Maryland Disabled Veteran Property Tax Exemption

It is a full exemption of the dwelling house, which includes the lot or curtilage and the structures needed to use the property as a residence. The statute sets no dollar cap, no income limit and no home-value limit, with one exception: a surviving spouse’s later-acquired home is exempt only to the extent of the previous home’s exemption. It is granted in addition to any other exemption authorized by law, except that a person may have this one or the one in section 7-207, not both.

• Except as provided in subsection (e), a dwelling house is exempt from property tax if it meets the ownership and application conditions below.

  “Except as provided in subsection (e) of this section, a dwelling house is exempt from property tax if:”

• An individual may receive an exemption under this section or under section 7-207 but not under both.

  “An individual may receive an exemption under this section or under § 7–207 of this subtitle but not under both.”

The statute’s definition of a disabled veteran has two parts: the person is a veteran, and the VA has declared a permanent 100% service-connected disability that is reasonably certain to continue for life and was not caused by the veteran’s misconduct. A veteran who qualifies after death is included. The home must be the claimant’s legal residence, be occupied by not more than 2 families, and be owned by the veteran.

The veteran test changed in 2026. Chapter 689 of 2026 (Senate Bill 194), approved May 26, 2026, replaced the words “honorably discharged or released under honorable circumstances from active military, naval, or air service” with “is a veteran,” and it applies to taxable years beginning after June 30, 2026. “Veteran” is defined through State Government 9-901 as a person who served in the active military, naval, air, or space service and was discharged or released under conditions other than dishonorable. For a taxable year that began on or before June 30, 2026, the older honorable-discharge wording governs. Check which year you are claiming.

The statute’s text says 100%. SDAT, which administers the exemption, says an Attorney General’s opinion lets it be granted below 100% if the VA finds the veteran permanently unemployable. That is the agency’s guidance, not words in the statute, so ask your county assessment office how it treats an individual unemployability rating before you rely on it. SDAT also says it cannot accept the VA Summary of Benefit letter.

• In the current statute the first part of the definition of a disabled veteran is that the individual is a veteran; and the second part is the VA declaration below.

  “is a veteran; and”

• Tax-Property Article 1-101 says “veteran” has the meaning stated in section 9-901 of the State Government Article, which in turn points to 38 U.S.C. § 101.

  “"Veteran" has the meaning stated in § 9–901 of the State Government Article.”

• The term veteran means a person who served in the active military, naval, air, or space service, and who was discharged or released therefrom under conditions other than dishonorable.

  “The term "veteran" means a person who served in the active military, naval, air, or space service, and who was discharged or released therefrom under conditions other than dishonorable.”

• The VA has declared the veteran to have a permanent 100% service connected disability that results from blindness or other disabling cause that is reasonably certain to continue for the life of the veteran and was not caused or incurred by misconduct of the veteran.

  “has been declared by the U.S. Department of Veterans Affairs to have a permanent 100% service connected disability that results from blindness or other disabling cause that:”

• The dwelling house must be the legal residence of the claimant and occupied by not more than 2 families.

  “occupied by not more than 2 families”

• SDAT says an Attorney General’s opinion further provides that the exemption may be granted where the rating is less than 100% disability provided the VA finds that the veteran is permanently unemployable.

  “An Attorney General's Opinion further provides that the exemption may be granted where the rating is less than 100% disability provided the VA finds that the veteran is permanently unemployable.”

• Unfortunately, SDAT cannot accept the VA Summary of Benefit letter; the VA’s letter must show the 100% service-connected permanent and total rating and the rating decision date.

  “Unfortunately, SDAT cannot accept the VA Summary of Benefit letter.”

The statute’s definition of surviving spouse requires someone who has not remarried. A surviving spouse of a disabled veteran gets the exemption on three kinds of home: the home the veteran owned that already had the exemption, a home the veteran occupied that did not, if the veteran was domiciled in Maryland at death, and a later home the spouse buys, equal to the exemption for the former home. In each case the spouse must own and reside in the home, and the veteran must have been a disabled veteran under the definition above (a permanent 100% rating, or one awarded after death).

A separate branch covers the surviving spouse of someone who died in the line of duty: the home must have been owned by that person at death, bought by the surviving spouse within 2 years of the death if the person or the spouse was domiciled in Maryland at the date of death, or acquired after the spouse qualified for a former home, to the extent of the previous exemption. SDAT also says a spouse who remarries and later divorces is not entitled to the exemption.

A disabled active duty service member also qualifies under 7-208. The member must be in active military, naval, air, or space service with a service-connected physical disability that is reasonably certain to continue for life and was not caused by misconduct, and applies on the Department’s form with a certification from a Maryland-licensed physician or the VA. SDAT says the member must also provide proof of active duty, and that each year the Certification of Active-Duty Status must be provided to the Department to continue receiving the exemption.

