The Alternative Veterans tax exemption is available to eligible veterans of foreign wars, expeditionary medalists, veterans with honorable discharges, spouses/widow(er)s of veterans, and Gold Star parents.
The Form DD-214 is usually used to indicate discharge under honorable conditions. Click the link for a complete listing of Acceptable Military Records for Veterans Property Tax Exemption.
Veterans who have received a letter from the New York State Division of Veterans’ Services stating that they meet the character of discharge criteria for all of the benefits and services listed in the Restoration of Honor Act may submit a copy of the letter.
The Eligible Funds exemption is for veterans who bought homes using "eligible funds," including pensions, bonuses, insurance, and mustering out pay. Both exemptions reduce the assessed value of the recipient’s property before taxes are assessed on it.
Thanks to changes in city and state law, the Alternative Veterans and Eligible Funds tax exemptions have been expanded and will now apply to school taxes. The typical single-family (tax class 1) home will save:
|Alternative Veterans||Eligible Funds|
|Estimated additional benefit
|Property tax savings in fiscal year 2018
|Gulf War, Iraq and Afghanistan conflicts||August 2, 1990||Present|
|Vietnam War||November 1, 1955||May 7, 1975|
|Korean War||June 27, 1950||January 31, 1955|
|World War II||December 7, 1941||December 31, 1946|
|World War I||April 6, 1917||November 11, 1918|
|Eligibility||Reduction of property's assessed value||Maximum exemption amount by tax class
|Served during a
specified period of conflict
$2,880 for Class 1;
$21,600 for Classes 2 and 4
|Served in a combat zone*||Additional 10%||Maximum of
$1,920 for Class 1;
$14,400 for Classes 2 and 4
multiplied by 50%
of the veteran’s
$9,600 for Class 1;
$72,000 for Classes 2 and 4
*Combat zone refers to a location of active combat, such as Vietnam during the Vietnam War.
** Veterans designated disabled by the Veterans’ Administration may be eligible for a disabled veteran exemption. Submit a copy of a letter from the VA indicating your disability rating. Your rating can be obtained by calling the VA at 1-800-827-1000.
Note: If you are currently receiving the Eligible Funds exemption, which does not require primary residency and wish to apply for the Alternative Veterans Exemption the property must be the veterans’ primary residence. If approved for the Alternative Veteran’s exemption, you will lose the Eligible Funds exemption permanently.
Other veterans exemption forms:
Your application must be submitted by March 15 for your exemption to begin on July 1 of the same year. For a paper application, call 311 or visit a Department of Finance assistance center.
Alternative Veterans exemption recipients who move mid-year to another property in NYC can receive a pro-rated exemption by completing a new application for the new property.
Visit the exemptions page to learn about other tax breaks for which you might qualify.
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