Arizona's most severely disabled veterans will now receive full property tax relief on their primary residence under newly signed legislation at the State Capitol.

House Bill 2792 was approved with near-unanimous bipartisan support in the Arizona Legislature and has been signed into law. The measure ensures that veterans rated 100 percent service-connected disabled qualify for a full property tax exemption on the entire assessed value of their primary home.

Previously, implementation questions remained following last year's broader tax legislation. Lawmakers worked with county assessors to clarify eligibility requirements and ensure consistent application across the state.

What the Law Changes

Under the new law:

• Veterans rated 100% service-connected disabled are eligible for a full property tax exemption on their primary residence.
• The exemption applies to the entire value of the home, even if the property is jointly owned.
• A surviving spouse may continue receiving the exemption if they do not remarry, including if they move to a new primary residence.
• Income limits apply across the entire section of law.
• Property tax exemptions may not be combined across categories.

The law takes effect immediately and will apply beginning with the 2026 tax year. Eligible veterans will see the exemption reflected in property tax payments due in October 2026.

Michael Carbone, the bill's sponsor, said the legislation was developed in coordination with county assessors to ensure clear implementation. A companion measure was sponsored in the Senate by David Gowan.

Impact for Arizona Veterans

The change provides long-term housing stability for veterans whose disabilities are directly connected to their military service. By exempting the full assessed value of a qualifying primary residence, the law eliminates property tax liability for eligible veterans who meet income requirements.

Veterans interested in determining eligibility should contact their county assessor's office for guidance on application procedures and documentation requirements.

Additional information is expected to be provided by county officials ahead of the 2026 tax year implementation.