As an example of state to state differences, Texas allows a 100% exemption from all property taxes for 100% service connected disabled Veterans, regardless of your property value. California is not as generous. The Golden State sets larger restrictions on property value, income and disability status.
Texas will allow reduced exemptions for those Veterans with LESS THAN 100% disability. California will only allow an exemption for Veterans with a full 100% disability rating. You must be a “qualified” disabled Veteran or the unmarried spouse of a “qualified disabled Veteran” to participate in the program.
In 2015, California allowed an exemption for the first $126,380 of property value. In other words, if you own a home worth $426,380 as assessed by the county assessor, your county will require that you still pay property taxes on $426,380 minus $120,380 or $300,000 of value. The Golden State gets a little bit more generous if your income is less than $56,751 per year. It’s worth noting that California does not make any further restrictions if any of the income is tax free (from your disability payments from the VA.) If you meet that income criteria of less than $56,751, your property tax exemption increases to $189,571. California’s tax code provides for annual inflation adjusted limits of both exemption amounts and income limits.