Oklahoma Leaves VA Disability Compensation Out of the Income Test for the Additional Homestead Exemption and the Senior Valuation Freeze

Two of Oklahoma's ordinary property tax programs are means-tested, and for both of them VA disability compensation is not income. The additional homestead exemption. 68 O.S. 2890(A) exempts a further $1,000 of assessed value, on top of the ordinary $1,000 homestead exemption, for a head of household whose gross household income for the preceding calendar year did not exceed $30,000. Subsection B defines gross household income as income of every type received by everyone in the household, taxable or not, and then says it "shall not include any veterans' disability compensation payments". Apply to the county assessor by March 15, or within thirty days of a notice of valuation increase if later. The application is annual, except that a person 65 or older who has qualified before need not reapply, but must tell the assessor if income goes over the limit. The senior valuation freeze. Article X, section 8C of the Constitution freezes the taxable value of the homestead of a head of household 65 or older whose household income does not exceed a limit set from HUD figures. 68 O.S. 2890.1(A) says that for section 8C "gross household income" is as defined in section 2890, so the same exclusion applies. Where it does count. The other income definitions in Title 68 list "veterans' disability compensation" as income: the circuit breaker property tax credit for people 65 or older or totally disabled (68 O.S. 2904(3)), the personal property tax exemption for heads of households (2949(D)) and the sales tax relief credit (5012). A veteran whose income is mostly VA compensation can therefore get the additional homestead exemption and the freeze and still be over the limit for the circuit breaker. What it is worth. $1,000 of assessed value; the Oklahoma County Assessor puts the ordinary $1,000 homestead exemption at a saving of $87 to $134 a year depending on location, and the additional one is the same size. A 100 percent permanently disabled veteran does not need it, since that veteran's whole homestead is exempt; it matters to everyone else. Edition. The text is the Legislature's complete Title 68, printed December 31, 2025. Section 2890 was last amended by Laws 2023, 1st Extraordinary Session, chapter 5. The 2026 session's acts were not swept for this section.