PA Veteran Property Tax Exemption 2026 – Apply Now 2026 Pennsylvania Veteran Property Tax Exemption Guide

Pennsylvania Veteran Property Tax Exemption 2026

The Pennsylvania veteran property tax exemption for 2026 provides 100% real estate tax relief on a primary residence for veterans with a total and permanent service-connected disability rating from the VA. Effective January 1, 2025, the presumptive income need level was raised to $114,637, making it easier for more veterans to qualify . The exemption is currently limited to veterans who served during a wartime period, but pending legislation proposes expanding eligibility to all 100% disabled veterans regardless of when they served . To apply, contact your County Director of Veterans Affairs for forms MA-VA 40 and MA-VA 41 .

Quick Facts

What Is the Pennsylvania Veteran Property Tax Exemption?

The Pennsylvania veteran property tax exemption is a program authorized by the state Constitution that allows qualifying disabled veterans to avoid paying real estate taxes on their primary residence . It is administered by the Pennsylvania Department of Military and Veterans Affairs (DMVA) through the State Veterans’ Commission, and applications are processed at the county level .

How the Program Works

The exemption removes the obligation to pay real estate taxes (school, county, and municipal) on the building and land of your primary residence. It does not eliminate the tax liability but rather grants an exemption from having to pay it. The exemption applies if you meet specific service, disability, and financial need requirements.

Why This Benefit Matters

For a 100% disabled veteran in Pennsylvania, the average annual property tax bill can be several thousand dollars. The exemption can save qualifying veterans up to 100% of that cost, providing critical financial relief. With the 2026 income need level set at $114,637, more veterans are eligible under the financial need test than in previous years .

2026 Eligibility Requirements

To qualify for the Pennsylvania veteran property tax exemption, you must meet the following criteria :

Service Requirements:

• Resident of the Commonwealth of Pennsylvania

• Honorably discharged or released under honorable conditions from the U.S. Armed Forces

• Served during a period of war (this is the key limitation of the current program)

Disability Requirements:

• 100% permanent and total service-connected disability rating from the VA OR

• 100% disability rating through Total Disability Individual Unemployability (TDIU) OR

• Service-connected blindness, paraplegia, or loss of two or more limbs

Property Requirements:

• The property must be your primary residence (principal dwelling)

• The property must be owned solely by you, jointly with a spouse, or as an estate by the entirety

Financial Need Requirements:

• Annual income of $114,637 or less (presumptive need level as of January 1, 2025) 

• If income exceeds the threshold, you must demonstrate that allowable monthly expenses exceed monthly household income

Income Definition

For this program, “income” includes wages, pensions, Social Security payments, dividends, gambling earnings, and other sources. If a spouse is included on the property deed, their income is only considered if the veteran earns more than the income threshold .

What the 2026 Legislative Changes Mean

There are significant changes in progress for 2026 that veterans should be aware of.

The “Wartime Service” Requirement

Currently, you must have served during a war or armed conflict to qualify. This requirement has been a barrier for veterans who served during peacetime periods. House Bill 1257, which passed the PA House in March 2026 with a 193-6 vote, proposes a constitutional amendment to remove this wartime service requirement .

What this means for you: If the amendment passes the Senate and is approved by voters, all 100% disabled veterans—regardless of when they served—will be eligible for the exemption, provided they meet other criteria.

Proportional Exemption for Lower Ratings

Another key proposal in House Bill 1257 would allow counties and school districts to grant proportional property tax relief to veterans with disability ratings below 100% . While not guaranteed for the whole state, individual municipalities could pass ordinances to provide relief to veterans with 50-90% ratings.

House Bill 1119 proposes a proportional exemption with a rating of 10% to 90%, where the exemption amount matches the disability percentage .

Surviving Spouse Provisions

Both the current program and pending legislation provide for the exemption to continue for unmarried surviving spouses of eligible veterans. The proposed constitutional amendment would guarantee this benefit for surviving spouses of veterans who died in the line of duty, were taken as prisoners of war, or declared missing in action .

How to Apply for the Exemption

Step 1: Contact Your County Director of Veterans Affairs

Applications are handled at the county level. Contact the County Director of Veterans Affairs in the county where your residence is located . Many counties offer electronic pre-application by email.

Step 2: Complete Required Forms

You will need two forms:

• MA-VA 40 (Application for Determination of Need for Exemption) for veterans OR

• MA-VA 40ss (Application for Determination of Need) for surviving spouses

• MA-VA 41 (Information Needed by County Tax Assessment Office for Disabled Veterans Property Tax Exemption) 

Forms should be requested from the County Director of Veterans Affairs or the Bureau for Veterans’ Affairs, Fort Indiantown Gap .

Step 3: Gather Supporting Documentation

Step 4: Notarize and Submit

• Complete MA-VA 40/40ss and have it notarized

• Attach copies of DD214, VA award letter, and income documentation

• Send the completed package to the State Veterans’ Commission at Fort Indiantown Gap 

Step 5: Continue Paying Taxes Until Approved

The State Veterans’ Commission determines financial need by comparing your income against allowable monthly expenses, which are calculated using a cost-of-living allowance . You are responsible for continuing to pay your property taxes until the exemption is officially granted .

