New York State Mandates Full Property Tax Exemption for Certain Disabled Veterans

Effective for the 2027-28 school year, school districts (and local governments) will need to provide a full property tax exemption to qualifying seriously disabled veterans. This change, resulting from a February 2026 amendment to Real Property Tax Law §458-a(11), makes the 100% real property tax exemption mandatory statewide without a local opt-in option.

The Alternative Veterans’ Exemption reduces the taxable assessed value of a qualifying veteran’s private, primary residence before the tax rate is applied. The statute provides tiered levels of exemption for veterans after a public hearing and adoption by Board resolution or local law. The statute also provides for an exemption for parents of veterans who were killed in service. Prior to the recent amendment, any real property tax exemptions under the Real Property Tax Law §458-a were optional.

Under the amended law, the benefits provided under subsection 11 of the statute will be mandatory. Qualifying veterans include those who were discharged or released for reasons other than bad conduct or dishonorable discharge and (i) are permanently and totally disabled as a result of military service; (ii) rated one hundred percent disabled by the United States Department of Veterans Affairs; (iii) have been rated by the United States Department of Veterans Affairs as individually unemployable; and (iv) are eligible for federal housing aid. Qualifying veterans must submit the appropriate application to their assessor, who will grant the exemption without the need for local legislation or opt-in resolutions.

What does this mean for you? No Board action is required, and the exemption will not reduce school tax revenue. However, the exemption may have an impact on the school tax rate as certain homes will no longer be subject to real property tax. Districts can work with their local assessors to determine the potential shift and take that into consideration when projecting the 2027-28 tax rates for budgetary purposes next spring.

Contact us if you have questions.