New York Veteran Tax Exemptions 2026

New York gives disabled veterans a real break on property taxes, and depending on your situation, you may qualify for a meaningful reduction on what you owe on your home. The state does have an income tax, but veterans with a service-connected disability may be eligible for an exemption on a portion of military retirement pay. Between those two benefits, the savings can add up in a hurry. This page lays out what you qualify for and how to claim it.

Does New York tax VA disability income?

No. New York does not tax VA disability compensation. The state treats it the same way the federal government does, which means it is left off your taxable income entirely. Whether you are rated 10 percent or 100 percent, your VA disability pay is not taxed by New York.

New York property tax exemption for disabled veterans

Tiered exemption by rating. Veterans, Cold War Veterans, and Eligible Funds exemptions available.

Even a partial rating can put a dent in your annual property tax bill, and the exemption grows as your disability rating climbs, so it pays to apply as soon as you qualify.

What rating do you need in New York?

The size of your break depends on your combined VA rating. In New York, the break is tiered, so even a partial rating can lower your property tax bill, and the amount climbs as your rating climbs. Not sure what your combined rating works out to? Run it through our VA disability calculator first, and if you are aiming for the top tier, check whether you qualify for Permanent and Total status.

How to claim your New York exemption

1. Confirm your current combined rating and whether it is Permanent and Total. Your VA award letter shows both.
2. Gather your DD-214 and your VA disability award letter. Most New York offices ask for both.
3. Contact your county tax assessor for the property tax exemption, and the your state tax agency or Department of Veterans Affairs for the income side.
4. File before your county deadline. Many counties require you to apply once, then renew only if your rating changes.

Always confirm the current figures and deadlines with your county assessor and the New York Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.