State and Federal Veterans Benefits

Veterans throughout the United States have access to a range of benefits from the Department of Veterans Affairs (VA), such as disability compensation, education reimbursement, health care, and housing grants. In addition to these federal benefits—which are available to veterans regardless of where they live—individual states may offer additional benefits for veterans residing within their borders.

Whether you've left active duty a while ago or are a newly discharged servicemember seeking to ease the transition back into civilian life, it's important to be aware of the full scope of benefits available to you and your family. Knowing about both the federal and state programs in place to help veterans, financially or otherwise, can help ensure that your needs continue to be met long after you've separated from military service.

Federal Veterans Assistance Programs

The VA is the main source of assistance for most veterans, providing a wide variety of benefits to former servicemembers and their families. Below, you can find a brief overview of the most popular resources for veterans as well as links to additional in-depth information about eligibility for specific benefits.

Veterans Healthcare Benefits

Access to the VA healthcare system is one of the most important benefits available to veterans. Once you're in the VA system, you can see a doctor for preventative care, get coverage for prescription medications, and be treated for emergencies at a VA medical center. VA healthcare coverage also includes diagnostic tests, mental health counseling, and rehabilitation services.

While the eligibility requirements for VA healthcare means that this benefit encompasses most veterans, you'll still usually need to show that you were on active duty for a certain period of time and that you haven't been discharged with "bad paper."

Veterans Education Benefits

Civilians as well as vets have likely heard of the VA's most well-known education benefit, the GI Bill, which was established during World War II to help returning veterans pay for continuing education and job training. Through the GI Bill and related legislation—namely, the post-9/11 GI Bill—veterans and their families may be able to have the VA pay for some (or all) education-related expenses, such as tuition, fees, books, and housing.

Veterans can use these benefits to work towards a degree, enroll in trade school, learn specific industry skills, or take correspondence courses from home. (The post-9/11 GI Bill even allows vets to transfer any unused benefits to their dependent spouse or children.) When they're ready to return to work, veterans can take advantage of hiring preferences for federal positions and other job placement programs tailored to match their skills.

Veterans Housing Assistance

The VA offers many programs that can help veterans and their families secure (or refinance) a home loan with favorable lending terms, pay their mortgage, conduct home improvements, and repair homes damaged by natural disasters. Some disabled and elderly veterans may be eligible for VA nursing home care or other assisted living arrangements, as well as grants for home modifications that can accommodate their medical needs. And low-income vets who are at imminent risk of losing their homes can get help through a Supportive Services for Veteran Families provider.

Veterans Tax Benefits

Veterans still have to pay federal income taxes, but a lot of the benefits vets receive do enjoy favorable tax treatment. Disability compensation, education benefits, most life insurance payouts, and death benefits are all exempt from federal taxation. For veterans who served in a combat zone, combat-related special compensation (CRSC) payments are tax-free as well. The VA provides some helpful tax guidance for veterans so that they can maximize their savings come tax season.

State Veterans Benefits

In addition to the federal benefits provided by the VA to veterans across the country, most states offer state-specific benefits for local vets. These benefits often mirror or supplement federal benefits by providing further support in the form of state tax exemptions, tuition discounts, and scholarships for state schools. Many states also have recreational perks for veterans, such as reduced or free admission to state parks.

Veterans Benefits by State

Below, you can find a brief guide to veterans benefits for each state, along with links to the relevant state department for veterans' affairs.

Alabama: No state, county, or municipal tax on military retirement pay or survivor benefit plan benefits. No motor vehicle license or registration fees for veterans with at least a 10% disability rating. Property tax exemption (up to 160 adjacent acres) for disabled and elderly veterans. Small business credit for hiring veterans. Learn more at https://va.alabama.gov/.

