If you serve in the military or have served, it helps to know how Oregon handles property taxes for veterans. Oregon's military presence leans toward the Air National Guard, with Portland Air National Guard Base at the Portland airport and Kingsley Field in Klamath Falls, along with Coast Guard units on the coast and Oregon National Guard soldiers across the state, so it 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. Oregon does not erase a disabled veteran's property tax bill. Instead, it exempts a set dollar amount of the home's assessed value, and that amount rises a little each year. This guide explains how that works in plain language and points you to the state's own sources. Tax law changes, so treat these figures as a starting point and confirm the current rules before you file.
How Oregon Helps Disabled Veterans With Property Taxes
Oregon lowers a disabled veteran's property tax by exempting part of the home's assessed value before the tax is figured. The U.S. Department of Veterans Affairs, known as the VA, is the federal agency that rates service-connected disabilities, and a service-connected rating opens the door to the larger benefit.
As the Oregon Department of Revenue explains, under Oregon Revised Statutes 307.250 through 307.283, a disabled veteran or a surviving spouse may exempt a portion of the homestead's assessed value from property taxes. The exemption is applied first to your home and then to your taxable personal property, and the dollar amount increases by 3 percent each year.
Who Qualifies and How Much It Is Worth
For the 2026 to 2027 tax year, there are two amounts. A veteran officially certified by the VA or a branch of the U.S. Armed Forces as having service-connected disabilities of 40 percent or more may exempt $32,512 of assessed value, with no income limit. A veteran certified at 40 percent or more in other ways, including a veteran certified each year by a licensed physician, may exempt $27,092, though the physician path has an income limit tied to the federal poverty guidelines. Active-duty service members, including National Guard and Reserve members, may also qualify for a residential property tax exemption. The Oregon Department of Veterans' Affairs summarizes these programs.
Surviving Spouses
The benefit can carry to a surviving spouse or registered domestic partner who has not entered a new marriage or partnership. A surviving spouse may claim the exemption even if the veteran was not disabled or never filed, and may qualify for the larger amount if the veteran died from a service-connected injury or illness or had received the maximum exemption for at least one year. Confirm the conditions with your county assessor.
How It Works With Your Local Tax Bill
Property tax in Oregon is assessed and collected at the county level. This exemption is not automatic and does not transfer from one property to another, so you file a claim with the county assessor where the home is located. You generally file by April 1 before the tax year you are claiming, or within 30 days if you acquire the property between March 1 and July 1. A veteran certified by the VA usually does not refile every year, while a veteran certified by a physician must refile annually.
Oregon also runs a separate property tax deferral program that lets some disabled homeowners delay paying property taxes, with a lien and interest, which is different from the exemption above. If you are weighing where to settle, our guide to the military bases in Oregon can help you picture the local cost of owning a home in each market.
Military Pay and Oregon State Income Tax
Oregon has a graduated income tax, and unlike some states it does not broadly exempt all military pay, so it pays to understand the specific subtractions. Military pay earned while you are a resident stationed outside Oregon is not taxed by Oregon, and military pay or allowances that are not part of your federal adjusted gross income are not taxed either.
Beyond that, the state's guidance for military personnel describes a subtraction of up to $6,000 for remaining taxable military pay. Military retirement pay gets narrower treatment: you may subtract only the part earned for service before October 1, 1991, and if your service spanned that date you prorate the subtraction by months of service. VA disability compensation is not part of your federal income, so Oregon does not tax it. Because these rules are more limited than in many states and can change, confirm the current details with the Department of Revenue 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 an Oregon resident just because your service member got orders here.
Under the related federal rules, a service member, the spouse, or both may choose the service member's home state, the spouse's home state, or the service member's permanent duty station for residency. Because that choice affects both states' taxes, confirm yours before you file. For the property tax exemption in this guide, what usually matters most is that the qualifying veteran or surviving spouse owns and lives in the home.
