Disabled Veteran property tax exemption in Maryland
Program figures verified July 2026 — details change; confirm your scenario with us.
If you are a Maryland Veteran with a VA disability rating, you may qualify for a substantial reduction or full elimination of your property tax bill. This page walks through how the exemption works in Maryland, who qualifies, and how to apply.
How Maryland's disabled Veteran property tax exemption works
Maryland provides a full exemption with specific qualifications. The implementation varies by county.
100% disability rating
A Veteran rated 100% permanent and total service-connected by the VA receives a full exemption from real property tax on the dwelling and the curtilage (the surrounding yard used with the residence). There is no income limit and no value cap. The exemption applies while the Veteran owns and lives in the home as a primary residence.
Surviving spouse
An unremarried surviving spouse of a qualifying Veteran keeps the exemption. Surviving spouses of service members killed in the line of duty also qualify.
Lower disability ratings (50-99%) — the county-option credit
Maryland's full exemption is 100% P&T only, but a separate state law (Tax-Property §9-265, enacted 2020) lets counties grant a property tax credit for lower ratings: 50% of the county tax for Veterans rated 75-99% and 25% for Veterans rated 50-74%, with a $100,000 federal adjusted gross income cap. It only applies where the county has adopted it — Anne Arundel, Frederick, and Montgomery counties have; check your county's current rules. People search for this as a lower-rating "exemption," but it is technically a county credit, and it reduces (not eliminates) the county portion of the bill.
Anne Arundel County disabled Veteran property tax exemption
Anne Arundel County — home to Fort Meade and Annapolis — follows Maryland's structure on both levels. A Veteran rated 100% permanent and total service-connected gets the full state exemption on the dwelling and yard, with no income limit and no value cap. Anne Arundel has also adopted the §9-265 county credit for partial ratings: 50% of the county tax at a 75-99% rating and 25% at 50-74%, subject to a $100,000 federal AGI cap. File through SDAT with your VA rating letter and DD-214.
How do I apply for the disabled veteran property tax exemption in Maryland?
File SDAT's 100% Disabled Veteran Exemption Application with your local State Department of Assessments and Taxation office, along with your VA rating letter (showing 100% permanent-and-total) and DD-214, or surviving-spouse documentation. You may apply at any time. If you were eligible before you applied, Maryland law (Tax-Property §7-208(g)) requires a refund of state, county, and municipal taxes you paid while eligible — request it within the 3-year period beginning with the calendar year you first became eligible.
How this fits with your VA loan
When you buy a home in Maryland with a VA loan, your lender estimates property tax as part of your monthly payment (the T in PITI). If you qualify for the disabled Veteran exemption, that monthly tax escrow drops or zeroes out — which lowers your full monthly payment and improves your debt-to-income ratio. Some lenders are willing to use the post-exemption tax figure during underwriting; others want you to qualify on the pre-exemption number. Mike can structure this correctly during pre-approval so you do not lose buying power.
Common questions
Does Anne Arundel County have a disabled Veteran property tax exemption?
Yes. For a 100% permanent and total service-connected Veteran, Maryland's full state exemption applies in Anne Arundel County — no income limit, no value cap. Anne Arundel has also adopted the §9-265 county credit for partial ratings: 50% of the county tax at a 75-99% rating and 25% at 50-74%, with a $100,000 federal AGI cap. Apply through SDAT with your VA rating letter and DD-214.
What disability rating qualifies for a 75% property tax credit in Maryland?
Maryland does not grant a credit equal to 75% of the property tax bill. The top county-option credit under Tax-Property §9-265 is 50% of the county tax, and it takes a 75-99% service-connected rating to qualify (25% at 50-74%). A full exemption — wiping 100% of the bill on the home and yard — requires a 100% permanent and total service-connected rating.
Do I need to be 100% disabled to qualify?
Yes, for the full exemption — it requires a 100% permanent and total service-connected rating. At 50-99% you may instead get a county-option credit (50% of county tax at 75-99% rating, 25% at 50-74%) in counties that adopted it, such as Anne Arundel, Frederick, and Montgomery.
What if my disability rating changes?
Rating changes can affect eligibility. If you become rated 100% P&T after buying, apply with SDAT — and claim the retroactive refund: §7-208(g) requires refunds of taxes paid while you were eligible, requested within the 3-year window. If your rating decreases below the qualifying threshold, the exemption ends.
Does the exemption transfer if I sell and buy a new home?
You typically need to reapply when you move. The exemption applies to your primary residence, so each new homestead requires a fresh application with the county.
At what percentage of disability do you stop paying property taxes in Maryland?
At 100% permanent and total service-connected, you stop paying entirely — the state exemption wipes the bill on your home and yard. Below 100% there is no statewide "stop paying" threshold; instead, counties that adopted the §9-265 credit cut the county portion by 50% (75-99% rating) or 25% (50-74% rating), subject to a $100,000 federal AGI cap.
Is the Maryland disabled Veteran property tax exemption retroactive?
Yes. If you were eligible before you applied, Maryland law requires a refund of state, county, and municipal property taxes you paid while eligible — request it within the 3-year period beginning with the calendar year you first became eligible (Tax-Property §7-208(g)).
What documents do I need for the Maryland disabled veteran tax exemption?
Your VA rating letter (the award letter showing 100% permanent and total service-connected status) and your DD-214, filed with SDAT's 100% Disabled Veteran Exemption Application at your local assessment office. Surviving spouses file proof of the Veteran's qualifying status instead.
What about my spouse if I pass away?
Maryland allows the surviving spouse to continue the exemption under specific conditions — see the detailed section above. Estate planning around this benefit is worth discussing with a Maryland attorney before any major decisions.
Is Maryland's disabled Veteran property tax exemption new for 2026?
No. Maryland's full exemption for a Veteran rated 100% permanent and total service-connected is established law under Tax-Property §7-208 — nothing about the underlying exemption changed for 2026. It has no filing deadline and no home-value cap. Do not confuse it with recent property-tax changes in other states.
Do all Maryland counties give disabled Veterans below 100% a property tax break?
No. Only counties that adopted the optional local credit under Tax-Property §9-265 offer one. As of this review, Montgomery, Anne Arundel, and Frederick counties have adopted it; it cuts the county portion of the bill by 25% (50-74% rating) or 50% (75-99% rating), subject to a $100,000 federal AGI cap. It is not a full exemption and does not apply statewide.