Illinois Disabled Veteran Property Tax Exemption: Surviving Spouse Guide (PTAX-342)

If your spouse was a disabled veteran and died while the property tax exemption was in place, you do not automatically lose that benefit. Illinois law allows an un-remarried surviving spouse to continue the Disabled Veterans' Standard Homestead Exemption (DVSHE) on the primary residence — and in some cases to transfer it to a new home entirely.

For veterans with a 70% or greater service-connected disability rating, this exemption is a complete 100% property tax exemption. On a Cook County home with an equalized assessed value of $250,000, that can represent thousands of dollars per year in eliminated tax liability. Missing the annual renewal deadline means the exemption lapses and the full tax bill resumes.

This guide explains the exemption tiers, what the surviving spouse must do to continue the benefit, how Form PTAX-342 works, and which related exemptions may also apply.

What Is the Illinois Disabled Veterans' Standard Homestead Exemption?

The DVSHE is authorized under 35 ILCS 200/15-169 and provides a reduction in a property's equalized assessed value (EAV) based on the veteran's VA-certified disability rating. The EAV reduction directly reduces the taxable value of the property, which in turn reduces the tax bill.

To qualify, the property's total EAV must be less than $250,000. The exemption tiers are:

The 100% exemption for veterans with a 70%+ rating is the most significant benefit in the program. On a home with an EAV of $150,000 and a local tax rate of 7%, the annual savings would be approximately $10,500. Over a decade, that is over $100,000 in property taxes that would otherwise be owed.

The veteran must have owned the property and used it as their primary residence. The property cannot be valued at an EAV exceeding $250,000 in the county's assessment.

Can the Surviving Spouse Keep the Exemption?

Yes — with two conditions:

1. The surviving spouse must not have remarried
2. The surviving spouse must continue to use the property as their primary residence, or if they move, must apply to transfer the exemption to a new primary residence

An un-remarried surviving spouse who satisfies these conditions can retain the exemption for as long as they live in the home (or a subsequent primary residence). The exemption does not expire automatically upon the veteran's death — but it does require annual renewal through Form PTAX-342.

What Is Form PTAX-342?

Form PTAX-342 is the "Application for the Standard Homestead Exemption for Veterans with Disabilities." It must be filed annually with the county supervisor of assessments (or the appropriate county office) to maintain the exemption.

The form requires:

• The disabled veteran's death certificate (certified copy)
• Proof of ownership of the property (deed or other documentation)
• VA Disability Certification Letter confirming the service-connected disability rating at or above the threshold level

The annual filing deadline varies by county — typically in the first or second quarter of the assessment year. Contact your county assessor's office for the specific deadline. In Cook County, the Assessor's Office has its own specific renewal schedule and online filing process.

Failing to file PTAX-342 by the deadline means the exemption is not applied to that tax year's assessment. You may be able to apply for a retroactive correction in some counties, but this is not guaranteed and requires additional paperwork.

How to Transfer the Exemption to a New Home

If the surviving spouse sells the home and purchases a new primary residence within Illinois, the DVSHE can be transferred to the new property. This is a significant benefit — it means the surviving spouse is not locked into staying in the original home to preserve the exemption.

To transfer the exemption to a new property, the surviving spouse must:

1. File Form PTAX-342 with the assessor in the county where the new property is located
2. Provide the required documentation: death certificate, proof of ownership of the new property, and the VA Disability Certification Letter
3. File by the county's applicable deadline for the assessment year in which the exemption should take effect

The exemption on the original property ends when the property is sold. There may be a transition period if the timing of the sale and purchase straddles an assessment year — discuss this with the county assessor's office to avoid a gap in coverage.

First Responder and Military Property Tax Abatements

Illinois also provides property tax abatements for surviving spouses of fallen police officers, firefighters, emergency medical workers, and military personnel deployed on active duty in designated conflict zones (such as Iraq or Afghanistan) who were killed in action or died as a result of injuries sustained in the line of duty.

To qualify for the abatement:

• The property must have been owned by the decedent at the time of death, or acquired by the surviving spouse within two years of the death
• The property must be used as the surviving spouse's principal residence
• The property cannot be occupied by more than two families

In Cook County, the property tax abatement for surviving spouses of fallen first responders and military personnel remains in effect for the lifetime of the qualifying surviving spouse, subject to reapplication on a schedule established by the Board of Review (typically every three years).

To apply, submit a petition to the county Board of Review (or the applicable county authority) with documentation of the death, the spouse's relationship to the decedent, and proof of primary residence.

Property tax exemptions are one of several significant financial benefits that Illinois surviving spouses often miss because no one agency proactively notifies them. The Illinois Survivor Benefits Navigator includes a checklist of all applicable exemptions, the forms required for each county, and the annual renewal deadlines — so you do not lose a benefit you are legally entitled to.

Other Illinois Property Tax Exemptions for Surviving Spouses and Seniors

Beyond the DVSHE, surviving spouses may qualify for additional property tax relief:

Homestead Exemption for Persons with Disabilities: If the surviving spouse themselves has a qualifying disability, they may be eligible for an EAV reduction on their primary residence. The standard amount is $2,000, though amounts vary by county under local homestead exemption rules.

Senior Citizen Homestead Exemption: Surviving spouses who are 65 or older qualify for the Senior Citizen Homestead Exemption, which provides an EAV reduction of $8,000 in Cook County or $5,000 in all other counties. Application is made through the county assessor, generally with proof of age.

Senior Citizen Assessment Freeze (SCAF): For seniors meeting the income threshold (household income at or below $65,000 in 2026), this program freezes the EAV at the base year value, preventing property tax increases due to rising assessments. Income and residency must be verified annually.

General Homestead Exemption: All owner-occupied primary residences in Illinois qualify for a $10,000 EAV reduction in Cook County or $6,000 in other counties. This exemption is generally applied automatically but may need to be re-applied for if the property changes ownership.

Frequently Asked Questions

Does the DVSHE apply to condominiums? Yes. Condominiums owned as a primary residence qualify, provided the EAV does not exceed $250,000.

My spouse's VA disability rating increased after death. Does the higher rating apply? No. The disability rating used for the exemption is the one in effect at the time the exemption was applied. After the veteran's death, there is no mechanism to apply for a rating change on their behalf.

What if the VA disability certification letter is outdated? The county assessor generally requires a current or recently issued VA letter. If your letter is several years old, contact the VA regional office to request a new certification documenting the final disability rating.

Can I get a retroactive refund if I missed a year of filings? Some counties allow retroactive exemption claims for up to two prior tax years if documentation of eligibility is provided. This varies by county — contact your county assessor's office directly.

What happens to the exemption if I remarry? The surviving spouse exemption ends upon remarriage. The property tax bill for the following assessment year will reflect the full taxable EAV without the DVSHE reduction.

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