Tax breaks and credits available for Veterans and their employers Property tax exemptions offer relief for New York State’s heroes
For Release: Immediate,
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The New York State Department of Taxation and Finance today encouraged veterans to take advantage of valuable tax exemptions and credits available to them, their families, and employers.
“These exemptions and credits are one small way we can show our gratitude to the brave and dedicated individuals who currently serve or have served in our military,” said Acting Commissioner of Taxation and Finance Nonie Manion. “We’re proud of our veterans and grateful for the sacrifices they’ve made to protect the freedoms we all enjoy. I encourage all veterans to take advantage of these valuable programs.”
New York State Division of Veterans' Affairs Director Eric J. Hesse said, "Governor Cuomo is dedicated to ensuring that New York is a great state for veterans and their families to call home. Affording these tax breaks and credits to veterans and their families in New York on their properties, in their school districts and their businesses demonstrates Governor Cuomo's commitment to making New York the place veterans and their families choose."
Property tax exemption
New York’s veterans are eligible for valuable property tax exemptions from local governments statewide.
More than half a million New York veterans now benefit from property tax exemptions. The exemptions can reduce the property tax burden of a wartime veteran by 15%, or as much as 25% if the veteran served in a combat zone. Many local governments also offer a Cold War veterans’ exemption of up to 15% for veterans who served on active duty between 1945 and 1991.
Both categories of exemption allow the percentage of the exemption to be increased to as high as 50% if the veteran was disabled as a result of his or her military service.
Governor Cuomo signed legislation in September that allows the Cold War veterans exemption to be granted for as long as the veteran owns the property, if the local government or school district so chooses. Otherwise, the exemption would be limited to a 10-year term.
In addition, legislation signed last month by the Governor extended the option for school districts to grant the eligible funds veterans’ exemption. In 2013 and 2016 the alternative veteran's property tax exemption and Cold War property tax exemption were amended to give school districts the option to allow the exemption, so now each veterans property tax exemption is consistent and allowed to be applicable to school taxes.
Of the 679 school districts statewide, 276 are now granting at least one of the available veterans’ exemptions.
Because the types and amounts of exemptions offered and application deadlines vary, veterans should contact their local assessor’s office for details on how to obtain these valuable tax benefits. For local contact information, visit our Municipal Profiles website.
Hire a veteran credit
There are two state credits available that encourage businesses to hire veterans. The hire a veteran credit can be claimed by:
- corporations subject to franchise tax; or
- individuals, estates, and trusts taxable under personal income tax laws.
Employers that have hired veterans who began working on or after January 1, 2014, but before January 1, 2018, may qualify for this state business tax credit worth as much as $15,000 per veteran. The veteran must have worked for one year or more for at least 35 hours each week.
Business owners may claim the credit in the tax year in which the qualified veteran completes one year of employment. The credit may be claimed for tax years beginning on or after January 1, 2015, but before January 1, 2019.
The amount of the credit is equal to 15% of the total wages paid to a disabled veteran during their first full year of employment. The credit is worth up to $15,000 per disabled veteran. For nondisabled veterans, the credit is equal to 10% of the total wages up to $5,000 per nondisabled veteran.
To claim the credit, the employer must have the veteran certify that they qualify as an eligible veteran on Form DTF-75, Employee Affidavit for the Hire a Veteran Credit.