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Property Tax Exemptions for Veterans 

In most states, Veterans are eligible for certain exemptions on property taxes, based on disability status. To find out if you qualify, contact your local tax office.   

How to Report Your Tax Exemption 

Follow these steps to let us know if you're eligible for a tax exemption. We'll update your escrow account accordingly.  

  1. Step 1

    Contact Your Local Tax Office

    To find out if you're eligible for a property tax exemption, ask your local tax office and follow their instructions. 

  2. Step 2

    Find Out Your Exemption Amount

    We'll need the dollar amount of your tax exemption so we can update your escrow account. You can find this figure in one of these documents:

    • A letter from your tax office showing the effective date of your exemption and the estimated taxes due after the exemption is applied, even if it's 0.
    • An updated tax bill or tax estimate showing the amount of taxes due after the exemption has been applied, even if it's 0. Keep in mind that Navy Federal won't calculate your taxes based on your assessed value. The assessment notice must include the estimated tax amount, even if it's 0.
    • A prorated tax bill reflecting the taxes due after the exemption is applied. If your exemption is adjusted based on the effective date, you may receive a prorated tax bill. For example, if the tax year is from Jan. 1 to Dec. 31, and your exemption goes into effect on July 1, you'll still owe taxes for  the Jan. 1 -June 30 timeframe.

     

  3. Step 3

    Submit Your Exemption to Navy Federal

    Once you have your tax exemption amount, send us one of the above documents with your exemption dollar figure so we can adjust your escrow account. You can submit your document via:

    • eMessage
    • fax—703-206-3865
    • email—mtg_taxescrow_ltr@navyfederal.org
    • mail—Navy Federal Credit Union, 820 Follin Lane SE, Vienna, VA 22180, Attn: Escrow Disbursement

    As your lender, we'll:

    • update the amount being collected for taxes based on the exemption documents you submit.
    • perform an escrow analysis to update the escrow portion of your monthly mortgage payment.

Helpful Tips About Property Tax Exemptions

  • Keep in mind that a 100% disability doesn't necessarily mean you won't owe any property taxes. Ask your local tax office for details.
  • You may be responsible for fees and special assessments, even if you're exempt from property taxes. Examples include non-ad-valorem taxes and storm water, garbage, local fire and community development fees. Ask your local tax office about these fees.  
  • Some exemptions will result in a reduction in your assessed property value, while others may be a credit applied to your tax bill. Ask your local tax office for more information. 
  • If your tax assessor or tax collector can't provide a tax estimate, Navy Federal won't be able to update the amount you owe in taxes until the new tax bill has been paid. 
  • If your tax collector reports a tax bill to Navy Federal before your exemption is applied, Navy Federal is obligated to pay the bill as reported. If a refund is sent to Navy Federal, it will be deposited back into your escrow account. 
  • Your local tax office is responsible for applying your exemption and issuing your tax bill. If you have questions about how your property tax exemption works, contact them.

Disclosures

This information is intended to provide general information and should not be considered tax advice. Please consult a tax professional for more information.