Real Estate Tax Exemption – Income Need Table

Common Mistakes to Avoid

1. Not applying because you think your income is too high — The threshold increased to $114,637 in January 2025. If you exceed this, you can still qualify by documenting your expenses .

2. Failing to continue paying taxes during processing — You must keep paying until approved; you may receive a refund for overpaid taxes after approval.

3. Forgetting to update your county assessment office — The county tax assessment office must have MA-VA Form 41 on file for the exemption to be applied .

4. Assuming all veterans qualify automatically — The exemption requires the State Veterans’ Commission’s approval of both disability status and financial need.

5. Not including spouse income on the application — If you file jointly, all income must be declared, although a spouse’s income is not considered for the income need test unless you earn more than the threshold .

Common Questions

1. Do I need to have served in combat to qualify?

Yes, under current Pennsylvania law, you must have served during a war or armed conflict to be eligible . However, the PA House passed a constitutional amendment in March 2026 that would remove this requirement. If the amendment passes the Senate and is approved by voters, this requirement will be eliminated .

2. What is the income limit for the property tax exemption?

The presumptive need level is $114,637 in annual income. If your income is below this amount, you are presumed to have financial need. If above, you can still qualify by showing that your monthly expenses exceed your income .

3. Does the exemption apply to all property taxes, including school taxes?

Yes. The exemption applies to “all real property taxes imposed by the Commonwealth or any of its political subdivisions,” which includes school, county, and municipal property taxes .

4. Can a surviving spouse receive the exemption?

Yes. Unmarried surviving spouses of eligible veterans are covered. Under pending legislation, surviving spouses of those who died in the line of duty, were taken as prisoners of war, or declared missing in action would be guaranteed coverage until remarriage .

5. What forms do I need to apply?

You need MA-VA 40 (veteran) or MA-VA 40ss (surviving spouse) and MA-VA 41. Contact your County Director of Veterans Affairs to get these forms .

6. What if I have a disability rating below 100%?

Currently, the full property tax exemption requires a 100% rating. However, House Bill 1257 and House Bill 1119 propose allowing counties to grant proportional exemptions for veterans with ratings as low as 10% . These bills are pending as of August 2026.

7. Where do I submit my application?

Submit your notarized MA-VA 40 and supporting documents to the State Veterans’ Commission, Fort Indiantown Gap, Annville, PA 17003-5002 . However, the application process is typically initiated through your County Director of Veterans Affairs .

8. How long does the application take?

There is no fixed processing time. The State Veterans’ Commission determines financial need and makes a determination. Your county assessment office is then notified of the exemption . It is recommended to apply as early as possible after receiving your 100% rating.

9. Does a spouse’s income count toward the income limit?

A spouse’s income is only considered if you file taxes jointly or if your income exceeds the threshold. If you earn more than the income limit, the spouse’s income will be considered as part of the total .

10. Can I get a refund for taxes paid before approval?

You are responsible for paying taxes until the exemption is granted. Once approved, the exemption applies from the effective date determined by the State Veterans’ Commission . Refunds for overpaid taxes would be determined by your local tax authorities.

Key Takeaways

• 100% exemption available — Qualifying veterans with a permanent and total service-connected disability are exempt from all real estate taxes on their primary residence .

• Income threshold increased to $114,637 — The 2026 presumptive need level makes it easier to qualify for financial need .

• Wartime service requirement — Currently required, but a proposed constitutional amendment would eliminate this barrier .

• Surviving spouses may qualify — The exemption continues for unmarried surviving spouses of eligible veterans .

• Pending legislation could expand eligibility — House Bill 1257 passed the PA House with broad support and would allow counties to grant proportional exemptions for veterans with ratings below 100% .

• Apply through your County Director of Veterans Affairs — This is the starting point for the application process .

• Required forms — MA-VA 40 and MA-VA 41 are the core application forms; keep paying taxes until approved .

• Financial need must be proven — Veterans with income above the threshold must demonstrate that expenses exceed income .

• Service must be honorable — The exemption requires an honorable or under honorable conditions discharge .

• Stay updated on legislative changes — The proposed constitutional amendment remains under consideration in the state Senate as of August 2026 .

Official Resources

• Pennsylvania DMVA — Real Estate Tax Exemption: www.pa.gov/agencies/dmva/pennsylvania-veterans/pa-vetconnect/state-veterans-programs/financial-assistance/retx 

• Pennsylvania General Assembly Bill Information: HB 1257 — www.palegis.us/legislation

• Find Your County Director of Veterans Affairs: Contact through county government website

• Pennsylvania DMVA: www.pa.gov/agencies/dmva

• VA.gov: www.va.gov — For obtaining your VA disability rating letter

• Veterans Crisis Line: 988 (press 1) — 24/7 confidential support

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See also

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