What is the new Cold War Veterans Property Tax Exemption in NYC?
On December 19, 2025, NYC officially enacted Intro 0740-2024, creating the Cold War Veterans Property Tax Exemption for the first time in city history. This law brings NYC in line with every other major tax jurisdiction in New York State, which had already adopted similar exemptions years ago. The exemption reduces 15% of your property’s assessed value, capped at $48,000 (adjusted by class ratio). For eligible NYC homeowners, that translates to average savings of over $900 per year. Tens of thousands of veteran homeowners across the five boroughs are now eligible. To apply, contact the NYC Department of Finance or reach out to our team for guidance on where to start.
Do I qualify for the NYC Cold War veteran tax exemption?
If you served on active duty in the U.S. military any time between September 2, 1945 and December 26, 1991 and were discharged or released under honorable conditions, you qualify. You do not need to have served in combat. You do not need a wartime medal or expeditionary service. Cold War era service is enough. The benefit applies to your primary residence in New York City. If you own a home in Staten Island or Brooklyn and served during this period, you should be filing for this exemption now.
How many veteran property tax exemptions does NYC offer?
NYC offers three veteran property tax exemptions, and many veteran homeowners are not claiming any of them. The Alternative Veterans Exemption covers wartime veterans from WWI through Iraq/Afghanistan, providing 15% off assessed value for wartime service, plus an additional 10% for combat service and more for service-connected disability. The Cold War Veterans Exemption is brand new as of December 2025. The Eligible Funds Veterans Exemption applies to veterans who used military pension, insurance, or dividends to purchase their home, with savings capped at $5,000. Cold War veterans are now also eligible for the Alternative Veterans Exemption in addition to the new Cold War exemption. If you are a veteran homeowner in NYC, talk to us about which exemptions you should be filing for.
Is military retirement pay taxed in New York?
No. All military retirement pay, Survivor Benefit Plan annuities, and VA disability compensation are 100% exempt from New York State income tax, New York City income tax, and Yonkers income tax. Beyond that, Governor Kathy Hochul signed legislation in December 2025 granting any New York veteran with a 100% service-connected disability a complete property tax exemption on their primary residence. NYC has not yet adopted this expanded benefit locally, but pressure from constituents may help move it forward. If your accountant has been withholding city or state tax on your military retirement pay, that needs to stop.
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