Connecticut Veteran Tax Exemption FY 2026: Apply by January 1

Connecticut’s FY 2026 Disabled Veteran Property Tax Exemption: Full Guide

Connecticut’s new property tax exemption for veterans with a 100% permanent and total (P&T) service-connected disability rating takes effect for fiscal year 2026 . The exemption applies to assessment years commencing on or after October 1, 2025 . Qualifying veterans must file Form D-2 and a current VA disability letter with their town assessor by January 1 of each year to receive the exemption on their July tax bill .

Quick Facts

What Is Connecticut’s 100% Disabled Veteran Property Tax Exemption?

Connecticut passed legislation (Public Act 24-46) to provide a full property tax exemption for veterans with a permanent and total (P&T) service-connected disability rating of 100% . The law took effect for assessment years starting October 1, 2025, meaning the exemption first appears on tax bills for fiscal year 2026 .

What the exemption covers: The exemption applies to either (1) a dwelling the veteran owns and occupies as a primary residence, or (2) if the veteran does not own a dwelling, one motor vehicle they own and garage in the state . If the veteran owns neither, the exemption may apply to a spouse’s dwelling or vehicle if they live together .

Why it matters: This exemption eliminates property taxes on the veteran’s home, saving qualifying veterans thousands of dollars annually on their primary residence.

What veterans should do next: File Form D-2 with your town assessor by January 1, 2026, along with a current VA disability letter . The disability letter must be dated within the last six months .

Eligibility Requirements

Who Qualifies for the 100% Exemption

To qualify for Connecticut’s 100% disabled veteran property tax exemption, you must meet all of the following:

• VA disability rating: 100% permanent and total (P&T) service-connected disability rating 

• Military service: Served in the Army, Navy, Marine Corps, Coast Guard, Air Force, or Space Force of the United States 

• Residency: Must be a resident of Connecticut

• Property ownership: Must own and occupy the dwelling as your primary residence, OR own a motor vehicle garaged in Connecticut (if you do not own a residence) 

TDIU (Individual Unemployability)

Veterans who have been determined by the VA to have a service-connected total disability based on individual unemployability (TDIU) may also qualify for the exemption . Some towns, such as Bethany, have adopted local ordinances extending the exemption to TDIU veterans .

Surviving Spouses

Municipalities may also provide the exemption to the surviving spouse of a veteran who had a service-connected total disability based on TDIU and died prior to October 1, 2025, as long as the spouse remains unmarried .

Local Option Features: What Towns Can Add

Connecticut’s 100% disabled veteran exemption includes several local option features. Towns may, upon approval of their legislative body, choose to:

1. Include up to 2 acres of land
Towns may exempt up to two acres of the lot upon which the dwelling sits . For example, the Town of Old Lyme has adopted this option but caps the total exemption at the median residential assessment .

2. Cap the exemption at median assessed valuation
Towns may limit the total exemption amount to the median assessed valuation of residential real property in that municipality . This cap means that in high-value towns, veterans may still receive the exemption but only up to the median home value.

3. Extend to surviving spouses of TDIU veterans
Towns may choose to extend the exemption to surviving spouses of veterans who had a TDIU determination and died prior to October 1, 2025 .

How to Apply

Step 1: Gather Required Documentation

You will need:

• VA disability letter showing you have a 100% permanent and total service-connected disability rating 

• The letter must be dated within the last six months 

• Form D-2, the application form prescribed by the Office of Policy and Management (OPM) 

• Attestation that you have not and will not claim this exemption in another Connecticut town 

Step 2: Submit to Your Town Assessor

File your application with your town assessor’s office. Important: State statute requires the disability paperwork and application to be received by January 1. Because January 1 is a holiday, any application not received by 4:30 PM on December 31 is considered late and the exemption cannot be applied . Postmarks do not count as timely filing .

Step 3: Initial Filing vs. Annual Renewal

Initial filing (first-time applicants):

• Must file by January 1 of the assessment year

• Must provide all required documentation

Annual renewal:

• Veterans must reapply annually by January 1 

• An application and current disability letter (less than 6 months old) are required each year 

• If there is no change to your disability determination, the VA letter must still be provided annually 

Step 4: If You Missed the Deadline

Veterans who were unable to submit evidence of their VA determination on time may apply to the tax collector not later than one year after obtaining such proof . The abatement or refund may be granted retroactively to include the assessment day next succeeding the date as of which the veteran was entitled to the VA determination, but no more than three years .