Alaska: Tax credit for employers hiring veterans in some circumstances. Exemption on first $150,000 of primary residence's assessed value for veterans with a 50% or higher disability rating. Reduced fares on the Alaska Marine Highway for disabled vets. Free hunting and fishing licenses for disabled vets rated 50% or higher. Learn more at https://veterans.alaska.gov/home.

Arizona: Military retirement benefits, annuities, and pensions are fully exempt from state income tax. (Property tax exemptions vary by county.) Eligible veterans may be eligible for a commercial drivers' license (CDL) skills test waiver. Veterans who were discharged honorably and were unable to complete their high school education due to military service may receive an honorary diploma. Learn more at https://dvs.az.gov/services.

Arkansas: Retired pay and survivor benefit plan payments are free from state tax. Veterans who have specific VA-awarded disabilities (such as amputation, blindness, or a 100% service-connected disability) qualify for a full homestead and personal property tax exemption. Learn more at https://veterans.arkansas.gov/.

California: Veterans selling non-alcoholic goods (not services) from a fixed location may avoid municipal, county, and state business license fees. Two separate property tax exemptions are available, one for veterans and one for disabled veterans. Tuition waivers are available for vets attending California schools. Learn more in our article on California State Veterans Benefits.

Colorado: Veterans can deduct a percentage of their military retirement income from taxation, depending on their age. Certain disabled veterans and surviving spouses can exempt 50% of the first $200,000 of the value of their primary residence from property taxes. Learn more at https://vets.colorado.gov/.

Connecticut: Military retirement pay and survivor benefit plan payments exempt from taxation. Veterans who have at least 90 days of wartime service may claim a motor vehicle tax exemption. Honorably discharged Veterans at least 90 days of wartime service can get a $1,000 property tax exemption. Learn more at https://portal.ct.gov/dva.

Delaware: Veterans can reduce their tax obligations by deducting a certain amount of military retirement pay or a standard pension exclusion. Employers who hire veterans who have been deployed to hostile environments, such as Iraq or Afghanistan, can take a 10% wage tax credit of up to $1,500 for three years. Some veterans can get a school district property tax credit on their primary residence. Learn more at https://vets.delaware.gov/.

Florida: Veterans with a disability rating of 10% or more can deduct $5,000 from their home's assessed value. Veterans with 100% permanent disability, quadriplegia, or specific mobility impairments (and often their unmarried surviving spouses) may exempt all property taxes. Out-of-state tuition fees waived for honorably discharged veterans and their dependents currently residing in Florida and attending public schools. Learn more at https://floridavets.org/.

Georgia: Military retirement income exempt from taxation, with the exact amount determined by your age, income, or disability. Permanently disabled, blind, or amputee veterans pay no property tax on vehicles. Disabled veterans can exclude up to $109,986 of their primary residence's value, and some may get a 10-year exemption from local business occupation taxes and fees. Learn more at https://veterans.georgia.gov/.

Hawaii: Retirement pay, survivor benefit plan payments are tax-free. Totally disabled veterans or their surviving spouses may be able to get an exemption from all property taxes on their home. Learn more at https://dod.hawaii.gov/ovs/.

Idaho: Veterans 65 years of age or older (or those who are at least 62 and disabled) can deduct their retirement benefits, reduced by Social Security or Railroad Retirement amounts. These veterans can claim a grocery tax credit if they only have VA disability income. Disabled veterans may qualify for reduced property taxes up to $1,320. Learn more at https://veterans.idaho.gov/.

Illinois: Veterans who bought or modified their home with a Specially Adapted Housing Grant can reduce the taxable value of the home by up to $100,000. Mobile homes are exempt from county tax. There is a one-time $5,000 homestead reduction for returning veterans. Disabled veterans can camp free in state parks and may get a hunting and fishing license for free provided they have at least a 10% disability rating. Learn more at https://veterans.illinois.gov/.

