along.

Other Veteran Property Benefits Not to Confuse With This One

Oregon has a separate property tax exemption under ORS 307.286 for National Guard and reserve members called to federal active duty for 179 or more consecutive days. It started at $60,000 of assessed value in 2005, also grows 3% annually, and has an August 1 filing deadline. It is a different program with different rules, though a veteran who qualifies for both should ask the county assessor whether they can be combined.⁶

On the federal side, a veteran receiving VA disability compensation is exempt from the VA home loan funding fee under 38 U.S.C. § 3729, regardless of rating percentage. This is not part of the Oregon exemption but often applies to the same households and can save thousands on a purchase or refinance.⁷

1
Oregon Public Law. Oregon Code 307.250 – Property of Veterans or Surviving Spouses
2
Oregon Department of Revenue. Disabled Veteran or Surviving Spouse Property Tax Exemption
3
Oregon Department of Revenue. Disabled Veteran or Surviving Spouse Exemption Claim
4
Oregon Public Law. Oregon Code 307.260 – Claiming Exemption
5
Consumer Financial Protection Bureau. 1024.17 Escrow Accounts
6
Oregon Department of Revenue. Oregon Active Duty Military Service Member’s Exemption Claim
7
Office of the Law Revision Counsel. 38 USC 3729 – Loan Fee