Eligible Funds Property Tax Exemption
Property tax exemption (base $5,000; may be higher after a municipal "change in level of assessment") based on the portion of purchase price paid with eligible funds such as veteran's pension, bonus, insurance, mustering-out pay, or POW compensation.
State BenefitNew YorkTax Benefits
Verified May 12, 2026 against tax.ny.gov
At a glance
- Benefit type
- Tax Benefits — New York
- Who it's for
- Veterans
- VA rating needed
- No rating requirement
- Estimated value
- Base $5,000 exemption (may be increased by jurisdiction)
- Where it applies
- New York
- Last verified
- May 12, 2026
What is Eligible Funds Property Tax Exemption?
Eligible Funds Property Tax Exemption is a New York tax benefits benefit for veterans. Property tax exemption (base $5,000; may be higher after a municipal "change in level of assessment") based on the portion of purchase price paid with eligible funds such as veteran's pension, bonus, insurance, mustering-out pay, or POW compensation. The listed value is Base $5,000 exemption (may be increased by jurisdiction).
Who qualifies
- Veterans
- Available to any veteran
- New York residency
Who is eligible
Eligibility
Must be a veteran who purchased property using "eligible funds" — defined by NYS Tax as a veteran's pension, bonus or insurance monies (or dividends or refunds on such insurance), compensation paid to prisoners of war, and mustering-out pay. The property must be the veteran's primary residence. Eligible funds do NOT include VA-guaranteed mortgage loan proceeds.
What Eligible Funds Property Tax Exemption covers
Covers
Exemption based on the assessed value attributable to the proportion of the purchase price paid with eligible funds. Base statutory maximum is $5,000; an individual municipality may increase this following a municipal-wide reassessment via a "change in level of assessment" adjustment (a historical convention sometimes cited as up to $7,500 or more).
Limitations
Mutually exclusive with the Alternative Veterans Exemption (458-a) and the Cold War Veterans Exemption (458-b) — a veteran may only receive ONE of the three.
How to apply for Eligible Funds Property Tax Exemption
How to apply
File Form RP-458 (Application for Veterans Exemption From Real Property Taxation) with your local assessor by the taxable status date (typically March 1). Provide proof of eligible funds used in purchase (pension records, mustering-out pay documentation, etc.) and DD-214.
Verified information & sources
- Last verified
- May 12, 2026
- Official source
- tax.ny.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
How VetUnlock verifies benefitsFrequently asked questions about Eligible Funds Property Tax Exemption
Who qualifies for Eligible Funds Property Tax Exemption?
Eligible Funds Property Tax Exemption is for Veterans; available to any veteran; new york residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Eligible Funds Property Tax Exemption worth?
The listed value is Base $5,000 exemption (may be increased by jurisdiction). Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Eligible Funds Property Tax Exemption?
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Eligible Funds Property Tax Exemption?
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.
Other New York Tax Benefits
- Alternative Veterans Property Tax Exemption15% exemption on assessed value for wartime veterans (max $12,000 base, $8,000 combat, $40,000 disability — totals capped per municipality).
- Disability Add-On to Alternative Veterans Property Tax ExemptionUp to 75% combined exemption (with caps)Disability rating-based ADDITIONAL property tax exemption on top of the wartime/combat tiers under RPTL Section 458-a (max 75% combined).