# Illinois — State Property Tax Exemptions for Disabled Veterans — Exemption Amounts, Disability Rating Thresholds, and Eligibility Rules

For Illinois, statute citation is 35 ILCS 200/15-169 (homestead exemption for veterans with disabilities); minimum disability rating is 30% — a service-connected disability of 30% or more, as certified by the U.S. Department of Veterans Affairs; exemption at 100% disability is At 70% or more (including 100%), the first $250,000 in equalized assessed value of the property is exempt from taxation; exemption at lower ratings is Graduated: 30% to less than 50% rating — $2,500 annual reduction in equalized assessed value; 50% to less than 70% — $5,000 reduction; 70% or more — first $250,000 in equalized assessed value fully exempt; home value cap is The full exemption at 70%+ is limited to the first $250,000 in equalized assessed value; value above that remains taxable, verified against its source on 2026-08-18.

- **State:** Illinois _(our reading, not quoted from the source)_
- **Statute citation:** 35 ILCS 200/15-169 (homestead exemption for veterans with disabilities) _(verified: appears in the quote below)_
- **Minimum disability rating:** 30% — a service-connected disability of 30% or more, as certified by the U.S. Department of Veterans Affairs _(verified: appears in the quote below)_
- **Exemption at 100% disability:** At 70% or more (including 100%), the first $250,000 in equalized assessed value of the property is exempt from taxation _(verified: appears in the quote below)_
- **Exemption at lower ratings:** Graduated: 30% to less than 50% rating — $2,500 annual reduction in equalized assessed value; 50% to less than 70% — $5,000 reduction; 70% or more — first $250,000 in equalized assessed value fully exempt _(verified: appears in the quote below)_
- **Home value cap:** The full exemption at 70%+ is limited to the first $250,000 in equalized assessed value; value above that remains taxable _(verified: appears in the quote below)_
- **Surviving spouse eligible:** Yes — carries over to the surviving spouse as long as the spouse holds legal or beneficial title, permanently resides there, and does not remarry; transferable to a new primary residence up to the most recent exemption amount _(verified: appears in the quote below)_
- **Annual adjustment:** No — dollar amounts are fixed in statute until amended by the General Assembly; annual reapplication is required except for veterans rated 100% permanently and totally disabled _(verified: appears in the quote below)_
- **Primary residence required:** Yes — the property must be used as a qualified residence by the veteran with a disability _(verified: appears in the quote below)_

## What the source says

> of 70% or more, as certified by the United States Department of Veterans Affairs as of the date the application is submitted for the exemption under this Section for the applicable taxable year, then the first $250,000 in equalized assessed value of the property is exempt from taxation under this Code

## Source

- https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=003502000K15-169

Last verified: 2026-08-18. Review by: 2027-08-18.
Part of [State Property Tax Exemptions for Disabled Veterans — Exemption Amounts, Disability Rating Thresholds, and Eligibility Rules](https://referencesource.org/veteran-property-tax-exemptions-by-state/).