Indiana: Retired pay and survivor benefit plan payments are tax-free, with a $5,000 deduction available. Wartime veterans with a 10% or higher disability rating can deduct $24,960 in property taxes. Veterans who are at least 62 years old or are totally disabled may be able to deduct an additional $14,000. Learn more at https://www.in.gov/dva/.

Iowa: Military retirement pay and survivor benefits not taxable as income. Veterans with at least 18 months on active duty can deduct up to $4,000 from their home's assessed value for property tax purposes. Learn more at https://dva.iowa.gov/.

Kentucky: Pre-1998 retiree pay and disability retirement pay for service injuries are not taxable. (Post-1997 retirees can exclude up to $31,110 of retired pay.) Disabled veterans or those who are at least 65 years old can get a homestead exemption for property taxes. Dependents of eligible veterans can qualify for a tuition waiver at any state-funded educational institution. Learn more at https://veterans.ky.gov/.

Louisiana: No state income tax on retirement benefits. Veterans with a 50% or greater disability rating can get a homestead exemption (The exact amount corresponds to your specific disability percentage rating, up to a full exemption for 100% disabled vets.) Learn more at https://vetaffairs.la.gov/.

Maine: No state income tax on retirement pay and survivor benefit plan payments. Totally disabled veterans receiving federal pensions or compensation get free registration on motor vehicles. Wartime veterans who are at least 62 years old or 100% disabled (or disabled while serving) can get a property tax exemption of $6,000 from their home's value. Free lifetime admission to state parks and museums. Learn more at https://www.maine.gov/veterans/.

Maryland: Up to $12,500 of military retirement or $34,300 of pension can be subtracted from taxable income. 100% disabled veterans or surviving spouses of those killed in action may exempt real estate taxes on their home and yard (local exemptions vary). Learn more at https://veterans.maryland.gov/.

Massachusetts: Military pensions not taxable as income. Veterans with at least a 10% disability rating can claim between $400 and $1,500 in property tax exemptions if they're residents occupying the property as their domicile. Surviving spouses of veterans who died in service may get a full exemption. Learn more at https://www.mass.gov/orgs/executive-office-of-veterans-services.

Michigan: No tax on survivor benefit plan payments or Dependency and Indemnity compensation. 100% disabled veterans or those with specially adapted housing aid can qualify for the Homestead Property Tax Credit. Learn more at https://www.michigan.gov/dmva.

Minnesota: No state income taxes on retirement or survivor benefit payments. Veterans can apply up to $750 in tax credits. Disabled vets, surviving spouses, or primary caregivers can exclude $150,000 or $300,000 of their home's market value from property taxes. Some veterans may be eligible for vehicle registration and sales tax exemptions. Learn more at https://mn.gov/mdva/.

Mississippi: Tax-free retirement and survivor benefit plan payments. Low-income aged or disabled veterans can avoid licensing taxes on certain businesses. Veterans with 100% service-connected disability (and surviving spouses if they haven't remarried) are exempt from all homestead property taxes. Learn more at https://www.msva.ms.gov/.

Missouri: Retirement pensions fully deductible from state income tax. Employers can claim tax credits of up to $9,600 when they hire veterans. (The exact amount is based on whether the veteran is disabled, has been unemployed for a certain length of time, or both.) Learn more at https://mvc.dps.mo.gov/service/.

Montana: Totally disabled veterans (or their un-remarried surviving spouse) can reduce their home's property tax rate by 50%-100%. Veterans can qualify for tuition waivers at the University of Montana or Montana State University. Discounted hunting and fishing licenses available for disabled veterans. Learn more at https://dma.mt.gov/mvad/.

Nebraska: Retirement benefits fully excluded from taxation. Property tax homestead exemptions available for totally disabled veterans, veterans with VA-funded homes, or surviving spouses. Hunting, fishing, and trapping permits offered at a discount. Special waterfowl hunting season for veterans. Pet adoption fees up to $350 covered for eligible vets. Learn more at https://veterans.nebraska.gov/.

