New York’s 2026 Law Creates a 100% Property Tax Exemption for Permanently Disabled Veterans
New York enacted Chapter 77 of the Laws of 2026, creating a new property tax exemption for veterans with a 100% permanent and total service-connected disability . This exemption applies to assessment rolls based on taxable status dates on or after October 1, 2026 . However, the 2026-2027 state budget later amended the law to restore local discretion for school districts . Veterans rated 100% permanently and totally disabled should apply through their municipal assessor once the application forms become available .
Quick Facts
| Item | Details |
|---|---|
| Benefit | Full 100% exemption from property tax on primary residence |
| Eligibility | Veterans with a 100% permanent and total service-connected disability rating |
| Application | Submit Form RP-458-a through your municipal assessor |
| Application Deadline | March 1 in most communities (confirm with assessor)Â |
| Official Agency | Municipal Assessor’s Office; NYS Department of Taxation and Finance |
| Required Forms | RP-458-a, DD-214, VA disability rating letter |
| Effective Date | Assessment rolls based on taxable status dates on or after October 1, 2026Â |
What Is New York’s New 100% Disabled Veteran Property Tax Exemption?
New York’s 2026 legislation creates a property tax exemption for veterans with a 100% permanent and total service-connected disability. This exemption provides complete relief from property taxes on a veteran’s primary residence.
What the law does: The exemption applies to assessment rolls based on taxable status dates on or after October 1, 2026 . It eliminates all property taxes on the qualifying veteran’s home, providing significant annual savings.
Who qualifies: Veterans who are considered by the U.S. Department of Veterans Affairs to have a permanent and total disability as a result of military service . The VA must provide documentation confirming this rating.
Why it matters:Â Property taxes in New York can be substantial, particularly in high-cost areas like New York City, Long Island, and Westchester County. This exemption can save qualifying veterans thousands of dollars annually.
What veterans should do next: Confirm your eligibility with your municipal assessor and watch for the application forms, which are still being finalized .
The 2026 Legislative Changes: A Timeline
Chapter 77 of the Laws of 2026 (Signed February 13, 2026)
This legislation, introduced as Senate Bill S.8803 by Senator Addabbo, created the mandatory 100% property tax exemption for permanently disabled veterans . The law initially required localities to provide the exemption without local discretion .
Veterans May Qualify for Extra Benefits
Check available financial assistance, healthcare programs and other opportunities that may apply to you.
Check EligibilityKey provisions:
Full property tax exemption for veterans with 100% service-connected disability
The exemption cannot reduce taxable value below zero
Applies to assessment rolls with taxable status dates on or after October 1, 2026
Does not discontinue any other property tax exemption the veteran is currently receivingÂ
Part EE of Chapter 59 of the Laws of 2026 (State Budget Amendment)
The 2026-2027 New York State Budget amended the law to restore local discretion for school districts . This reversal means school districts must now adopt a resolution to provide the exemption rather than implementing it automatically.
Key changes:
School districts may offer the exemption only if the governing body adopts a resolution
The exemption is no longer automatic for school districts
School districts that adopt the exemption must notify the Department of Veterans’ Services within 30 days
The amendment applies to assessment rolls based on taxable status dates on or after October 1, 2026Â
Eligibility clarification: Individual veterans must have been discharged under qualifying conditions and must produce VA documentation showing the Department considers them permanently and totally disabled as a result of military service .
How the 100% Exemption Works With Local Property Taxes
New York property taxes are assessed and collected locally. The new 100% exemption is handled through your municipal assessor’s office . Because the exemption eliminates the assessed value of the property, the dollar savings depend on local tax rates.
Important distinction:Â The 100% exemption is separate from the Alternative Veterans Exemption. Veterans who qualify for the 100% exemption may not need the Alternative Veterans Exemption. The law states the 100% exemption must not discontinue any other property tax exemption the veteran is already receiving under RPTL Sec. 458(3)Â .
What to do:Â Check with your local assessor to understand how the new exemption interacts with any existing exemptions you may have.
Other New York Veteran Property Tax Exemptions
While the new 100% exemption is the most significant change, New York offers several other property tax benefits for veterans.
Alternative Veterans Exemption
The Alternative Veterans Exemption is New York’s most widely used property tax break for veterans . It provides a three-part benefit:
| Benefit | Reduction | Maximum Cap |
|---|---|---|
| Wartime service | 15% of assessed value | Varies by locality |
| Combat zone service | Additional 10% of assessed value | Varies by locality |
| Service-connected disability | 50% of disability rating | Varies by locality |
Important: This is a local-option benefit. Counties, cities, towns, villages, and school districts choose whether to offer it . It applies only to a veteran’s primary residence .
