People who serve in the military, who are seniors or disabled, or who are under 16 can qualify for many tax exemptions. The surviving spouse of an honorably discharged veteran who had a service-connected disability of.Receives the exemption on the newly acquired property in the next tax year. Surviving Spouse of a Totally and. Disability benefits received from VA, such as disability compensation, pension payments and grants for home modifications, are not taxable. This exemption will apply to the 2025 tax bill. Don't include disability benefits you received from the VA in your gross income.