100% VA Disabled? Understanding Oklahoma Property Taxes When Buying a Home

For many veterans buying a home in Oklahoma, one of the first questions is:

“If I am 100% disabled through the VA, will I have to pay property taxes on my home?”

Oklahoma provides an important property-tax benefit for qualifying disabled veterans.

For eligible homeowners, the exemption may apply to the full fair cash value of a qualifying homestead once the proper requirements are met.

That can be a significant financial benefit — but it is important to understand that the exemption is not simply automatic when you purchase a home.

The Oklahoma Disabled Veteran Property-Tax Exemption

Qualifying veterans may be eligible for an exemption from ad valorem property taxes on their Oklahoma homestead. However, eligibility and filing requirements must be satisfied. The homeowner generally needs to work with the county assessor and provide the required documentation.

The Exemption Is Not Automatic

Buying a home does not automatically place the exemption on the property.

After purchasing a home, make sure you understand:

• Which county assessor handles your property
• Which forms are required
• What VA documentation is needed
• Whether a homestead filing is also required
• When documents must be submitted
• Whether you are establishing a new exemption or transferring an existing Oklahoma exemption

This is one of those situations where completing the correct paperwork can make a substantial financial difference.

What Happens If You Buy a Home During the Year?

Timing matters.

A veteran establishing the exemption for the first time may have a different tax situation than a qualifying veteran who already had an exemption on another Oklahoma homestead and purchases a replacement home during the same year.

How Are Property Taxes Prorated at Closing?

Property-tax proration is another area that can cause confusion.

When a home is sold, property taxes are typically addressed as part of the closing calculations between the seller and buyer. The contract, closing date, available tax information and title company calculations determine how those taxes are allocated between the parties.

That means the veteran’s future property-tax exemption and the tax proration shown on the closing statement are two separate issues.

A qualifying veteran should not automatically assume there will be no property-tax adjustment at closing simply because they may qualify for the exemption after purchasing the property.

Why Filing With the County Matters

After closing, do not assume the exemption has been handled automatically. Make sure you know exactly what needs to be filed and when.

Depending on the circumstances, you may need to provide:

• Proof of ownership
• Proof of occupancy
• VA disability documentation
• Oklahoma tax forms
• Homestead documentation
• Information related to a previous Oklahoma homestead

Your county assessor is the best source for confirming current filing requirements.

Why Work With an Experienced Oklahoma Real Estate Broker?

A real estate broker should not replace your tax advisor, attorney, county assessor or VA representative. However, a seasoned broker can help you identify questions that need to be addressed before closing, communicate with the lender and title company and help make sure important issues are not overlooked
.

When I work with veteran homebuyers, my goal is to help them understand not only the property they are purchasing, but also the financial considerations surrounding that purchase.

The goal is simple:

Fewer surprises, better preparation and greater peace of mind before and after closing.

Buying a Home in the Oklahoma City Metro?

If you are a veteran considering a home purchase in Oklahoma City, Edmond, Moore, Norman, Mustang, Yukon, Newcastle, Choctaw or another surrounding community, I would be happy to help you understand the home-buying process and the questions you should be asking before making an offer.

VA and Tax Disclaimer

This information is provided for general educational purposes only and should not be considered legal, tax or financial advice. I am a real estate broker, not a tax professional, attorney or representative of the U.S. Department of Veterans Affairs. This website and its author are not affiliated with, sponsored by or endorsed by the U.S. Department of Veterans Affairs. Eligibility requirements, tax laws, forms and filing procedures may change. Veterans should verify their individual eligibility and filing requirements directly with the U.S. Department of Veterans Affairs, Oklahoma Tax Commission and the county assessor where the property is located.

Babs Lewis | Oklahoma City Metro Real Estate Broker