Exemptions for veterans with disabilities
Tiered by service-connected disability rating, and at the top tier the property can be fully exempt.
Illinois provides some of the most substantial property tax relief in the system to veterans with service-connected disabilities, and it scales with the disability rating.
The standard homestead exemption for veterans with disabilities
Under 35 ILCS 200/15-169, relief is tiered by the service-connected disability rating:
| Rating | Relief |
|---|---|
| 30% to 49% | $2,500 of equalised assessed value |
| 50% to 69% | $5,000 of equalised assessed value |
| 70% or more | Fully exempt from property tax |
The 70% tier is a total exemption, not a reduction. It is among the most valuable benefits available to any Illinois homeowner.
Who qualifies
- An Illinois resident who served in the armed forces
- With a service-connected disability certified by the U.S. Department of Veterans Affairs
- Who owns and occupies the property as a principal residence
There are limits on the value of the property for the full exemption, which are revised, so check the current figure.
The rating can change, and so should the exemption
This is the most commonly missed part. A disability rating can be increased on review or on appeal to the VA. When it is, the exemption tier should move with it.
Nothing connects the two automatically. A veteran whose rating rises from 60% to 70% moves from a $5,000 reduction to a full exemption — and will keep paying unless somebody tells the county.
If your rating has ever been revised upward, check what exemption is on your bill against what tier your current rating supports.
Surviving spouses
A surviving spouse may continue the exemption in defined circumstances, and may in some cases carry it to a new residence. This is among the most missed benefits in the entire system, because it must be claimed at the worst possible time and nobody raises it.
If you are the surviving spouse of a veteran who held this exemption, ask the assessor's office directly what continues and what must be re-applied for. Do not assume it lapsed.
Other veteran relief
Illinois also provides a returning veterans' exemption — a one-time reduction in the year of return from active duty — and a specially adapted housing exemption for homes adapted with federal assistance. Both are separate applications.
Beyond Illinois
Veteran relief is generous in many states and the structures differ. Texas exempts a 100% service-connected disabled veteran's residence homestead entirely (Tex. Tax Code § 11.131). Florida provides a total exemption for total and permanent service-connected disability (Fla. Stat. § 196.081) and a percentage discount tied to the rating. California's disabled veterans' exemption reaches $175,000 of assessed value.
If you have moved between states, do not assume the relief you had transfers. It generally does not, and it generally has to be claimed afresh.
What to do
- Check what exemption, if any, is currently on your bill.
- Check it against your current VA rating — not the rating you had when you first applied.
- Apply or update through your county, with the VA certification.
- Ask whether a missed year can be recovered by certificate of error.