If you serve in the military or have served, Connecticut has become a more generous state for a veteran's property tax bill, thanks to a 2024 law that fully exempts the most severely disabled veterans. Connecticut draws many military families after a PCS, which is short for Permanent Change of Station, the official military move from one duty station to another, with Naval Submarine Base New London in Groton and the U.S. Coast Guard Academy in New London anchoring the southeastern corner of the state. This guide explains the main rules in plain language and points you to the state's own sources. Tax law changes, and Connecticut towns set many of these amounts locally, so treat these figures as a starting point and confirm the current rules before you file.
How Connecticut Helps Disabled Veterans With Property Taxes
Connecticut now offers a full property tax exemption to veterans with the most severe disabilities. As Governor Lamont's office announced, Public Act 24-46 created a state law, effective October 1, 2024, that exempts from property tax the primary residence of a veteran who has a service-connected permanent and total disability rating. If the veteran does not own a home, the exemption applies to one motor vehicle instead. The U.S. Department of Veterans Affairs, known as the VA, is the federal agency that assigns that permanent and total disability rating.
To qualify for the full exemption, you must have served in the U.S. Army, Navy, Marine Corps, Coast Guard, Air Force, or Space Force, have a service-connected permanent and total disability rating from the VA, live in Connecticut, and file for the exemption with your town assessor.
Smaller Exemptions Scaled by Rating
Veterans who are not rated permanently and totally disabled can still get a break. Connecticut law gives honorably discharged wartime veterans a basic exemption of $1,000 of assessed value, and it adds a larger exemption that grows with a veteran's VA disability rating. According to a Connecticut General Assembly research report, a veteran with a disability rating of at least 10 percent is entitled to a property tax exemption, and the amount depends on the rating, the veteran's age, and income. For example, a veteran rated 100 percent is entitled to an exemption of at least $10,500 of assessed value if income is below the state limit, or at least $5,250 otherwise. These are statewide minimums, and your town may grant more.
Local Options and Income-Based Relief
Connecticut layers extra help on top of the state amounts. Towns may adopt local-option exemptions that increase the basic amounts, and the state runs an income-tested Additional Veterans Tax Relief Program that can roughly double the exemption for veterans under set income limits. Because the exact dollars depend on your town and your income, confirm what applies to you with your local assessor.
Surviving Spouses
The benefit can carry to a surviving spouse under Connecticut's rules. A surviving spouse who has not remarried may be able to continue a veteran's exemption. Because the details depend on your situation, confirm them with your town assessor before you rely on the benefit.
How It Works With Your Local Tax Bill
Property tax in Connecticut is set and collected by your town, not the state, and you claim every veteran exemption through your town assessor. Near Naval Submarine Base New London, that office is the Town of Groton assessor. You file your discharge papers, your VA disability documentation, and the town's application, usually by the assessment deadline the town sets.
Because towns set their own tax rates and can add local-option exemptions, the same disability rating can save different amounts in different towns. If you are weighing where to settle, our guide to the military bases in Connecticut can help you picture the local cost of owning a home.
Military Pay and Connecticut State Income Tax
Connecticut has a graduated state income tax, but it fully protects military retirement pay. As the Connecticut Department of Revenue Services confirms, military retirement pay is fully exempt from Connecticut income tax through a subtraction on the state return. That makes Connecticut a friendly state for military retirees.
Active-duty pay is treated under the usual residency rules: a service member who keeps another home state and is stationed in Connecticut on orders is generally not taxed by Connecticut on military pay. VA disability compensation is not part of your federal income, so Connecticut does not tax it either. Because rates and rules can change, confirm the current details with the Department of Revenue Services before you file.
A Note for Military Spouses: MSRRA
If you are a military spouse, the Military Spouse Residency Relief Act, known as MSRRA, may matter to you. MSRRA is a federal law that lets a military spouse keep a home state for tax and voting purposes even after moving on military orders. You do not automatically become a Connecticut resident just because your service member got orders here.
