Tennessee disabled Veteran property tax relief
Program figures verified July 2026 — details change; confirm your scenario with us.
If you are a Tennessee Veteran rated 100% permanent and total service-connected, the state will reimburse the property tax on the first $175,000 of your home's value. This page explains the benefit, who qualifies, and how to apply.
How Tennessee's disabled-Veteran property tax relief works
Tennessee uses a tax relief (reimbursement) system, not a direct exemption. The State of Tennessee pays the property tax on the first $175,000 of the home's market value for qualifying disabled Veterans on their primary residence. Tax on value above $175,000 is still owed by the homeowner.
Who qualifies
A Veteran rated 100% permanent and total service-connected qualifies, as do Veterans with specific statutory conditions (service-connected paraplegia or permanent paralysis, legal blindness, loss or loss of use of two or more limbs) and former POWs with 100% permanent total disability (TCA 67-5-704). The Veteran must own and live in the home as a primary residence. There is no income limit on the disabled-Veteran relief — that income cap applies only to Tennessee's separate elderly/disabled-homeowner relief.
Surviving spouse
An unremarried surviving spouse may continue the relief. Surviving spouses of service members killed in action also qualify.
How to apply
Apply through your County Trustee (or city collecting official if you're inside city limits) using the consent form (F-16; surviving spouses use F-16S) — the VA supplies your rating data directly to the state. The Tennessee Comptroller administers the program. Plan for the first-year rhythm: you typically pay the bill, submit the paid receipt with your application, and the state mails the reimbursement.
How this fits with your VA loan
When you buy a home in Tennessee with a VA loan, your lender estimates property tax as part of your monthly payment (the T in PITI). If you qualify for the relief, the reimbursement on the first $175,000 of value lowers the effective tax portion of your payment and can improve your debt-to-income ratio. Because the first year runs on a pay-then-get-reimbursed rhythm, escrow doesn't automatically drop — we model the cash-flow effect and reflect the relief where underwriting allows.
Common questions
Does Tennessee have a property tax exemption for disabled Veterans?
Not an exemption — Tennessee's program is tax relief, a state reimbursement. In the Comptroller's own words, it is not an exemption: you still receive your tax bill, and the state pays back the tax on the first $175,000 of your home's market value if you qualify. The result feels similar on a typical home, but the mechanics (and the application through your County Trustee) are different.
At what disability rating do you stop paying property taxes in Tennessee?
Tennessee's disabled-Veteran relief requires a 100% permanent and total service-connected rating, POW status with 100% permanent total disability, or specific statutory conditions (paraplegia, legal blindness, loss of two or more limbs). Partial ratings of 10-90% do not qualify for this program — that's different from some neighboring states, and worth knowing before you budget.
How much does a 100% disabled Veteran actually save?
Run the math with your county's rate: on a $300,000 Davidson County home at a ~0.70% effective rate, the annual bill is about $2,100 — and the relief reimburses the tax on the first $175,000 of value, roughly $1,200 of that. On a home at or under $175,000 of market value, effectively the whole bill comes back.
Is the $175,000 the amount I get back?
No — $175,000 is the slice of your home's market value the reimbursement is calculated on, not a check for $175,000. The state pays back the tax attributable to that first $175,000 of value; you pay the tax on value above it.
Do 100% disabled Veterans pay property taxes in Tennessee?
A Veteran rated 100% permanent and total service-connected in Tennessee gets property tax relief that reimburses the tax on the first $175,000 of the home's market value, with no income limit. Tax on value above $175,000 is still owed, so it is relief rather than a full exemption.
Is there an income limit for the disabled-Veteran relief?
No. The 100% disabled-Veteran property tax relief has no income limit. The income cap applies only to Tennessee's separate elderly and disabled-homeowner relief program.
Is it a full exemption?
No. It is tax relief that reimburses the tax on the first $175,000 of your home's market value. If your home is worth more than $175,000, you still owe tax on the value above that.
Do I need to be 100% disabled to qualify?
Generally yes — the relief is for Veterans rated 100% permanent and total service-connected (or specific service-connected conditions set by statute). Veterans below that threshold may qualify for Tennessee's separate, income-limited elderly/disabled relief.
Does the relief transfer if I sell and buy a new home?
You reapply for your new primary residence through the County Trustee. The relief attaches to the home you own and occupy.
Did Tennessee raise the disabled-Veteran relief cap to $200,000?
No. As of the 2026 tax year, the reimbursement still covers the tax on the first $175,000 of a qualifying disabled Veteran's home market value. A bill (SB1798/HB1687) would raise the cap to $200,000, but it is not enacted — as of 2026 it remains in the Senate Finance, Ways and Means Committee, and similar bills in prior sessions never cleared that committee. Budget on the $175,000 figure that is current law today.