NYC's most disabled veterans could stop paying property tax, but only if the City Council opts in

New York State now lets local governments wipe out the property tax bill on the home of a veteran whose military service left them permanently and totally disabled. Whether a veteran gets that break depends on where they live, and in New York City the answer for now is no: the city has not opted in. With Veterans Day a week away, that gap is getting attention, the Bronx Times reported Wednesday.

What the state law does

Section 458-a(11) of the state Real Property Tax Law allows a full exemption from property taxes, special ad valorem levies and special assessments on the primary residence of a veteran whom the U.S. Department of Veterans Affairs considers permanently and totally disabled as a result of military service. Gov. Kathy Hochul signed the original law on Dec. 19, 2025, the Bronx Times reported.

The rules have shifted since. In February, a chapter amendment made the exemption mandatory for every municipality and delayed it so it would first apply to assessment rolls with taxable status dates on or after Oct. 1, 2026, the state Department of Taxation and Finance told assessors. Then the 2026-27 state budget amended it again, and the subdivision now provides the full exemption "at local option," the department said in a June update. In practice, that means each county, city, town, village and school district decides for itself.

Veterans also have to meet the law's other requirements on service, discharge, ownership and primary residence, according to the Bronx Times.

Where New York City stands

The city has not opted in. Council Member Frank Morano of Staten Island, who chairs the Committee on Veterans, introduced Int. 1051 on Sept. 10. It would make the primary residence of any qualifying seriously disabled veteran fully exempt from city property taxes and related charges, and would take effect immediately. The bill now lists 27 sponsors.

The Veterans and General Welfare committees held a joint hearing on Oct. 21 and laid the bill over without a vote. Testifying that day, the city Department of Veterans' Services said it "supports the intent of this bill" and deferred to the Department of Finance. Several veterans submitted written testimony urging passage. As of Wednesday, Legistar still lists it as laid over in committee.

What it would cost

The Council's Finance Division estimates the exemption would reduce city property tax revenue by about $12.9 million a year, with the full effect in fiscal 2028 and no added spending, since Finance would process applications with existing staff. The estimate uses Census data to assume that about 45% of 4,573 qualifying veterans own and live in homes in the city and already get some kind of exemption. Not every eligible veteran is likely to sign up, which would lower the cost. The mayor's Office of Management and Budget did not provide an estimate.

What it would mean for veterans

New York City already offers partial property tax exemptions to eligible veterans, with larger reductions for combat service or a service-connected disability, the Bronx Times noted. Int. 1051 would go further and eliminate the remaining covered tax for those rated permanently and totally disabled. Even if it passes, homeowners would still need to apply and submit VA documentation.

"Disabled veterans should be exempt if that's what it says in the law, everywhere in New York State," James Kenny, a fully disabled combat veteran in the Bronx, told the Bronx Times.