Oregon Property Tax Relief for Surviving Spouses: Veteran Exemptions and Senior Deferral

After the death of a spouse, property taxes are one of the expenses that people rarely think about in the first few chaotic weeks — but they are also one of the most significant ongoing costs that Oregon law can meaningfully reduce. Two state programs in particular are available to qualifying surviving spouses: the Disabled Veteran and Surviving Spouse property tax exemption, and the Senior and Disabled Property Tax Deferral program.

Neither of these benefits is automatic. Both require proactive applications filed with specific offices by specific deadlines. Missing the annual filing window means waiting another full year.

The Veteran's Surviving Spouse Property Tax Exemption

Under ORS 307.250–307.283, the surviving spouse of an honorably discharged veteran may exempt a portion of their homestead's assessed value from property taxes. This is not a one-time benefit — it continues year after year, and the exemption amount grows by 3 percent annually.

Two exemption tiers apply:

• $27,092 base exemption — Available to the surviving spouse of any honorably discharged veteran, regardless of whether the veteran was disabled or had previously claimed the exemption.

• $32,512 higher-tier exemption — Available when the veteran either died directly from a service-connected injury or illness, or had previously received the maximum exemption for at least one year before death.

Both amounts increase by 3 percent each calendar year, so the current figures are the floor, not a permanent ceiling.

Who qualifies:

You qualify for this exemption if:

• Your spouse was honorably discharged from U.S. military service
• You have not entered into a new marriage or registered domestic partnership since the veteran's death
• You are an Oregon resident
• You own and occupy the property as your primary residence
• The property is your homestead

Critically, the veteran does not need to have been disabled during their lifetime, and you do not need to have been receiving this exemption before your spouse's death. A surviving spouse of a non-disabled veteran who was never receiving the exemption can still file and qualify.

How to apply:

File Form 150-310-676 with your county assessor between January 1 and April 1 for the following tax year. The application requires:

• A copy of the veteran's DD-214 (discharge papers)
• A certified copy of the death certificate
• A copy of the marriage certificate
• Proof of Oregon residency

Applications submitted after April 1 cannot be backdated. You will need to refile the following year. Since the assessor's office processes these applications in batches, it is advisable to submit well before the April 1 deadline to allow time for any documentation issues to be resolved.

Maintaining eligibility:

You must refile periodically as the county assessor's office requires, and you must notify the assessor if you move, sell the property, remarry, or enter a domestic partnership. Any of these events ends eligibility.

The Senior and Disabled Property Tax Deferral Program

Oregon's Senior and Disabled Property Tax Deferral program takes a different approach: instead of reducing your tax bill, it allows you to defer it. The Oregon Department of Revenue pays your property taxes on your behalf, and those payments create a lien on your property that is repaid — with interest — when you sell the home or when you die.

For surviving spouses, this program has a specific provision that makes it accessible even if the deceased spouse was the only one enrolled.

2026 eligibility requirements:

• Household income must not exceed $70,000 (adjusted annually)
• The Real Market Value of the property must be at least $301,000 (adjusted annually; this is a minimum, not a cap)
• You must be at least 62 years old, or certified as disabled under Social Security standards
• You must have owned and lived in the home for at least five consecutive years — unless you are a surviving spouse inheriting from a participant (see below)

The surviving spouse exception:

If your deceased spouse was enrolled in the deferral program, you are eligible to continue the deferral without needing to have personally lived in the home for five years. The years your deceased spouse owned and lived on the property count toward your eligibility. You have two years from the date of death to obtain and record the deed to the property in your own name.

This is significant for situations where the home was held solely in the deceased spouse's name, or where the surviving spouse had not personally met the five-year ownership requirement.

What the deferral costs:

The state charges interest on deferred taxes at 6 percent annually. This accumulates as a growing lien on the property. If you choose to sell the home, the lien balance must be paid from the sale proceeds. If you pass away without having sold, the lien is repaid from your estate.

For a surviving spouse who wants to remain in their home — but whose fixed income makes annual property tax payments difficult to manage — the deferral program converts a large annual cash obligation into a deferred debt that is only settled at the time of a future transaction.

How to apply:

Contact the Oregon Department of Revenue at 503-378-4988 or download Form 150-310-068 from oregon.gov/dor. Applications must be filed by April 15 for the current tax year.

Comparing the Two Programs

These two programs are not mutually exclusive. A surviving spouse who qualifies for both — for example, the widow of a veteran who also meets the income and age thresholds — may be able to use both simultaneously, reducing the taxable assessed value through the veteran exemption while also deferring the reduced remaining balance through the deferral program.

Don't Miss the Annual Deadlines

Both programs have hard annual deadlines: April 1 for the veteran exemption, April 15 for the senior deferral. These are not extensions that get granted if you miss them — you wait a full year to apply again.

If your spouse died in the fall or winter, the window to file for next tax year's benefit may be closer than it appears. Start gathering documentation (DD-214, death certificate, deed to the property) immediately so you are ready to file before spring.

Property tax relief is one of several ways Oregon law protects surviving spouses from post-death financial pressure. The Oregon Survivor Benefits Navigator walks through every benefit program — property taxes, pension elections, health insurance, estate tax, and more — in a single step-by-step sequence designed for the first year after loss.

See more Oregon guides →