The $0 Property Tax Revolution (HB 2792): Arizona Property Tax Exemption for Veterans

February 12, 2026, wasn't just another Wednesday in Arizona. It was the day Governor Katie Hobbs signed HB 2792 into law, and changed the game for thousands of our state's most deserving residents.

If you're a veteran with a 100% service-connected disability rating, I've got news that'll hit different than your usual property tax bill: You now qualify for a complete property tax exemption on your primary residence.

Zero. Zilch. Nada.

Let that sink in for a second.

What HB 2792 Actually Means

The Arizona property tax exemption for veterans isn't new, but this? This is revolutionary.

Previously, disabled veterans could get partial exemptions. A little relief here, a small break there. HB 2792 Arizona legislation took that patchwork system and said, "Nope. If you gave everything in service to this country, you shouldn't be paying property taxes on your home."

Here's who qualifies:

100% Service-Connected Disabled Veterans: If the U.S. Department of Veterans Affairs has rated you at 100% disability due to your service, your primary residence in Arizona is now completely exempt from property taxation. We're talking about savings of $2,000 to $5,000+ per year depending on your home's value.

Surviving Spouses: This exemption doesn't disappear if the unthinkable happens. Surviving spouses maintain the full exemption as long as they don't remarry and the property remains their primary residence. That's not just tax policy, that's honoring a family's sacrifice.

The Real Numbers Behind the Revolution

Let's get specific, because "tax exemption" can feel abstract until you see what it actually means in your bank account.

Say you own a home in Goodyear valued at $400,000 (pretty standard for the West Valley). Your annual property tax bill typically runs around $3,600-$4,000.

Under HB 2792? $0.

That's an extra $300+ per month staying in your pocket. Every month. For as long as you own that home.

Over ten years, we're talking about $40,000 in savings. Twenty years? You're looking at $80,000+ that you're not sending to the tax assessor.

For veterans on fixed disability incomes, this isn't just helpful, it's life-changing.

How This Connects to Our Mission

Here at Rewarding Heroes, we've always believed that those who serve our communities, veterans, educators, first responders, deserve more than a handshake and a thank-you-for-your-service. They deserve tangible financial relief.

That's why we created our $8,000 flat-fee real estate model. When you buy or sell with us, you're not paying 3% commission that scales with your home price. You're paying a simple, transparent $8,000 per transaction side (on homes up to $600,000).

Now, with the disabled veteran property tax exemption Arizona offers through HB 2792, we're seeing our clients stack savings:

• Buying a home: Save $10,000+ on commission vs. traditional agents

• Annual property taxes: Save $3,000-$5,000+ every year as a 100% disabled veteran

• Over a decade: We're talking about $50,000-$80,000+ staying with your family instead of going to commissions and taxes

What Changed (and What You Need to Know)

HB 2792 didn't just create new exemptions, it clarified and streamlined the entire system.

The Mutual Exclusivity Rule: You can't double-dip. If you qualify under multiple exemption categories (say, you're a disabled veteran and meet income requirements for another exemption), you have to pick one. The good news? For 100% disabled veterans, this is almost always the best option since it's a complete exemption.

Automatic Annual Adjustments: Starting in tax year 2026, assessment limits for various exemption categories automatically adjust based on the federal house price index. This means the system keeps pace with the market without requiring new legislation every few years.

Immediate Effect: Unlike some laws that sit around waiting for implementation, HB 2792 took effect immediately upon signing. That means if you qualify, you can start the application process right now for the current tax year.

How to Actually Claim Your Exemption

Knowing you qualify is step one. Actually getting that $0 tax bill? That requires some paperwork (sorry, it's still government).

Here's the straightforward process:

1. Gather your documentation: You'll need your DD-214 (discharge papers) and your VA rating letter showing 100% service-connected disability.

2. Contact your county assessor: In Maricopa County, that's the Maricopa County Assessor's Office. You can usually start the application online.

3. File before the deadline: Most counties require exemption applications by a specific date (often March 1st for the current tax year). Don't sleep on this.

4. Primary residence requirement: Make sure the property is your actual primary residence. Investment properties and second homes don't qualify.

5. Wait for confirmation: The county will process your application and send confirmation. Once approved, it's automatic renewal each year, you don't have to reapply.

Why This Matters Beyond the Money

Look, $4,000 per year is incredible. But this law represents something bigger than dollars and cents.

It's Arizona saying, "We see you. We recognize what you've given. And we're going to make sure that when you plant roots here, you can actually keep them without worrying about the tax assessor."

For veterans who've spent years, sometimes decades, moving from base to base, assignment to assignment, having a home that's truly secure (not just from mortgage concerns but from property tax burdens) hits different.

We work with military families regularly, especially around Luke Air Force Base and the West Valley. And if you’re still narrowing down where to buy, our Spring Training, New Beginnings post is a great place to start if you want West Valley options that feel exciting, fresh, and easy to fall in love with.

The conversation used to be: "Can we afford the monthly payment?" Now it's: "Wait, you're telling me we'll never pay property taxes here again?"

That's a different kind of financial stability. That's generational wealth protection.

Stacking Your Savings (The Rewarding Heroes Way)

Here's where we get practical about maximizing every benefit available to you.

