Oregon Veteran Tax Exemptions 2026

Oregon offers disabled veterans a property tax exemption on their home that can make a noticeable difference in monthly costs. The state does have an income tax, but military retirement income receives favorable treatment that is worth understanding. Taken together, these benefits are designed to recognize your service and reduce your financial burden. Read on to see what you qualify for and how to apply.

Does Oregon tax VA disability income?

No. Oregon 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 Oregon.

Oregon property tax exemption for disabled veterans

$26,400 reduction at 100% P&T. $26,400 home value reduction for 100% P&T.

Oregon's property tax exemption is tied to your disability rating, so the higher your rating, the more relief you can receive on your home.

What rating do you need in Oregon?

The size of your break depends on your combined VA rating. In Oregon, 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 Oregon 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 Oregon 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 Oregon Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.