The Alternative Veterans Exemption is a primary residence property tax discount in New York for veterans and eligible family members. You must meet veteran status, residency and ownership requirements to qualify.
The Alternative Veterans Exemption reduces your home’s assessed value by 15% if you served during a qualified service period and an additional 10% if you served in a combat zone.
You may qualify for an additional reduction in assessed value if you incurred a service-connected disability, equal to one-half of your service-connected disability rating.
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Alternative Veterans Exemption Status Eligibility
You must be one of the following to qualify for the Alternative Veterans Exemption:
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A veteran who served during a Qualified Service period of war or conflict
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The spouse of a qualified veteran
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The unremarried surviving spouse of a deceased qualified veteran
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The parent of a qualified veteran who died in the line of duty (Gold Star parent)
The NYS Department of Finance states that the following veterans may also qualify:
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Recipients of the Armed Forces Expeditionary Medal,
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Recipients of the Navy Expeditionary Medal,
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Recipients of the Marine Corps Expeditionary Medal, or
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Receipients Global War on Terrorism Expeditionary Medal (not Service Medal).
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Those who served in U.S. Merchant Marines during World War II.
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Those who served during a civilian capacity during world War II in either of the following capacities: 1) American Field Service under U. S. Armies and the U.S. Army Groups, or 2) Flight crew and aviation ground support employee of Pan American Airlines’ contract with the Air Transport Command
This means you live there most of the year and it’s the address where you are registered to vote. You must maintain a continuous and physical presence at the address in order to satisfy the residency eligibility requirement.
The only exception would be in the case you’re absent from the property due to medical reasons or because you’re institutionalized.
The property must also be used exclusively for residential purposes. The Alternative Veterans Exemption does not apply to any portion of the property that is not used exclusively for residential purposes.
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Alternative Veterans Exemption Ownership Eligibility
To qualify for the Alternative Veterans Exemption, the property must be owned by a veteran, the spouse of a veteran, or the unremarried surviving spouse of a veteran.
Properties owned by Life Estates, Trusts and LLCs are subject to additional documentation requirements:
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If the property has a life estate, only the individual retaining the life estate can apply.
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If the property is held in a trust, only the qualifying beneficiary/trustee can apply.
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If your property is owned by a business, it is not eligible for homeowner tax benefits.
Properties controlled by any of the following are not eligible for the Alternative Veterans Exemption:
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Mitchell-Lama
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Limited-Profit Housing Company
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Limited Dividend Housing Company
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Redevelopment Company
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Housing Development Fund Company
How much is the Alternative Veterans Exemption property tax discount?
The Alternative Veterans Exemption reduces your home’s assessed value by 15% if you served during a qualified service period and an additional 10% (for a total of 25%) if you served in a combat zone.
You may qualify for a further reduction in assessed value if you incurred a service-connected disability.
Note that in some jurisdictions such as NYC the reduction in assessed value is subject to maximum dollar limits, as outlined below.
The following table shows the exemption rates for Alternative Veterans:
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Served during a specified conflict period: 15% reduction in assessed value
NYC Maximum Exemption Amounts: $2,880 for Class 1 and $21,600 for Classes 2 and 4
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Served in a combat zone: additional 10% reduction in assessed value
NYC Maximum Exemption Amounts: $1,920 for Class 1; $14,400 for Classes 2 and 4
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Disabled: Assessed value multiplied by 50% of the veteran’s disability rating
NYC Maximum Exemption Amounts: $9,600 for Class 1; $72,000 for Classes 2 and 4
How to apply for the Alternative Veterans Exemption in NYC
If you live in NYC, you can apply for the Alternative Veterans Exemption online or download a paper application using the links below:
The application deadline in NYC is March 15. The Veterans Exemption does not need to be renewed once you start receiving the benefit.
The following documentation is required when applying for the Alternative Veterans Exemption in NYC:
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COPY of DD214 or its equivalent
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COPY of separation papers
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NOTE: The DD214 (or its equivalent) and/or separation papers are REQUIRED and must
AND COPIES of one of the following, if applicable:
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Marriage certificate, if a spouse is applying for the exemption based on the military service of the veteran and the veteran is not on the deed.
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Death certificate, if you are an unremarried surviving spouse or Gold Star parent.
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Veterans Administration award letter with service connected disability rating, if the veteran is disabled.
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COPY of New York State Department of Veterans’ Services Restoration of Honor letter (required only if the veteran received an other-than-honorable discharge)
Additional documentation may be needed in the following cases:
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If the property is a cooperative, provide a COPY of the stock certificate.
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If the property is held in a trust, submit a COPY of the trust agreement.
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If the property was willed to an owner, submit a COPY of last will and testament, probate or court order.
