09/02/2026
A real Nassau County tax bill shows how the Alternative Veterans Exemption works, what it actually saves, what it doesn't cover, and what New York's new 100% P&T exemption could change.
I decided to put this guide together after talking with a Coast Guard veteran friend of mine, Mike, at work.
We spent a significant amount of time trying to figure out the New York veterans property-tax exemption — not just whether he qualified or what percentage he might receive, but what it would actually mean in dollars.
Once we worked through the assessment, percentages, caps and tax rates, we ran into another problem.
Mike is considering a potential move, and there was no simple way for him to determine whether the school district in a potential new location also provided the exemption — or at what level.
That's particularly important on Long Island, where school taxes are often one of the largest parts of the property-tax bill and can exceed the county and town taxes.
So rather than use hypothetical numbers, I'm going to walk through a real 2026 Nassau County tax bill from Island Park, New York.
The veteran in this example has qualifying service, qualifying combat-zone service, a 100% VA service-connected comp rating, the existing Alternative Veterans Exemption, and lives in a school district that adopted the exemption.
Start With the Assessment
This real Island Park property's 2026 Nassau County assessed value is 392. At the time, that equated to an approximate real property value of $675,000.
The 392 assessment is what matters for calculating the exemption.
For this veteran: 15% qualifying service + 10% combat-zone service = 25%.
392 × 25% = 98.
The actual bill shows: ALT VET – COMBAT – GENERAL: 98 exempt.
The veteran also has a 100% VA comp rating. Under New York's Alternative Veterans Exemption, the additional comp-based exemption equals one-half of the VA comp percentage.
100% VA comp ÷ 2 = 50%.
392 × 50% = 196.
The actual bill shows: ALT VET – COMP – GENERAL: 196 exempt.
Original assessment: 392
Service/combat exemption: −98
VA comp exemption: −196
Remaining applicable taxable assessment: 98
That's a 75% reduction in assessed value for the tax lines where the exemption applies. But it does not mean 75% off the entire property-tax bill.
Which Taxes Does the Current Exemption Actually Reduce?
For the county/town tax lines where the Alternative Veterans Exemption applies, the calculation is 392 → 98.
The veteran's taxable assessment is reduced by 75% on these applicable lines. Instead of each tax rate being applied to the full assessment of 392, it is applied to only 98.
Here's what that means in actual dollars on this real 2026 tax bill:
Normal Assessment Veteran Assessment Approx. Savings
County General Fund 392 98 $6.43
County Environmental Bond 392 98 $7.61
Fire Prevention 392 98 $0.86
Nassau Community College 392 98 $60.71
County Police Headquarters 392 98 $281.50
Storm Water Resources 392 98 $8.51
Town General Fund 392 98 $50.26
Town Highway 392 98 $216.76
Town Building/Zoning 392 98 $26.52
Total savings reported on bill $659.20
So you can actually see where the exemption is saving money. The largest savings on this portion of the bill are approximately $281.50 for County Police Headquarters, $216.76 for Town Highway, $60.71 for Nassau Community College, $50.26 for Town General Fund and $26.52 for Town Building/Zoning.
Along with the smaller applicable categories, Nassau County reports $659.20 in total general-tax savings.
The veteran really is receiving the full 75% assessment reduction on these applicable lines: 392 → 98. But that doesn't mean the entire property-tax bill is reduced by 75%.
Now Look at What Doesn't Get Reduced
Several substantial charges on the same tax bill don't receive that 392 → 98 reduction. They remain taxed using the full assessment: 392 → 392.
Tax Category Assessment Used Tax Still Paid
Sewer Collection & Disposal 392 $197.59
County Police 392 $791.91
Fire Protection District 392 $302.28
Lighting District 392 $41.03
Refuse & Garbage District 392 $388.15
Park District 392 $179.73
Refuse Disposal District 392 $173.17
Total 392 $2,073.86
These charges receive no reduction from the current Alternative Veterans Exemption on this bill.
Where the exemption applies: 392 → 98, savings $659.20. Where it doesn't: 392 → 392, charges still paid $2,073.86.
That's how a veteran can receive a 75% assessment reduction and still have a substantial county/town tax bill.
Now Let's Look at the School Taxes
This is where the Island Park example gets even more interesting. The school district has adopted the Alternative Veterans Exemption.
That's important because, on Long Island, school taxes can make up a very large portion of the total property-tax burden. But in this example, there's also a cap.