• A surviving spouse is an individual who has not remarried and who is a disabled veteran’s surviving spouse, the surviving spouse of someone who died in the line of duty, or a recipient of Dependency and Indemnity Compensation.

  ““Surviving spouse” means an individual who has not remarried and who:”

• Except as provided in subsections (d) and (e), after a disabled veteran dies, the surviving spouse of the disabled veteran shall receive a disabled veteran’s property tax exemption on the homes described above, if the spouse owns and resides in the home.

  “Except as provided in subsections (d) and (e) of this section, after a disabled veteran dies, the surviving spouse of the disabled veteran shall receive a disabled veteran’s property tax exemption:”

• For a dwelling house subsequently acquired by the surviving spouse, the exemption is equal to the exemption for the former dwelling house when the dwelling house owned by the surviving spouse was transferred by the surviving spouse, if the spouse owns and resides in the new home and qualified under the first two cases.

  “for a dwelling house subsequently acquired by the surviving spouse, equal to the exemption for the former dwelling house when the dwelling house owned by the surviving spouse was transferred by the surviving spouse:”

• The dwelling house may be owned by a surviving spouse of an individual who died in the line of duty, if the home meets one of the three conditions described above.

  “a surviving spouse of an individual who died in the line of duty, if:”

• A home acquired after the surviving spouse qualified for exemption for a former home qualifies only to the extent of the previous exemption.

  “the dwelling house was acquired after the surviving spouse qualified for exemption for a former dwelling house under item 1 or 2 of this item, to the extent of the previous exemption”

• A surviving spouse who remarries but later obtains a divorce is not entitled to the exemption, according to SDAT, which adds an exception for an annulment that makes the later marriage void from the beginning.

  “A surviving spouse who remarries but later obtains a divorce is not entitled to the exemption.”

• A disabled active duty service member is an individual in active military, naval, air, or space service who has a service connected physical disability that is reasonably certain to continue for the life of the service member and was not caused or incurred by misconduct of the service member.

  ““Disabled active duty service member” means an individual in active military, naval, air, or space service who has a service connected physical disability that:”

• A disabled active duty service member shall apply by providing to the supervisor, on the form provided by the Department, a certification of the service member’s disability from a physician licensed to practice medicine in the State or from the U.S. Department of Veterans Affairs.

  “A disabled active duty service member shall apply for an exemption under this section by providing to the supervisor, on the form provided by the Department, a certification of the service member’s disability from a physician licensed to practice medicine in the State or from the U.S. Department of Veterans Affairs.”

Apply with the county office of the State Department of Assessments and Taxation where the home is located, using the 100 Percent Disabled Veteran Exemption Application (the surviving spouse has its own forms). The veteran provides a copy of the discharge certificate and either the VA certification on the application or a rating decision that includes its effective date. The state veterans department says applications may be made at any time, not only by September 1.

If you apply part-way through a taxable year, the supervisor prorates the exemption for the part of the year that remains. If you buy a home and apply within 30 days after settlement, the exemption applies and the tax is abated from settlement. A person may also apply before buying a specific home and receives a letter of preliminary approval or denial within 15 business days. Refunds of tax paid while the exemption was available but not granted can be requested only if you apply within a 3-year period that begins with the calendar year you first became eligible, and SDAT says no refunds go back before tax year 2018-2019.

• A disabled veteran or a surviving spouse of a disabled veteran shall apply for an exemption by providing to the supervisor a copy of the discharge certificate and a VA certification of the disability or a VA rating decision that includes its effective date.

  “A disabled veteran or a surviving spouse of a disabled veteran shall apply for an exemption under this section by providing to the supervisor:”

• Veterans and surviving spouses may apply at any time and do not have to meet the September 1 filing deadline, according to the Department of Veterans and Military Families.

  “Veterans and surviving spouses may apply at any time and do not have to meet the September 1 filing deadline.”

• An exemption is prorated by the supervisor for any part of a taxable year that remains after the date in the year when the veteran or surviving spouse applies for the exemption.

  “An exemption under this section is prorated by the supervisor for any part of a taxable year that remains after the date in the year when the disabled active duty service member, disabled veteran, or surviving spouse applies for the exemption.”

• If a dwelling is transferred to a disabled veteran or surviving spouse who qualifies, the exemption applies and the property tax is abated from the date of settlement, if the buyer applies within 30 days after settlement.

  “if a dwelling is transferred to a disabled active duty service member, disabled veteran, or surviving spouse who qualifies for an exemption under this section, the exemption applies and the property tax is abated from the date of settlement for the purchase of the property, if the transferee applies for the exemption within 30 days after the settlement for the purchase of the property.”

• A disabled veteran may apply for a refund of State, county and municipal property tax paid on the dwelling house while the exemption was available only if the veteran applies for the exemption during the 3-year period beginning with the calendar year in which the veteran initially became eligible.

