Do Disabled Veterans Pay Property Tax in Arizona?

Last updated August 20, 2026. Statute from the chaptered bills at azleg.gov; county process from the Maricopa and Pinal county assessors the same day.

Which Arizona veterans get the full property tax exemption?

A.R.S. 42-11111(C) fully exempts the primary residence of a veteran with a 100 percent service-connected rating from the United States Department of Veterans Affairs. A veteran with a lower service-connected rating, or a nonservice-connected disability, falls under subsection D instead, which is a fixed dollar exemption multiplied by the rating percentage.

SB 1749 (2025, Chapter 247, approved by the Governor June 27, 2025) added subsection C. Subsection D, the older percentage-based exemption, sits at $4,188 in statute, indexed annually by the Arizona Department of Revenue. The Maricopa County Assessor lists it at up to $4,873 for 2026.

The two are exclusive: the statute says an individual is not entitled to exemptions under more than one subsection even if eligible under more than one.

Is the Arizona disabled veteran property tax exemption new for 2027?

No. The full exemption at a 100 percent service-connected rating has been in statute since 2025 and is live for tax year 2026, which lands on the fall 2026 tax bill. Two separate 2026 bills changed A.R.S. 42-11111, and they take effect in two different tax years.

The first is HB 2792 (Chapter 2, approved by the Governor February 12, 2026), an emergency measure applying to tax years beginning from and after December 31, 2025. That is tax year 2026. A primary residence owned by an eligible veteran and the veteran's spouse is treated as owned solely by the veteran, and a surviving spouse may continue the full exemption on their own primary residence.

The second is HB 4168 (Chapter 140), the 2026-2027 tax omnibus approved by the Governor June 13, 2026, a broad revenue bill touching insurance, income tax, and property tax. Its Section 34(B) applies the A.R.S. 42-11111 changes to tax years beginning from and after December 31, 2026, which is tax year 2027.

Reading only the 2027 headline is how a veteran who already qualifies for tax year 2026 waits a year for a benefit already running.

Do income limits apply to the Arizona veteran property tax exemption?

For tax year 2026, yes. The Maricopa County Assessor states that income qualifications apply to all applicants, including those seeking the 100 percent service-connected disabled veteran exemption. The 2026 limits are $39,865 with no children under 18 in the home and $47,826 with children under 18 or a disabled child.

What counts as income is narrower than it sounds. The Maricopa County Assessor states that income does not include Social Security benefits, military pensions, or veterans' disability payments. A.R.S. 42-11111 reaches the same result, excluding social security act payments, veterans pensions, railroad retirement, workers' compensation, and unemployment from income from all sources.

For tax year 2027, HB 4168 narrows the income test to subsection E: widows, widowers, and persons with a total and permanent disability. Veterans and surviving spouses come out from under the cap that year. The cap still binds for tax year 2026.

How do you apply for the Arizona veteran property tax exemption in Maricopa County?

You file a Personal Exemption Application with the Maricopa County Assessor. The county states applications are due by February 28, or by September 1 with an approved Exemption Deadline Waiver, for the current year. Filing between March 1 and September 1 requires that waiver alongside the application.

For the 100 percent service-connected program, the Assessor lists this documentation:

1. Personal Exemption Application.
2. Copy of proof of primary residency.
3. Copy of income documentation.
4. Copy of the Veterans Affairs letter showing percentage of disability.
5. Exemption Deadline Waiver, if filing March 1 through September 1.

A.R.S. 42-11153(A) says failing to file between the first Monday in January and March 1 waives the exemption. Subsection B lets the county board of supervisors redeem that waiver, with one limit: taxes due and payable before the petition was submitted may not be refunded or abated. Late has a cost even when late is allowed.

What we found reading two county assessor pages on the same day

On August 20, 2026 we read the Maricopa and Pinal county assessor pages back to back. They do not describe the same program. One publishes a September 1 waiver window and one does not. One says the assessed value cap does not apply to veterans, and the other prints a cap on its veterans page.

The Pinal County Assessor's veterans page gives the filing window as the first Monday in January through the last day of February, requires first-time applicants to apply in person, allows later filings by mail with a Notary Public, and caps total net assessed valuation in Arizona at $36,454. Maricopa County's 2026 Personal Exemption Application states the opposite: the assessed limited property value limit does not apply to veterans' exemption programs.

The takeaway is not that one county is right. A statewide answer read off any single page is the wrong answer for somebody. Call the assessor in the county where the home sits and ask for the current-year form and deadline.

What happens to the exemption if you sell the house and buy another one?

Conveyance of title to another owner is a disqualifying event under A.R.S. 42-11111. The exemption does not travel with you today. Starting in tax year 2027, HB 4168 adds a transfer form: the person must file a completed exemption transfer form with the assessor of the county where the new primary residence sits within 60 days.

The 60 days runs from the day the subsequent home becomes the person's primary residence, not from the closing date. The form is prescribed by the Arizona Department of Revenue.

That is a calendar item, not a closing document. It belongs on the move plan, because the 60 days runs whether or not anyone mentions it at signing. A current home valuation and a written sale timeline make that window easy to hit.

Frequently asked questions

Do 100 percent disabled veterans pay property tax in Arizona?

Not on their primary residence, if the county assessor approves the exemption. A.R.S. 42-11111(C) fully exempts the primary residence of a veteran with a 100 percent service-connected disability rating. It is claimed by filing an affidavit with the county assessor, not granted automatically.

What is the deadline to apply in Maricopa County?

The Maricopa County Assessor states applications are due by February 28, or by September 1 with an approved Exemption Deadline Waiver, for the current year. Applications may be submitted from the first Monday in January through February 28, or from March 1 through September 1 when accompanied by the waiver.

Does Total Disability based on Individual Unemployability count?

For tax year 2026 the Maricopa County Assessor states that the combined service-connected rating, not the compensation amount, is the controlling factor. HB 4168 writes total disability based on individual unemployability into A.R.S. 42-11111(C) for tax years beginning from and after December 31, 2026.

Can a surviving spouse keep the exemption?

A.R.S. 42-11111(C) lets the surviving spouse of a veteran whose primary residence is receiving the exemption continue to claim the full exemption for the surviving spouse's primary residence as long as the surviving spouse does not remarry. The county assessor makes that determination on the filed application.

Planning a move around an exemption you already hold

Nothing here is legal or tax advice, and no one should read it as a statement that they qualify. The statute is A.R.S. 42-11111 and A.R.S. 42-11153 at azleg.gov.

Josh Hogan and the Live AZ Co team work Gilbert, Chandler, Mesa, Tempe, Queen Creek, San Tan Valley, and Scottsdale, and a move across the Maricopa and Pinal county line changes which office holds your file. For a sale, start with a conversation about the sequence, or read how we run a listing.

Josh Hogan | Live AZ Co | Real Broker AZ, LLC #LC696641000 | Equal Housing Opportunity