Nevada: Veterans exempt from property taxes on the first $2,000 assessed value. Disabled veterans are exempt from $10,000, $15,000, or $20,000 of the assessed value, depending on their disability percentage rating. Learn more at https://veterans.nv.gov/.

New Hampshire: Blind, paraplegic, or double amputee veterans with VA-adapted homes are exempt from all property taxes. Totally disabled veterans can receive a perpetual Fish and Game License. (Those with at least an 80% disability rating can get one at a 50% discount.) Learn more at https://www.nh.gov/nhveterans/.

New Jersey: Military pensions and survivor benefits are not taxable. Honorably discharged veterans with active duty service can deduct $250 each year from property tax. CDL skill waivers may be granted for veterans with military driving experience. Learn more at https://www.nj.gov/military/veterans/.

New Mexico: Up to $30,000 of retirement pay exempt from income tax. Veterans can deduct $4,000 of taxable property value. Employers get $1,000 tax credit for each recently returned vet they hire. Small-game and fishing licenses provided to disabled vets at a reduced fee. Learn more at https://www.nm.gov/departments-and-agencies/department-of-veterans-services/.

New York: No state income tax on retirement and survivor benefit plan payments. Veterans can claim one of three property tax exemptions (Alternative, Cold War, or Eligible Funds), plus disability bonuses. Learn more at https://veterans.ny.gov/.

North Carolina: No tax on retirement and survivors benefits. No highway tax on disabled veterans with VA-adapted vehicles. $45,000 property tax exemption for 100% disabled veterans or surviving spouses. Additional $2,000 yearly mortgage tax credit available for qualified veterans, as well as down payment assistance. For more information, see our article on North Carolina state veterans benefits.

Ohio: No tax on retirement and survivors benefits. 100% disabled veterans can claim a homestead exemption for property taxes. Recreation discounts are available, including free boating registration for disabled and honored vets. Learn more at https://dvs.ohio.gov/.

Oklahoma: No tax on retirement pay. 100% disabled veterans don't have to pay sales tax provided they're on the Oklahoma Veterans Registry. 100% disabled veterans who own their residence are exempt from property taxes. Learn more at https://oklahoma.gov/veterans.html.

Oregon: No tax on disability compensation or survivors benefits. Disabled veterans and surviving spouses may be able to exempt part of their home's assessed value from property taxes. Vets with limited income can qualify for dental care under the Oregon Veteran Dental Program. Learn more at https://www.oregon.gov/ODVA/.

Pennsylvania: Retirement pay and Survivor Benefit Plan payments are tax-free. 100% disabled veterans are exempt from home property taxes if their income is below $114,637. Learn more at https://www.pa.gov/agencies/dmva.html.

Rhode Island: No tax on retirement pay. Honorably discharged veterans can claim one of seven property tax exemptions. The exact amounts vary by category and location. Learn more at https://vets.ri.gov/.

South Carolina: Retirement pay, pensions, and VA compensation are tax-free. Totally disabled veterans don't have to pay taxes on two motor vehicles. Totally disabled vets are also exempt from property tax on their primary residence and up to five acres (retroactive to 2022). Learn more at https://scdva.sc.gov/.

South Dakota: Disabled or paraplegic veterans (regardless of whether the disability is service-connected) and their surviving spouses can exempt up to $200,000 of their home, garage, and one-acre lot from property tax. Reduced fee hunting permits are available for disabled vets. Learn more at https://vetaffairs.sd.gov/.

Tennessee: Disabled veterans may be exempt from some business taxes. Certain disabled veterans and surviving spouses can claim property tax exemptions on the value of their home up to $175,000. Hunting and fishing licenses are offered at a $10 fee to 100% disabled (service-connected) veterans and those who are at least 30% due to wartime service. Learn more at https://www.tn.gov/veteran/.

