@dougisyourlender Arizona veterans, this is BIG news. 🇺🇸 If you are a qualifying 100% service-connected disabled veteran or TDIU veteran, Arizona’s new law may eliminate property taxes on your primary residence beginning with the 2027 tax year. I dug into the legislation before sharing this update and also spoke with the County Treasurer’s office. They’re still waiting on official implementation guidance, but applications are expected to begin January 1, 2027. The recommendation is to apply as early as possible once applications open. This could mean thousands of dollars in annual savings for Arizona veterans and surviving spouses who qualify. You’ve earned these benefits through your service, and it’s important to stay informed about opportunities like this. Know a veteran who should see this? Share this video with them. #DougIsYourLender #ArizonaVeterans #VeteranTaxExemption #ArizonaPropertyTaxExemption #MilitaryBenefits ♬ Galactic Portal – Soda Poppy

As a veteran and mortgage lender, I am always looking for ways to help those who have served our country. Arizona recently took a significant step toward providing additional financial relief for disabled veterans and certain surviving spouses.

On June 13, 2026, Governor Katie Hobbs signed House Bill 4168 into law. Among many tax-related changes included in the legislation, HB 4168 amends Arizona’s property tax exemption statute for qualifying disabled veterans. The law applies to tax years beginning after December 31, 2026, meaning eligible homeowners could see property tax relief beginning with the 2027 tax year.

Who May Qualify?

The law is intended to benefit qualifying veterans with a 100% service-connected disability rating, including veterans receiving Total Disability Individual Unemployability (TDIU), as well as certain surviving spouses who meet statutory requirements. Arizona’s existing property tax exemption laws continue to require applicants to file with their local County Assessor’s Office.

When Can Veterans Apply?

Although the legislation has been signed into law, county offices are still awaiting final implementation guidance.

Based on information currently being shared by county officials:

• Applications are expected to open January 1, 2027
• Veterans should consider applying as early as possible after January 1
• An anticipated “soft” filing date may be near the end of February 2027
• An anticipated final filing deadline may occur in September 2027

Because implementation details may change, veterans should verify filing requirements and deadlines directly with their County Assessor’s Office before relying on these dates.

Will This Help Me Qualify for a Mortgage?

This is one of the most common questions I expect to hear.

In many cases, the answer is not immediately.

Mortgage lenders generally qualify borrowers using the property taxes that exist at the time of application and closing. Because homeowners must apply for and receive approval for the exemption through the county after eligibility is established, borrowers should not assume future property tax savings will automatically be used when qualifying for a mortgage today.

That said, once approved, the exemption could significantly reduce a homeowner’s annual housing expenses and improve long-term affordability.

Why This Matters

Property taxes represent a meaningful annual expense for Arizona homeowners. For qualifying disabled veterans and surviving spouses, this legislation could provide thousands of dollars in annual savings while recognizing the sacrifices these families have made in service to our country.

As additional guidance becomes available from Arizona counties, I will continue sharing updates that may affect veterans and homeowners throughout Arizona.

Learn More

Arizona Legislature – HB 4168

https://www.azleg.gov/legtext/57leg/2r/bills/hb4168h.htm

Arizona Legislature – Property Tax Exemption for Disabled Veterans

https://www.azleg.gov/legtext/57leg/1R/summary/S.2672FIN.DOCX.htm

Important Disclosure

This article is intended for educational purposes only and should not be considered legal, tax, financial, or mortgage advice. Eligibility requirements, application procedures, and filing deadlines are determined by Arizona law and local county officials and may change. Please consult your County Assessor’s Office, tax professional, attorney, or legal advisor regarding your specific situation.

Mortgage financing is subject to credit approval, underwriting guidelines, and program eligibility. This is not a commitment to lend. Equal Housing Lender. NMLS #1697500.

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