Tax Exemptions for Returning or Disabled Veterans

Do you know a Returning Veteran or Disabled Veteran? Please share the following information with your Veteran friends/spouses to see if they might qualify for these real estate the tax exemptions... Just another way to thank them for their service!

Returning Veterans’ Homestead Exemption To qualify for this exemption, you must.....

  • Be an Illinois resident who has served as a member of the U.S. Armed Forces, Illinois National Guard, or U.S. Reserve Forces;
  • Return from active duty in an armed conflict involving the armed forces of the U.S.;
  • Be liable for the payment of property taxes; and
  • Have equitable legal interest in the property as your principal residence.

The exemption provides a $5,000 reduction on the equalized assessed value off of the principal residence’s equalized assessed value. The exemption will be applied the year the veteran returns home from armed conflict and the following taxable year. You can receive the exemption again if you return to active duty in a subsequent year. A veteran who passes during active duty still qualifies for the exemption. Documentation: Department of Defense DD Form 214 certified by the recorder of deeds, or Illinois Department of Veterans’ Affairs or military orders and travel voucher if you are still on active duty when returning home.

Disabled Veterans’ Standard Homestead Exemption To qualify for this exemption, you must...

  • Be an Illinois resident who has served as a member of the U.S. Armed Forces on active duty or state active duty, Illinois National Guard, or U.S. Reserve Forces, and not dishonorably discharged.
  • Have at least a 30% service-connected disability certified by the U.S. Department of Veterans’ Affairs.
  • Own and occupy the property as the primary residence on January 1 of the assessment year or become a resident of a facility licensed under the Nursing Home Care Act or a facility operated by the United States Department of Veterans Affairs as long as the residence is vacant or occupied by the spouse.
  • Have a total EAV of less than $250,000 for the primary residence, excluding the EAV of property used for commercial purposes or rented for more than six months.

This exemption reduces the equalized assessed value (EAV). Beginning with the 2015 (payable 2016) year, the reduction is:

  • All EAV from the property (before taxes are calculated) for a veteran with at least a 70% service-connected disability.
  • $5,000 of EAV from the property (before taxes are calculated) for a veteran with a 50%-69% service-connected disability.
  • $2,500 of EAV from the property (before taxes are calculated) for a veteran with a 30%-49% service-connected disability.

Documentation: A first-time applicant will need to provide a certified Department of Defense DD Form 214 and a Disability Certification Letter from the U.S. Department of Veterans’ Affairs for the current assessment year. Each year after your first application you will need to fill out a renewal form and provide the current Disability Certification Letter.  The Disabled Person Identification Card is issued by the Illinois Driver’s License Facility. An Application for Illinois Disabled Person Identification Card must be filled out by a physician and returned to the Illinois Driver’s License Facility. The proof of disability card and Disabled Persons’ Homestead Application must be filed with the Supervisor of Assessments Office.

Disabled Veterans’ Exemption-This exemption may be up to $70,000 off the assessed value for certain types of housing owned and used by a disabled veteran or his or her unmarried surviving spouse. The Illinois Department of Veterans’ Affairs determines the eligibility for this exemption, which must be reestablished annually. This exemption is also available on a mobile home. You should contact the Illinois Department of Veterans’ Affairs for more information (http://www.veterans.illinois.gov/contactus.htm). We are informed by the Illinois Department of Revenue if you qualify for this exemption.

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