Texas: No franchise tax on qualified new veteran-owned businesses for five years. Eligible veterans, spouses, and dependent children can get up to 150 hours of tuition exemption when attending state institutions of higher education. Learn more at https://tvc.texas.gov/.

Utah: Military retirement pay excluded from state income tax. Surviving spouses and children get a 4.55% tax credit on survivor benefits. Disabled veterans can exempt up to $505,548 of their home's taxable value from property tax, depending on disability rating. Learn more at https://veterans.utah.gov/.

Vermont: Up to $10,000 of retirement pay is exempt from income tax (subject to an income cap). Veterans with at least a 50% service-connected disability or Improved Pension may reduce their primary home's appraised value by $10,000-$40,000 for property taxes, subject to local regulation. Learn more at https://veterans.vermont.gov/.

Virginia: Up to $40,000 of retirement or survivor benefits is excluded from taxable income. Qualified veterans and their surviving spouses, as well as surviving spouses of active duty members killed in action, are eligible for property tax exemptions. Learn more at https://www.dvs.virginia.gov/.

Washington: Disabled veterans with VA adaptive housing grants can get a $2,500 refund on state sales or use tax. Veterans rated at 80% disability or higher for a service-connected condition may qualify for income-based property tax exemptions or deferrals. Learn more at https://www.dva.wa.gov/.

West Virginia: No income tax on retirement or survivors' benefits. Veterans with a 90-100% disability rating from the VA can get a property tax credit on their primary residence. Vets with a 100% permanent disability rating may be exempt from certain property taxes. (These veterans may also get a free hunting, fishing, or trapping license.) Learn more at https://veterans.wv.gov/.

Wisconsin: No tax on military retirement, including Survivor Benefit Plan and Retired Serviceman's Family Protection Plan payments. Veterans and surviving spouses can get a tax credit for their primary residence up to one acre. Learn more at https://dva.wi.gov/.

Wyoming: Combat veterans or surviving spouses who have been Wyoming residents for at least three years may exempt $6,000 in assessed value for property tax purposes. This exemption can apply to either their primary residence or vehicle registration tax. Learn more at https://www.wyomilitary.wyo.gov/.

Additional Resources for Veterans

The above list is by no means exhaustive. Many municipal governments and private organizations offer additional benefits or discounts specifically for veterans. Local libraries, for instance, often have programs specially aimed at addressing veterans needs. As a veteran, you may be able to get a reduced fare if you take public transportation, or discounted tickets to a nearby museum. Be creative when seeking out these opportunities—for example, your local sports teams may provide tickets at half-cost for veterans.

How Veterans Can Apply for Benefits

Filling for VA benefits is a relatively straightforward process. You'll need to complete Form 21-526EZ, Application for Disability Compensation and Related Compensation Benefits. You have several methods to choose from when submitting the application.

• Apply online using the electronic version of Form 21-526.
• Fax Form 21-526EZ to 844-531-7818 (from inside the United States) or 248-524-4260 (from outside the U.S.).
• Bring your application to your local VA office.
• Mail the form to the Department of Veterans Affairs, Claims Intake Center, PO Box 4444, Janesville, WI 53547-4444.

To learn more about the filing process—including what additional information you need to submit and how long it will take to get a decision—see our article on applying for VA disability benefits.

The process of applying for state-specific benefits will, unsurprisingly, vary from state to state. You can find the link to your state's veterans affairs department at the end of the paragraph corresponding to your state in the above list. Follow the link for instructions about how to obtain the type of benefit you're seeking.

Getting Legal Assistance

You aren't required to hire a lawyer to apply for veterans' benefits, and it's unlikely that you'll need one if you're claiming an exemption on your state property taxes or requesting a discount on a hunting permit. But if you're feeling overwhelmed by the process or you're doing something a little more complicated like requesting a disability rating upgrade, it might be a smart move to get a lawyer. You can contact the VA or a local veterans' assistance organization to determine whether you need a representative and, if so, where to find one that's a good match for you.