New Jersey's 100% Disabled Veteran Property Tax Exemption: What to Know When You Buy

If VA has certified you as 100% permanently and totally disabled from your active-duty service, and you were honorably discharged, New Jersey exempts your main home from property taxes. When you buy, you file Form D.V.S.S.E. with the town's tax assessor, and the State's form says the exemption can be prorated from the date you take title, so file soon after closing.

I'm Dennis Mark Interdonato with The Dennis Mark Group. For a qualifying veteran buying in Monmouth or Ocean County, this exemption can make a real difference in the monthly payment, because property taxes are part of most mortgage payments. Here's what the State says.

Who qualifies for New Jersey's 100% disabled veteran exemption?

According to the NJ Division of Taxation, you must:

• Have active-duty service in the U.S. Armed Forces
• Be honorably discharged
• Be a legal resident of New Jersey
• Own the home and live in it as your main home
• Have a VA certification of an active-duty, service-connected disability stating you are 100% permanently and totally disabled

The State's brochure describes it as a full exemption on the dwelling house and the lot it sits on. It's a statewide program, so it works the same way whether your new home is in a Monmouth County town or an Ocean County one. What changes is which town's assessor you file with.

What counts as 100% permanently and totally disabled here?

Form D.V.S.S.E. gives two ways to meet it. One is a service-connected disability declared a total or 100% permanent disability, not rated that way only because of a hospital stay, surgery or recovery. The other is a service-connected disability rated unemployable, paid at 100%, and stated to be totally and permanently disabling. The form also asks for the date VA made that determination.

Do you need to have served during a war?

No. The form explains that after a constitutional amendment New Jersey voters approved in 2020, wartime service isn't required for claims after December 3, 2020. It says the exemption can begin as soon as you meet all the requirements.

How do you apply after you buy a home?

1. Close on the home you'll live in as your main residence.
2. Fill out Form D.V.S.S.E. It asks for your ownership, whether the home is one-family or multi-unit, and your residency.
3. Attach your proof. The Division lists your DD214, your deed, a New Jersey driver's license, voter registration and your VA certificate of disability.
4. File it with the town's tax assessor. The form says you can file any time during the tax year. The State's brochure points to the Division of Taxation's list of municipal tax assessors if you need to find yours.

Does the exemption start the day you close?

It can be prorated from the date you take title, if you meet every other requirement. The State's own example on the form: you buy a home on February 14, file on June 1, and the assessment is split so that 44/365ths of the year is taxable and 321/365ths is exempt. In other words, the exempt period runs from the purchase date, not the filing date.

Don't wait on it anyway. The form also explains that refunds for past periods are limited and up to the town, so file once you qualify. Keep a copy of everything you file, and a note of the date you handed it in.

Does it cover condos, co-ops and multi-family homes?

The form defines the dwelling house to include a unit in a condominium, and it has a section for co-op tenant-shareholders. For a multi-unit home, you tell the assessor what share of the building you occupy as your residence, and the exemption follows that portion. If you're thinking about a two-family home, that's worth knowing before you make an offer. Buying a condo with a VA loan has its own steps, covered in buying a condo with a VA loan.

Can a surviving spouse claim the exemption?

Yes, if they qualify. The Division lists surviving spouses, civil union partners and domestic partners who haven't remarried or formed a new partnership, who live in New Jersey and own and occupy the home. The veteran must have been honorably discharged, or died on active duty, and been a New Jersey resident at death, with VA certification of the 100% permanent and total disability. The form adds that the surviving spouse has to verify the veteran owned and occupied a home in New Jersey at the time of death.

What should you tell your lender and attorney before closing?

That you plan to file. Property taxes are part of most monthly mortgage payments, so ask your lender how they'll handle taxes while the exemption is pending. If you receive VA compensation for a service-connected disability, VA also says you don't pay the VA funding fee. See who pays the VA funding fee.

Frequently Asked Questions

Do 100% disabled veterans pay property taxes in New Jersey?

Not on their main home, once they qualify and the assessor approves the claim. The exemption covers the dwelling and its lot.

Is there a deadline to file?

The form says you can file with the assessor any time during the tax year, and it can be prorated from the date you acquired the home.

What if my claim is denied?

You can appeal to the County Board of Taxation on Form A-1 by April 1 after the denial, or by January 15 in Burlington, Gloucester and Monmouth counties. In Ocean County, that's April 1.

Do I have to tell the assessor if something changes?

Yes. The form says claimants must tell the assessor about any change that could affect the exemption, like selling the home.

Does the exemption cover the yard and garage?

The form defines the dwelling house to include outbuildings and features used for the home's enjoyment, along with the curtilage, the enclosed ground and buildings around the house. The State's brochure describes the exemption as covering the house and the lot it sits on.

This is general information, not legal, tax or lending advice. Your local assessor decides your claim.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. See how I handle military and veteran home purchases.

Keep reading

• The free Military Home Guide
• New Jersey's $250 veteran property tax deduction
• How property taxes affect your monthly payment
• Find out what your home is worth
• Have a question this didn't answer? Send it to Dennis Mark.