Market Value Exclusion for Veterans with a Disability

Veterans may qualify if they:

• Are honorably discharged from the United States armed forces
• Have a service-connected disability rating of 70% or higher
• Own and occupy a homesteaded property on December 31

A surviving spouse of a qualifying veteran may be eligible to continue receiving the exclusion if the:

• Veteran had a 100% permanent and total disability rating (may still qualify if veteran did not receive the exclusion before dying)
• Surviving spouse receives Dependency and Indemnity Compensation 
• Veteran had a service-connected death while in active service

If all requirements are met, surviving spouses may qualify for $300,000 of market value exclusion until they remarry, transfer or dispose of the property.  The spouse can have a one time sale of the property and still retain the exclusion. 

Primary family caregivers may qualify if they:

• Are approved by the U.S. Department of Veteran Affairs as the primary family caregiver for an honorably discharged veteran with a service-connected disability of 70% or more
• Own and occupy a homestead property by December 31

The veteran that the primary family caregiver cares for cannot also own homestead property by December 31.

Qualifying veterans must provide:

• U.S. Government Form DD214 or other military discharge papers
• Documentation from the U.S. Department of Veteran Affairs (VA) verifying disability status

Note: The VA may also provide a letter that includes all required information (both discharge and disability).

Surviving spouses of veterans who had total (100%) and permanent disability must provide documentation describing their benefits as surviving spouses of veterans who were permanently and totally disabled.

Surviving spouses awarded Dependency and Indemnity Compensation must provide verification of Dependency and Indemnity Compensation.

Surviving spouses of service members who died while serving in active duty must provide:

• Verification of Dependent Indemnity Compensation or other benefit letters from the U.S. Department of Veterans Affairs, if requested by the assessor
• U.S. Government Form DD1300 or DD2064 for service members
• Verification of the veteran's date of death

Primary family care givers must provide:

• Certification that they qualify for benefits described under the Program of Comprehensive Assistance for Family Caregivers
• Information necessary to verify the discharge and disability status of the qualifying veteran

The veteran that the Primary Family Caregiver cares for cannot also own homestead property by December 31.

Does this exclusion apply to farms?

Yes. For agricultural homesteads, the value of the house, garage, and immediately surrounding one acre of land will qualify for the exclusion. 

Can I get the regular homestead exclusion with this exclusion?

No. If a property qualifies for this market value exclusion, the property does not receive the regular residential homestead market value exclusion.