Eligible Funds Property Tax Exemption
Up to $7,500 property tax exemption based on the portion of purchase price paid with eligible funds such as VA mortgage proceeds or military pension.
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Apply directly through the official New York agency.
About this benefit
Eligibility
Must be a veteran who purchased property using eligible funds — including VA mortgage loans, military pension, mustering-out pay, or other military-related funds. The property must be the veteran's primary residence.
Covers
Exemption of up to $7,500 of assessed value based on the proportion of the purchase price paid with eligible funds. The exact exemption depends on the ratio of eligible funds to total purchase price.
Limitations
Cannot be combined with the Alternative Veterans exemption on the same property. The municipality must have adopted this exemption.
How to apply
File Form RP-458 with your local assessor by the taxable status date. Provide proof of eligible funds used in purchase (VA loan documentation, pension records) and DD-214.
Verified against official source
Last checked 2026-04-30 against www.tax.ny.gov. Always confirm current rates and rules with the New York state agency before applying.
Other New York Tax Benefits
Alternative Veterans Property Tax Exemption
15% 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 Exemption
Disability rating-based ADDITIONAL property tax exemption on top of the wartime/combat tiers under RPTL Section 458-a (max 75% combined).
Up to 75% combined exemption (with caps)
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