Our loan officers frequently receive questions concerning potential property tax breaks for military homeowners. This is definitely something prospective and current homeowners should look into closely.
Using your VA home loan benefits to unlock the door to your dream home is a great first step, and it’s one you should act on now. But tax breaks can save you hundreds as well.
Property taxes are one of the four pillars of a monthly mortgage payment, which typically includes the principal payment, an interest payment and a homeowners insurance payment. The acronym PITI (principal, interest, taxes, insurance) is a common industry acronym. It’s also an easy way for VA borrowers to remember their monthly obligations.
In the past, I have never been able to find a national clearinghouse that lists all the property tax exemptions in every state. Now, I use this list of property tax breaks by state that we made earlier this year. Some states provide tax breaks only for disabled veterans, while others have programs open to all veteran homeowners who meet the state’s requirements and guidelines.
For example, Connecticut provides a $1,000 tax exemption for “certain honorably discharged veterans who actively served at least 90 days during war time, or their survivors,” according to the state office of policy and management. “State law also provides an additional exemption for veterans and disabled veterans who are eligible for the basic exemption and who can meet certain income limits.”
But in Pennsylvania, homeowners need to have a 100 percent disability rating from a service-connected disability or be blind, paraplegic or missing two or more limbs on account of military service.
The easiest way to start is with a quick Google search, maybe something like “Veteran property tax exemptions in Missouri,” or wherever you happen to live. You may also want to check with your county or state Veterans Affairs office.
Also feel free to share them at the VA Loans Insider Facebook page.
Photo courtesy of danielmoyle