Every state treats a disabled veteran differently on property taxes, and your rating decides which rung of the ladder you stand on. Pick your state and your VA rating and get the answers that matter on a purchase: what you get, when it starts, whether it shows up at closing, and how lenders handle it when you qualify.
Your county matters too. Where amounts or deadlines change county by county, the breakdown below calls it out.
Every rating gets an answer, even where the answer is that your state offers nothing yet.
A 100% schedular rating comes from the rating table. Permanent and Total means the VA does not expect the condition to improve. TDIU pays at the 100% rate because you cannot work, even though the combined rating is lower. Some states accept all three, and some only accept one or two. Your state's card above spells out which ratings its law actually names, so match it against your VA rating letter before you count on the exemption.
Any veteran receiving VA disability compensation is exempt from the VA funding fee, which runs 2.15% to 3.3% on a no-down purchase. On a $400,000 loan that is $8,600 or more that never gets added to your balance. Between the funding fee exemption and a property tax exemption, a 100% disabled veteran's payment can land hundreds of dollars below what a standard quote shows. Make sure any quote you get reflects both.
If you close with full taxes in your escrow account and the exemption is granted later, the money is not lost. The county adjusts or refunds the tax bill, your servicer runs an escrow analysis, and the overage comes back to you as a refund check while the monthly payment drops. You can also ask your servicer to rerun the analysis as soon as you have the exemption approval in hand instead of waiting for the annual review.
The single most expensive mistake on this page is waiting. Most states take a short form and a copy of your VA rating letter, filed once with the county assessor or the state tax office. File the week you get the keys. In states with proration, that starts the exemption immediately. In states with a January 1 rule, it makes sure you do not miss the next window, because missing one deadline can cost a full year of taxes.
A licensed loan officer who works VA files every day can quote your payment with the exemption and the funding fee waiver both applied, and tell you exactly how underwriting will treat the taxes in your state.
This page is an educational summary, not legal or tax advice, and not a loan approval. Property tax law changes every legislative session, and counties administer the details, so confirm the current rule with your county assessor or state tax office before you count on a number. How property taxes are treated in loan qualifying is decided by each lender's underwriting, not by this page. Confirm your numbers with a licensed loan officer before making decisions.
Exemption rules are drawn from each state's statutes, department of revenue or tax commission guidance, and state veterans affairs offices, current as of August 2026. The links above go to the official source for the state shown.