Arizona Delivers Full Property Tax Relief for Disabled Veterans

A Longstanding Promise Put Into Law

For Arizona’s most severely disabled veterans, home is more than a place to live — it is often the anchor of stability after a lifetime of service and sacrifice. This week, state lawmakers took a decisive step to protect that stability, approving legislation that delivers full property tax relief to qualifying veterans who are rated 100 percent service-connected disabled.

The measure, sponsored by House Majority Leader Michael Carbone, has now been signed into law following near-unanimous bipartisan support in the Legislature. The action reflects broad agreement that veterans who have given everything in service to their country should not face the risk of being taxed out of their homes.

Closing Gaps and Bringing Clarity

The law was developed in coordination with county assessors after questions arose following last year’s tax omnibus legislation. Lawmakers worked to clarify how exemptions should be applied so that eligible veterans receive the full benefit intended under the law, without confusion or inconsistent implementation across counties.

At the heart of the legislation is a clear directive: veterans rated 100 percent service-connected disabled are entitled to a full property tax exemption on the entire value of their primary residence. The law also specifies that this full exemption applies even when the property is jointly owned, ensuring that shared ownership does not reduce or complicate eligibility.

Protecting Families and Surviving Spouses

The legislation extends protections beyond the veteran alone. Under the new law, a surviving spouse may continue to receive the full exemption as long as the spouse does not remarry. Importantly, the benefit is not tied to a single home for life. If a surviving spouse relocates to another primary residence, the exemption may continue to apply, providing stability during periods of transition and change.

By allowing the exemption to follow the surviving spouse, the law recognizes the long-term impact of service and sacrifice on military families and aims to provide continuity of support even after a veteran’s passing.

Ensuring Fairness and Consistency in the System

The measure also clarifies how income limits apply across the entire section of law governing property tax exemptions and confirms that exemptions may not be combined across categories. These technical changes are designed to bring consistency and certainty for both taxpayers and county assessors responsible for administering the exemptions.

Supporters say this clarity is essential to ensuring the law is applied fairly and predictably, avoiding confusion for families who rely on the exemption and for local officials tasked with implementing the policy correctly.

When Relief Begins

The law takes effect immediately and applies beginning with tax year 2026. Qualifying veterans will see the benefit reflected in their first property tax payments due in October 2026, providing tangible financial relief in the near term.

For many veterans living on fixed incomes, property taxes can be a significant burden. Supporters say the exemption offers meaningful relief that can help preserve homeownership and provide peace of mind to those who have already paid a high personal price in service to the nation.

A Message About Who Arizona Honors

By enacting this measure, lawmakers are sending a message about priorities: that preserving homeownership for severely disabled veterans and their families is a matter of principle, not politics. The legislation reinforces a broader commitment to honoring service in practical ways — not just through words, but through policies that deliver real, measurable support to those who have earned it.