Connecticut Additional Veterans Property Tax Exemption

The base veteran exemptions in Connecticut are small. The additional exemptions are what make them worth filing for, and they are the part most summaries omit. Section 12-81g(d) is the floor. Any person entitled to an exemption under subdivisions (19) through (26) of section 12-81 who is not receiving and not eligible for the income-tested additional exemption gets an additional exemption equal to one-half of the base amount. Nobody entitled to a base exemption receives only the base amount. Section 12-81g(a) is the income-tested version. A person under the qualifying income limit receives an additional exemption equal to twice the base amount, so the total is three times the base. For a veteran whose VA rating is 100 percent, the statute sets its own income test instead: adjusted gross income not more than $21,000 if married or $18,000 if unmarried. Section 12-81g(b) is a municipal option that has been available since the October 1, 2022 assessment year. A municipality may vote to provide, in place of the subsection (a) additional exemption, an additional exemption equal to three times the subdivision (20) base amount for a veteran with a 100 percent VA rating whose total adjusted gross income, excluding veterans' disability payments, is not more than $24,000 if married or $21,000 if unmarried. The income limit is the part to get right, because the number in the statute is not the number in force. Section 12-81l defines qualifying income as federal adjusted gross income plus any other income not included in it, expressly excluding veterans' disability payments. It then sets the limit at $14,000 unmarried or $16,000 married, but immediately provides that the limit may in no event be less than the corresponding maximum under section 12-170aa(b), the elderly and disabled homeowners circuit breaker, which the Office of Policy and Management adjusts. The operative figure is therefore the current circuit breaker maximum, which is several times the statutory floor. A veteran who reads $14,000 and concludes they earn too much has misread the section. Ask the assessor or the Office of Policy and Management for the figure in force for the assessment year. Excluding veterans' disability payments from qualifying income is itself significant. A veteran whose income is largely VA compensation may be under the limit even when their bank statements suggest otherwise. Section 12-81f is a separate municipal option and the largest of these. A municipality may provide an additional exemption to a veteran entitled to the subdivision (19) exemption, at the municipality's choice either up to $20,000 of assessed value or up to 10 percent of assessed value, subject to an income limit that is the section 12-81l maximum or a higher amount the municipality sets. For a veteran entitled to the subdivision (20) disability exemption, the municipal additional exemption is not less than $3,000 of assessed value. The state reimburses towns for the revenue lost to the subsection (a) and (b) additional exemptions, but that reimbursement is reduced proportionally if the total claimed by all municipalities exceeds the appropriation. That is a state budget mechanic rather than something a veteran can act on, and it does not reduce the exemption itself. A claimant who wilfully fails to disclose all related matters, or who makes a false statement with intent to defraud, forfeits the right to claim the additional exemption. Treat the income declaration seriously.