Arizona has significantly widened its property tax break for disabled veterans, signing a bipartisan bill this year that strips away limits that previously kept some veterans from qualifying for full relief. Gov. Katie Hobbs signed SB1749 in February, and the law took effect for the 2026 tax year, according to KJZZ.
What the Law Does
The exemption itself isn''t new: Arizona has long offered property tax relief to veterans with a 100% VA service-connected disability rating. What changed is who can actually use it. SB1749 eliminates the assessed property value limitation that previously capped which homes qualified, and it excludes veterans'' pension payments from the income calculation used to determine eligibility for the exemption''s income cap, per reporting from KJZZ. In practice, that means veterans who were previously priced out of the benefit, either because their home''s assessed value was too high or because pension income pushed them over the line, can now qualify for a full exemption on their primary residence.
Surviving spouses of qualifying veterans can continue to claim the exemption as well, provided they don''t remarry.
Bill sponsor Rep. Michael Carbone (R-Buckeye) framed the change simply: the goal is to keep veterans from being taxed out of the homes they''ve earned. The bill passed both chambers of the Arizona Legislature with near-unanimous, bipartisan support before reaching the governor''s desk.
Who''s Eligible Now
To qualify, a veteran must have a 100% service-connected disability rating from the U.S. Department of Veterans Affairs, including those rated through Total Disability based on Individual Unemployability (TDIU). The exemption applies to a primary residence. Because eligibility rules and application steps are administered at the county level, veterans should confirm current requirements with their county assessor''s office before applying.
More Relief on the Horizon
The changes don''t stop in 2026. Additional legislation set to phase in for 2027 will eliminate income limits entirely for the disabled veteran and surviving spouse exemption program, decoupling eligibility from household income altogether. Combined with the 2026 changes, Arizona is moving toward a system where a veteran''s 100% disability rating, not their income or their home''s value, is what determines whether they keep their full property tax exemption.
Operation WarriorFit tracks changes like these in its Arizona veteran benefits guide to help veterans and their families stay current as new rules take effect.
Easing the financial pressure on disabled veterans is part of the same mission that drives Operation WarriorFit''s work covering race entry fees. If you''re a veteran, active-duty service member, or first responder in Arizona, you can check your eligibility for a free race entry of your own.