House Bill 2792, sponsored by House Majority Leader Michael Carbone, has been approved by the Arizona Legislature with unanimous support in the House and strong bipartisan backing in the Senate. The bill provides a full property tax exemption for veterans who are rated as 100 percent service-connected disabled on their primary residence, including cases where the property is jointly owned. Senator David Gowan introduced a similar measure in the Senate.
The legislation was created after discussions with county assessors to address questions that arose following last year’s tax omnibus law. It also allows surviving spouses of qualifying veterans to continue receiving the exemption if they do not remarry, even if they move to another primary residence.
The new law clarifies that income limits apply throughout this section of state law and confirms that exemptions cannot be combined across different categories. This aims to provide consistency for both taxpayers and county officials.
“This bill keeps a simple promise,” said Majority Leader Carbone. “If a veteran sacrifices their health in service to America, the government should not tax them out of their home. We worked directly with county assessors to ensure the law is clear and properly implemented. Preserving homeownership for those who earned it is central to the House Republican Majority Plan and to preserving the American Dream. This law delivers direct relief, limits government reach, and stands up for veterans and their families.”
The law takes effect immediately and will apply starting with tax year 2026. Eligible veterans will see these changes reflected in their property tax payments due in October 2026.
Carbone was elected as a Republican representative for Arizona’s 25th House District in 2023, succeeding Michelle Udall.