  “only if the disabled active duty service member or disabled veteran applies for the exemption during the 3–year period beginning with the calendar year in which the disabled active duty service member or disabled veteran initially became eligible for an exemption under this section.”

A credit is not the exemption. Section 9-265 lets Baltimore City, a county or a municipal corporation grant a credit against its own property tax on the dwelling house of a disabled veteran. It is optional for each local government, so ask your county or city whether it grants one.

As Chapter 646 of 2026 (House Bill 1611, approved May 26, 2026) left the section, the veteran’s federal adjusted gross income for the preceding taxable year may not exceed $150,000 if filing an individual return or $300,000 if filing a joint return, and the credit equals 50% of the local tax if the service-connected rating is at least 75% and the veteran does not qualify for the 7-208 exemption, or 25% if the rating is at least 50% but not more than 74%. The change applies to taxable years beginning after June 30, 2026; before it the limit was lower.

Chapter 647 of 2026 (House Bill 842, approved May 26, 2026) added section 9-267.1, which lets a county or city grant a credit to a surviving spouse who is ineligible for the 7-208 exemption. It is optional and applies to taxable years beginning after June 30, 2026.

• The Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation may grant, by law, a property tax credit against the county or municipal corporation property tax on a dwelling house if the home is owned by a disabled veteran, the income test is met and the application requirements are met.

  “The Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation may grant, by law, a property tax credit under this section against the county or municipal corporation property tax imposed on a dwelling house if:”

• The disabled veteran’s federal adjusted gross income for the immediately preceding taxable year does not exceed $150,000 if filing an individual income tax return, or $300,000 if filing a joint income tax return.

  “the disabled veteran’s federal adjusted gross income for the immediately preceding taxable year does not exceed: (i) $150,000, if filing an individual income tax return; or (ii) $300,000, if filing a joint income tax return”

• The credit equals 50% of the county or municipal corporation property tax on the dwelling house if the disabled veteran’s service-connected rating is at least 75% and the veteran does not qualify for the 7-208 exemption.

  “50% of the county or municipal corporation property tax imposed on the dwelling house if the disabled veteran’s service–connected disability rating is at least 75% and the disabled veteran does not qualify for a property tax exemption under § 7–208 of this article; or”

• For the credit, a disabled veteran is one the VA has declared to have a permanent service-connected disability of at least 50% (or a nonpermanent service-connected disability of 100%).

  “has been declared by the U.S. Department of Veterans Affairs to have a permanent service–connected disability of at least 50%”

• A county or city may grant, by law, a property tax credit against its property tax on the dwelling house of a surviving spouse if the surviving spouse is ineligible for the property tax exemption under section 7-208.

  “The Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation may grant, by law, a property tax credit against the county or municipal corporation property tax imposed on the dwelling house of a surviving spouse if the surviving spouse is ineligible for the property tax exemption under § 7–208 of this article.”

• This Act shall take effect June 1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026.

  “this Act shall take effect June 1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026.”

Four 2026 laws and bills touch these benefits. Chapter 689 (Senate Bill 194) changed the veteran test in 7-208 and 9-265 and added space service, effective July 1, 2026 and applying to taxable years beginning after June 30, 2026 (see above). Chapter 646 (House Bill 1611) raised the 9-265 credit’s income limit, and Chapter 647 (House Bill 842) added the 9-267.1 spouse credit; both apply to taxable years beginning after June 30, 2026.

Chapter 647’s original text would also have removed the “within 2 years” limit and the “to the extent of the previous exemption” rule for a line-of-duty spouse’s home in 7-208(b)(1)(iii). The current statute text still has both, so they remain law as of October 30, 2026. HB 644 would have altered the application requirements for the surviving spouse exemption; its page shows a first reading and a hearing date of February 17 and nothing after. SB 980 passed the Senate and passed the House with amendments on April 13, 2026; its page history ends there and shows no Senate concurrence and no governor approval, so it is not law as of October 30, 2026.

The statute text is the version on mgaleg.maryland.gov as of October 30, 2026, with later enactments included. The SDAT page is an Internet Archive capture of August 7, 2026. Check the General Assembly site each spring and SDAT for a new application form.

• Section 3 of Chapter 689, which carries the changes to the Tax-Property Article, shall be applicable to all taxable years beginning after June 30, 2026.

  “SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall be applicable to all taxable years beginning after June 30, 2026.”

• This Act shall take effect July 1, 2026.

  “SECTION 6. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2026.”

• HB 644 of 2026 would have altered the application requirements for a certain property tax exemption for a dwelling house owned by the surviving spouse of a disabled veteran; its page shows no action after the hearing notice.

  “Altering the application requirements for a certain property tax exemption for a dwelling house owned by the surviving spouse of a disabled veteran.”