If the same percentages from the county/town calculation applied without a cap, the veteran would have 98 service/combat exemption plus 196 VA comp exemption, for a total reduction of 294. That would take the assessment from 392 all the way down to 98.
But that's not what happens on the school bill. The actual school bill shows ALT VET – COMBAT – SCHOOL: 50 exempt and ALT VET – COMP – SCHOOL: 100 exempt.
So the school exemption is capped at 150. The calculation becomes 392 − 150 = 242. That's exactly what appears on the actual school-tax bill: 392 → 242.
This gives us three calculations: applicable county/town taxes 392 → 98; unaffected charges 392 → 392; school taxes 392 → 242.
That's why simply asking whether a school district participates isn't enough. You also need to ask: What are the exemption limits?
What Did the School Exemption Actually Save?
The real 2026 school bill shows: service/combat school exemption, 50 exempt assessment = $898.08 saved; VA comp school exemption, 100 exempt assessment = $1,796.17 saved.
Combined school-tax savings: $2,694.25.
Compare that with the county/town savings of $659.20. The school exemption saved more than four times as much in this particular example.
So What Is This Veteran Actually Saving?
Without the veterans exemptions shown on these bills, the approximate tax burden would have been $9,993.76. With the exemptions, the actual remaining tax bill was $6,640.31.
Actual savings: $3,353.45 per year, or approximately $279 per month when annualized.
This veteran was receiving the combined 75% assessment reduction available to him on the applicable general taxes. But once you account for taxes where the assessment falls from 392 to 98, charges where it remains at 392, and school taxes where the local cap only reduces it to 242, the veteran's actual reduction in the entire property-tax burden was approximately 33.6%.
A 75% assessment reduction ultimately reduced the total property-tax burden by only about 34%. So, keep that ratio in mind if you’re trying to ballpark your savings. That's still more than $3,350 per year in real savings, but it shows why the exemption percentage and actual tax savings are not the same thing.
And remember this will take time to go into effect so as the new tax bill comes it will likely also come with an annual increase prior to applying any exceptions. If you’re in Nassau County, NY I highly recommend grieving every year. Theres a great Facebook group run by the Gold Law firm called NASSAU GRIEVE YOUR TAX ASSESSMENT - FREE. It has a wealth of great information and resources on doing this yourself for free.
Why This Gets Difficult When You're Shopping for a Home
If you already own your home, the process is somewhat easier. Submit the appropriate exemption paperwork, make sure your current VA comp information is on file, and see how the exemption ultimately appears on your tax bill.
But if you're shopping for a home, you're trying to figure all of this out before you buy. The seller's current tax bill may contain exemptions that won't transfer to you. You may qualify for veterans exemptions the seller doesn't have.
The school district may participate, may not, or may participate but cap the exemption. On Long Island, where school taxes can exceed the county and town portion of the bill, that can mean a difference of thousands of dollars per year.
There isn't currently a simple countywide list I would rely upon to tell a veteran exactly how every Nassau and Suffolk school district handles the exemption. Even calling the district may not always produce an immediate answer. I know, I’ve tried.
If you're researching a potential location, start with the school district's website. Search Board of Education meeting minutes, meeting agendas, resolutions and budget documents for Veterans Exemption, Alternative Veterans Exemption, RPTL 458-a, or P&T Veterans Exemption.
If you already live in the home and aren't planning to move, submit the appropriate exemption paperwork to the proper assessing authority and determine what your school district has adopted.
Now There's a New 100% P&T Exemption
New York has also enacted a new property-tax exemption for certain veterans whom the VA determines to be permanently and totally service connected.
This is different from the Alternative Veterans Exemption we've just calculated. Under the existing Alternative Veterans Exemption, this veteran's 100% VA comp rating produces an additional 50% assessed-value exemption component, subject to applicable limits. That's why 392 × 50% = 196. It does not mean the veteran currently pays zero property taxes.
The new P&T exemption potentially changes that substantially. New York has amended the provision to remove the municipal local option, making the exemption mandatory for municipalities. It first applies to assessment rolls based on taxable-status dates occurring on or after October 1, 2026. And based on the language in the bill it appears that possibly the whole bill will go to zero, but nothing has been confirmed. And again, there is no way to know how much if any will show on the school district taxes, which for many of us on long island makes up a larger share of our overall annual property tax bill.
This real 2026 Island Park tax bill does not reflect the new exemption. It was supposed to go into effect this year but I have been told that the municipalities are still “figuring out”.
What Could This Bill Eventually Look Like?
