What States Are Tax-Free for Disabled Veterans?


Quick Answer

All states except for Missouri, Delaware and Rhode Island offer a form of property tax exemption to disabled veterans, according to Zacks. However, 22 of these states require the veteran to be fully disabled to receive this benefit. Oklahoma also exempts fully disabled veterans from sales taxes.

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Full Answer

Georgia offers exemption from sales taxes to veterans when they purchase certain vehicles using VA grants, according to Zacks. Arkansas exempts the first $6,000 of a veteran's retirement or service pay, and Maryland exempts the first $5,000 of a disabled veteran's pay from state taxation. Often, most federal payments to disabled veterans are exempt from state taxation. Some states, such as Alabama and Kentucky, also offer full tuition for disabled veterans at state or community colleges.

The rules governing exemption from property tax vary from state to state, and Texas offers 100 percent exemption for completely disabled veterans, according to Veterans United. Texas and Utah also have sliding scales of exemption based on the severity of the veteran's disability. On the other hand, some states, such as California, also use property value and income to determine the tax exemptions for a veteran. Fully disabled veterans may receive exemption from property tax in California as long as they do not receive more than $40,000 a year and their property is not worth more than $150,000.

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