Tennessee disabled Veteran property tax relief
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 (including 100% via total disability based on individual unemployability, and certain other service-connected conditions defined by statute) who owns and lives in the home as a primary residence qualifies. 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 collector). The Tennessee Comptroller's office administers the program statewide. Bring your VA disability documentation; the assessor verifies your rating and primary-residence status.
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. We structure your pre-approval so the relief is reflected accurately and you do not lose buying power.
Common questions
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.