Cold War Veterans Exemption
Veterans who served during the Cold War period (September 2, 1945, to December 26, 1991) may qualify for this exemption . It is also locally optional.
Eligible Funds Exemption
This exemption applies to property purchased with pension, bonus, or insurance monies . It provides a partial exemption with a cap.
Proposed: Two-Veteran Household Exemption
Legislation (A02631) has passed the Assembly that would provide an additional exemption when two qualified veterans reside in the same household . This bill would allow municipalities to offer an exemption of up to 7.5% of assessed value (capped at $6,000) for households with two qualifying veterans . As of June 2026, this bill was referred to the Senate Rules Committee .
Proposed: Classified Mission and Submarine Service
The Senate has passed legislation (S.1788) that would expand the Alternative Veterans Exemption to include veterans who served on classified missions or aboard submarines during periods of war . Under current law, many veterans cannot prove combat zone service due to classified assignments. This bill would provide a 10% property tax reduction for these veterans .
How to Apply for the New 100% Exemption
Step 1: Gather Required Documentation
You will need:
VA disability letter showing a permanent and total disability rating of 100%
DD-214Â or other proof of honorable discharge
Proof of ownership of the property
Proof of primary residence (driver’s license, voter registration)
Step 2: Complete the Application
The application for the Alternative Veterans Exemption is Form RP-458-a, Application for Alternative Veterans Exemption from Real Property Taxation . For the new 100% exemption, a separate form is being developed and will be posted on the NYS Department of Taxation and Finance website when available .
Step 3: Submit to Your Municipal Assessor
Submit your application to your municipal assessor’s office, not the state . In most communities, the deadline is March 1 . Confirm the exact deadline with your assessor.
Step 4: Wait for Processing
Once approved, the exemption will continue automatically in future years. If you move or your disability rating changes, you must reapply .
Common Questions
What is the new 100% disabled veteran property tax exemption in New York for 2026?
New York’s Chapter 77 of the Laws of 2026 created a full property tax exemption for veterans with a 100% permanent and total service-connected disability . It applies to assessment rolls based on taxable status dates on or after October 1, 2026 .
Is the 100% exemption automatic?
No. You must apply through your municipal assessor’s office . However, the law initially made the exemption mandatory for school districts, though the 2026-2027 budget restored local discretion for school districts .
When does the new 100% exemption take effect?
The exemption applies to assessment rolls based on taxable status dates on or after October 1, 2026 . Application forms are still being finalized .
Do school districts have to offer the 100% exemption?
Following the 2026-2027 state budget amendment, school districts must adopt a resolution to provide the exemption . The exemption is no longer automatic for school districts.
What if I already receive the Alternative Veterans Exemption?
The new 100% exemption should not discontinue any other property tax exemption you are currently receiving under RPTL Sec. 458(3)Â . Check with your assessor about how the exemptions interact.
What documentation do I need to apply?
You need VA documentation showing a permanent and total 100% disability rating and proof of honorable discharge (typically DD-214)Â .
What is the application deadline?
In most New York communities, the deadline is March 1Â . Confirm with your municipal assessor, as dates vary in some cities and counties.
Does the exemption apply to co-ops and condos?
Yes, the Alternative Veterans Exemption can apply to cooperative apartments if the municipality has adopted it . The 100% exemption likely follows similar rules.
What if I have a service-connected disability but not 100%?
You may still qualify for the Alternative Veterans Exemption, which provides a disability-related reduction equal to 50% of your disability rating .
What is the status of the bill for two veterans in one household?
Assembly Bill A02631 passed the Assembly and was referred to the Senate Rules Committee . It would allow an additional exemption for households with two qualifying veterans. Check the New York State Senate website for current status.
Key Takeaways
New York’s 2026 law creates a 100% property tax exemption for veterans with permanent and total service-connected disabilities .
The effective date is October 1, 2026, applying to assessment rolls based on taxable status dates on or after that date .
School districts now have local discretion following the 2026-2027 state budget amendment and must adopt a resolution to offer the exemption .
Application forms are still being finalized by the NYS Department of Taxation and Finance .
Apply through your municipal assessor’s office, not the state . The deadline is March 1 in most communities .
The Alternative Veterans Exemption remains available for veterans with lower disability ratings .
Legislation is pending to expand exemptions for two-veteran households and for veterans who served on classified missions or submarines .
If you move or your disability rating changes, you must reapply .
Official Resources
New York State Department of Taxation and Finance: www.tax.ny.gov — Official exemption information and forms
NYS Department of Veterans’ Services: veterans.ny.gov — Assistance with benefits and applications
New York State Senate: www.nysenate.gov — Legislation text and status
U.S. Department of Veterans Affairs: www.va.gov — Obtain your disability rating letter
National Personnel Records Center: www.archives.gov — Obtain military service records
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