Do Disabled Veterans Pay Property Tax in Florence, AZ?

I'm Andria Townsend, a loan officer with NEXA Mortgage. I've lived in Arizona for over 15 years, and I'm based in San Tan Valley, here in Pinal County.

The disabled veteran property tax exemption in Florence, AZ is a big change for Arizona veterans. Here's how it works, and what it means if you're buying or already own.

What changed in Arizona's disabled veteran property tax exemption?

Arizona has offered disabled vets a partial exemption for years. In 2025, lawmakers added a full exemption for vets with a 100% service-connected rating.

Then in February 2026, an emergency law (HB 2792) cleaned it up. The full exemption now applies to your primary residence. If you own the home with your spouse, it's treated as if you own it alone.

The change applies to tax years starting January 1, 2026.

Who qualifies for the full exemption?

Under Arizona law (A.R.S. 42-11111), here's what the full exemption looks for:

• You're an Arizona resident.
• You were discharged or released under honorable conditions.
• You have a 100% service-connected VA disability rating, or TDIU status.
• The home is your primary residence.

The state's income limits are written for a different exemption, the one for widows, widowers, and people with a total and permanent disability. Pinal County's page still lists income and document rules, though. So confirm with the assessor before you file.

Surviving spouses: If your spouse was eligible for the full exemption, your primary residence can stay fully exempt. It ends if you remarry.

What if my VA rating is less than 100%?

You may still get a partial exemption. It's a set dollar amount off your home's assessed value, multiplied by your rating percentage.

The state adjusts that amount every year. Ask the assessor for this year's number.

How do you apply in Pinal County?

• When: The first Monday in January through the last day of February.
• Where: First-time applicants apply in person. The main office is at 31 N Pinal Street, Building E, in Florence. There's also a San Tan Valley office at 31505 N Schnepf Road.
• What to bring: Your VA disability letter, Arizona driver's license or ID, and your title or tax bill. The county lists a few more items, so call ahead.
• Phone: Pinal County Assessor, 520-866-6361.

I'm buying a home in Florence. When does the exemption start?

Timing matters here. If you already have the exemption on another Arizona home, the law gives you 60 days after the new home becomes your primary residence to file a transfer form with the assessor.

If this is your first time, you'll file during the next January to February window. Until the exemption shows up on your bill, plan on paying taxes like any other homeowner.

Here's where your loan comes in. Most VA loans have an escrow account for taxes and insurance. When you buy, escrow is usually set up before your exemption is on the books.

Once your tax bill drops, your servicer's yearly escrow review should pick it up. If it doesn't, call them. I explain how that works in my post on Pinal County property taxes and your escrow.

What does this mean for buyers?

• Your future tax bill could be a lot lower. But ask me how taxes will be figured when you qualify. Every file is different.
• Two separate benefits. VA says vets receiving compensation for a service-connected disability usually don't pay the VA funding fee. That's a loan benefit. The property tax exemption is a state benefit. You may get both.
• Look at the tax bill, not just the price. Whether you're shopping in Anthem at Merrill Ranch, Magma Ranch, or near downtown Florence, the tax history tells you a lot.

What does this mean for current homeowners?

If you already own in Florence and you recently got a 100% or TDIU rating, check with the assessor. You might qualify for the full exemption now.

If you've had the partial exemption for years, it's worth a call too.

What should sellers and agents know?

Here's one that trips people up. If the seller is a disabled vet with the exemption, the tax bill on the listing may look really low.

That exemption doesn't go with the house. Selling the home ends it for the seller, and the buyer's taxes are based on their own situation.

For agents, it helps to ask your veteran buyers about their rating early. And remember, VA caps seller concessions at 4% of the home's reasonable value, and a seller credit for the funding fee counts as a concession. I cover seller help more in Can the Seller Pay Your Closing Costs in Pinal County?

I'm a loan officer, not a tax professional. For your exact situation, talk to the Pinal County Assessor or a tax pro. VA loans are subject to eligibility, credit approval, and program guidelines. Programs can change.

FAQ

Do 100% disabled veterans pay property tax in Arizona?

Starting with tax year 2026, the primary residence of a veteran with a 100% service-connected rating, or TDIU status, is fully exempt under Arizona law. You still have to apply with your county assessor.

Does the exemption cover all my property or just my home?

The full exemption covers your primary residence. Other property may fall under different rules, so ask the assessor.

Can a surviving spouse keep the exemption?

Yes. If the veteran was eligible for the full exemption, the surviving spouse's primary residence can stay fully exempt. It ends if the spouse remarries.

Does the exemption transfer when I buy a new home?

It doesn't move automatically. You'll need to file a transfer form with the county assessor within 60 days after the new home becomes your primary residence.

When do I apply in Pinal County?

Pinal County takes applications from the first Monday in January through the last day of February. First-time applicants apply in person.

Do disabled veterans pay the VA funding fee?

VA says you won't pay the funding fee if you're receiving VA compensation for a service-connected disability, plus a few other cases. Your lender confirms this with VA.

Ready to buy in Florence with your VA benefit?

Let's talk before you start shopping. I'll help you see how your benefits fit together and what you'll need for pre-approval.

Get pre-approved or ask me a question at andriatownsend.com, or call me at 480-487-9166.

Sources

• Arizona Revised Statutes 42-11111, Exemption for property; veterans with a disability
• Arizona State Senate Fact Sheet, HB 2792 (enacted February 2026)
• Pinal County Assessor, Veterans Exemptions
• VA.gov, VA funding fee and loan closing costs

Andria Townsend, Mortgage Loan Originator, NMLS #2154631. NEXA Mortgage, LLC, NMLS #1660690. Equal Housing Opportunity. This is not a commitment to lend. All loans subject to credit approval, underwriting, and program guidelines.