After the existing veterans exemptions, this veteran currently pays $2,293.59 in county/town taxes and $4,346.72 in school taxes, for a total of $6,640.31.
Without the existing exemptions, the approximate underlying tax burden is $9,993.76. The current exemptions already save $3,353.45.
The new P&T provision could potentially eliminate substantially more of the remaining taxable amount for a qualifying veteran.
If the applicable taxes on this property were ultimately fully exempt, the potential total benefit could approach the property's underlying tax burden of roughly $10,000 per year, or approximately $833 per month when annualized.
But that's a projection, not a promise. Rather than tell veterans today that every remaining dollar on a particular tax bill will disappear, we'll wait until we see exactly how the new exemption is applied to actual Nassau and Suffolk tax bills. When that happens, I'll update this example with the real numbers.
Don't Expect Your Mortgage Payment to Drop Immediately
There's another important issue if your property taxes are included in your mortgage payment through an escrow account.
Approval of an exemption does not necessarily mean your mortgage payment drops the following month. The exemption first has to become effective on the appropriate assessment roll, then work its way into the applicable tax year and tax bill.
If your mortgage servicer collects your property taxes through escrow, the lower tax obligation then has to be incorporated into the servicer's escrow analysis.
So there can be a delay between “My exemption was approved” and “My monthly mortgage payment went down.” If you're expecting several hundred dollars per month in potential savings, don't immediately build that lower payment into your budget. It can actually take well over a year depending on when it was filed.
What About the Other Veterans Exemptions?
New York also offers the Cold War Veterans Exemption and Eligible Funds Exemption. Those may apply to some veterans, but they're not the focus of this guide. For most veterans trying to understand the current changes, the important comparison here is between the existing Alternative Veterans Exemption and the newer 100% P&T exemption.
Where Do You Start?
For Nassau County, start with the Nassau County Department of Assessment and its Veterans' Exemption Division.
For Suffolk County, property assessments are administered through the individual towns, so contact the assessor for the town where the property is located.
For either county, investigate the applicable school district separately because school participation and exemption limits under the existing Alternative Veterans Exemption can materially change your actual savings.
This is a statewide law so start with the county you are in and their veterans’ services offices for filing guidance. Even if you’re not in New York many other states have similar exemptions available Also start with your county and state veterans offices for the correct guidance.
Also, don't assume the filing deadline. Confirm the current deadline and required documentation directly with the appropriate assessor.
The Bottom Line
Our real Island Park example gives us something much more useful than an advertised exemption percentage. It gives us the actual result.
Approximate property value: $675,000
Original assessment: 392
Service/combat exemption: 98
100% VA comp exemption: 196
Applicable general taxes: 392 → 98; savings $659.20
Charges where the exemption doesn't apply: 392 → 392; charges still paid $2,073.86
School taxes after local exemption caps: 392 → 242; savings $2,694.25
Total current veterans savings: $3,353.45 per year
Actual remaining taxes: $6,640.31 per year
Approximate taxes without the veterans exemptions: $9,993.76 per year
So in this real example, the veteran received the full 75% assessment reduction on the applicable general taxes, but the actual reduction in the entire property-tax burden was only about 34%.
That's still more than $3,350 per year in real savings. But it demonstrates why veterans shouldn't look at an exemption percentage and assume that's the percentage that will disappear from their total tax bill.
One Final Note: This Is a New York State Program
Although I used a real Nassau County, Long Island property for this example, the Alternative Veterans Exemption comes from New York State law.
So if you're a qualifying veteran elsewhere in New York, don't assume this is something available only in Nassau or Suffolk County. The program is available throughout New York, although the existing Alternative Veterans Exemption is administered locally and exemption maximums and school-district participation can vary.
Contact your local assessor and find out exactly what you're eligible for.
And if you're outside New York, check your own state's veterans property-tax programs as well. Many states have their own property-tax exemptions or reductions for qualifying veterans. The eligibility requirements and potential savings can be very different from New York, but it's absolutely worth investigating.
Don't assume you're receiving every property-tax benefit you're entitled to. Ask.
And for qualifying New York veterans, we'll be watching what happens as the new 100% P&T exemption begins appearing on actual tax rolls. When it does, I'll update you with the real numbers.
Drew Vukov, MBA
Mortgage Loan Originator | USCG Veteran | Veterans Advocate
NMLS #2463295
[email protected]
For educational purposes. Property-tax exemptions depend on individual eligibility, local adoption where applicable, assessment rules, exemption limits and current law. Confirm eligibility, filing deadlines and actual tax treatment with the appropriate assessor.