If you're a 100% disabled veteran looking to buy or sell in Arizona, here's your money-saving playbook:

When Buying:

• Use Rewarding Heroes' $8,000 flat fee (save $10,000+ vs. traditional 3% commission)

• Apply for your HB 2792 exemption immediately after closing

• Year one savings on a $400K purchase: $13,000-$15,000+ in commission and taxes combined

When Selling:

• Use our flat-fee structure (again, $8,000 vs. $12,000-$15,000 traditional)

• If you're upsizing and staying in Arizona, that property tax exemption transfers to your new primary residence

• Lifetime savings potential: Massive

Long-Term Strategy:
The real magic happens when you plant roots. Own that home for 20 years with zero property tax, and you're looking at $60,000-$100,000+ in savings depending on your home's value and Arizona's tax rates over time.

The Fine Print (That Actually Matters)

A few important notes that could affect your situation:

Not All Disabilities Qualify: This is specifically for veterans with a 100% service-connected disability rating from the VA. If you're rated lower (70%, 80%, etc.), you may still qualify for partial exemptions, but not the full HB 2792 benefit.

Primary Residence Only: Investment properties, vacation homes, and rental properties don't qualify. This has to be where you actually live.

Surviving Spouse Remarriage: If you're a surviving spouse benefiting from this exemption and you remarry, the exemption ends. It's designed to honor the original veteran's service, and the state draws the line at remarriage.

HOA Fees Still Apply: This exempts you from county property taxes, but if you're in a community with HOA fees, those still apply. They're not taxes, they're contractual agreements.

What's Next for Arizona Veterans?

HB 2792 is a huge win, but it’s part of a larger trend of Arizona becoming increasingly veteran-friendly — and part of what I’m calling veteran property tax relief 2026.

And if you’ve been hearing people ask, “Is this like HB 2792 Arizona… or is it HB 2792 vs. HB 2792 Arizona?” — same bill, same massive impact. (And yes, some folks are also searching HB 2792 Arizona when they mean this exact law.)

Quick heads-up: You may also see people referencing HB 2792 Arizona in the same breath as other veteran benefit bills (like “HB 2792 Arizona” being mixed up with other bill numbers). If you’re trying to confirm your eligibility, the key is the outcome: the $0 property tax exemption for 100% disabled veterans and qualifying surviving spouses.

If you’re not 100% disabled, don’t tune out. Arizona still has versions of a disabled veteran property tax exemption Arizona residents can qualify for at lower ratings — it’s just not the full $0 exemption described in this post.

Between Luke Air Force Base bringing in new military families, growing veteran communities throughout the West Valley, and programs like ours specifically designed to reward those who serve, Arizona is positioning itself as the place for military families to transition to civilian life.

We expect to see:

• More veteran-focused housing developments (especially 55+ communities like Victory at Verrado)

• Increased veteran business ownership and entrepreneurship

• Continued legislative support for military families

The momentum is real, and HB 2792 is fuel on that fire.

FAQ

Who qualifies for the Arizona property tax exemption for veterans under HB 2792?

Veterans with a 100% service-connected disability rating from the U.S. Department of Veterans Affairs qualify for complete property tax exemption on their primary residence. Surviving spouses also qualify as long as they don't remarry and maintain the property as their primary home.

How much money will I actually save with the HB 2792 exemption?

It depends on your home's assessed value, but most Arizona homeowners save between $2,000-$5,000+ annually. On a $400,000 home, you're typically looking at around $3,600-$4,000 per year in property tax savings. Over 20 years, that's $70,000-$80,000+.

Can I combine the veteran property tax exemption with other exemptions?

No. HB 2792 includes a mutual exclusivity clause, meaning you can only claim one property tax exemption category. For 100% disabled veterans, the complete exemption under HB 2792 is almost always the best choice.

When did HB 2792 take effect?

Governor Hobbs signed HB 2792 on February 12, 2026, and it took effect immediately. You can apply for the exemption right now through your county assessor's office.

Does the exemption transfer if I move to a different home in Arizona?

Yes, as long as the new property becomes your primary residence, the exemption transfers. You'll need to file new paperwork with the assessor's office in the county where your new home is located.

What happens if I'm a surviving spouse and I remarry?

Unfortunately, the exemption ends upon remarriage. The law is designed to honor the original veteran's service, and the state has drawn the line at surviving spouses remarrying.

Final Thoughts

HB 2792 isn't just good tax policy: it's Arizona putting its money where its mouth is when it comes to supporting veterans.

If you've given everything in service to this country, you deserve a home where the property tax bill reads $0.00. Every year. For life.

And if you're in the market to buy or sell that home? You deserve an agent who's equally committed to keeping more money in your pocket: not taking it in inflated commissions.

That's the Rewarding Heroes difference. Whether it's legislative wins like HB 2792 or our transparent $8,000 flat-fee model, we're here to make sure heroes keep the financial rewards they've earned.

Ready to Maximize Your Benefits?

If you're a 100% disabled veteran looking to buy, sell, or just want to understand how HB 2792 affects your current home, let's talk strategy.

We'll walk you through the exemption application process, show you exactly how much you'll save, and if you're buying or selling, we'll stack those savings with our flat-fee model.

Give us a call at 623-400-5957 or email [email protected]

Let's make sure every dollar you've earned through your service stays with you and your family: where it belongs.

Andrew Texidor, Realtor and Founder of Rewarding Heroes and Clearly Sold brokered by HomeSmart is a Certified AI Agent