Other Connecticut Veteran Property Tax Benefits

While the 100% P&T exemption is the most generous, Connecticut offers several other property tax benefits for veterans .

Wartime Veterans Exemption

Municipalities must provide a $1,000 basic exemption to qualified wartime veterans . An income-based exemption is also available, ranging from $500 to $2,000 depending on income .

Disability Rating Exemption

Veterans with VA disability ratings as low as 10% may qualify for a graduated exemption:

• 10% rating: $2,000 basic exemption 

• 75%+ rating or age 65+: $3,500 basic exemption 

• Additional amounts for severe service-connected disabilities

Income Limits for Additional Relief

For the income-based veterans exemptions, the 2024 income thresholds (based on 2023 income) are:

• Unmarried applicants: $43,800 

• Married applicants: $53,400 

How the Exemption Appears on Your Tax Bill

The exemption applies to assessment years commencing on or after October 1, 2025 . For fiscal year 2026, this means:

• The exemption first appears on tax bills issued in July 2026 

• The exemption reduces the assessed value of your property (or vehicle) to $0 for the purposes of property tax calculation

Common Questions

What is the deadline to file for the Connecticut disabled veteran property tax exemption for fiscal year 2026?

The deadline is January 1, 2026. Because January 1 is a holiday, applications must be received by 4:30 PM on December 31, 2025, to be considered timely . Postmarks do not count.

Do I have to reapply every year?

Yes. Connecticut law requires annual renewal by January 1 using Form D-2, along with a current VA disability letter dated within the last six months .

Does the exemption apply to my entire property or just the dwelling?

The exemption applies to the dwelling (primary residence). Towns may, upon approval of their legislative body, extend the exemption to up to two acres of the lot . Some towns cap the exemption at the median residential assessment .

What if I don’t own a home?

If you do not own a dwelling, the exemption may be applied to one motor vehicle you own and garage in Connecticut .

What is the difference between 100% disability and Individual Unemployability (TDIU)?

Veterans with TDIU are considered totally disabled even if their schedular rating is below 100%. Connecticut law now allows municipalities to extend the exemption to TDIU veterans . Check with your town assessor.

What if I received my VA determination late?

You can apply to the tax collector up to one year after obtaining your proof. The exemption can be applied retroactively but no more than three years .

Can surviving spouses continue the exemption?

Yes. Municipalities may extend the exemption to surviving spouses of veterans who had a TDIU determination and died prior to October 1, 2025 .

Does this exemption apply to vehicles too?

Yes. If the veteran does not own a dwelling, the exemption applies to one motor vehicle owned and garaged in Connecticut .

What forms do I need?

You need Form D-2 (prescribed by the Office of Policy and Management) and a current VA disability letter. You must also file an attestation that you are not claiming this exemption in another town .

Where do I apply?

Apply with your town assessor’s office. Not the state.

Key Takeaways

• Connecticut’s 100% P&T disabled veteran property tax exemption takes effect for fiscal year 2026, with the first applications due by January 1, 2026 .

• The annual filing deadline is January 1 (received, not postmarked). Because Jan 1 is a holiday, applications must be received by 4:30 PM on December 31 .

• The exemption requires annual renewal, with Form D-2 and a current VA disability letter (less than 6 months old) due each year .

• Towns may adopt local options including exempting up to 2 acres of land or capping the exemption at the median residential assessment .

• TDIU (Individual Unemployability) veterans may qualify if their town has adopted the local option .

• Veterans who missed the deadline may apply for retroactive abatement or refund up to one year after obtaining proof, with a maximum of three years retroactive .

• The exemption applies to a primary residence or, lacking one, a motor vehicle .

• Surviving spouses may be eligible if the town has adopted the local option .

Official Resources

• Connecticut General Assembly: www.cga.ct.gov — Bill status and full text of legislation

• Office of Policy and Management (OPM): portal.ct.gov/OPM — Form D-2 and income thresholds

• Connecticut Department of Veterans Affairs: portal.ct.gov/DVA — State veterans services

• U.S. Department of Veterans Affairs: www.va.gov — Obtain disability rating and benefits letter

• Town Assessor’s Office: Contact your local town assessor for application deadlines and forms

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