Most U.S. states and territories provide tax benefits for Veterans, their families and survivors. Whether you’re a Veteran checking options in your area, a family member or survivor seeking clarity, or a transitioning service member planning your next move, this guide simplifies the process. We’ve organized these benefits alphabetically by state and territory for quick reference.
The information listed is based on available publications from state Departments of Veterans Affairs (DVA) to raise awareness of the many benefits offered to Veterans. As some details may be outdated at the time of publication, we encourage readers to verify information by visiting their state or territory’s DVA website, linked for your convenience.
Alabama
- Income: Military retirement pay, active combat pay, and Survivor Benefit Plan payments face no state, county or municipal income tax.
- Motor vehicle: Disabled Veterans with a VA-provided vehicle pay no license fees or property taxes. Veterans with a 10% or higher disability rating avoid license tax and registration fees.
- Other/Business: Small businesses (50 or fewer employees) earn a $1,000 income tax credit per newly hired, unemployed Alabama Veteran—doubled to $2,000 for recently discharged Veterans starting their own businesses.
- Property: Permanently and totally disabled Veterans, or those 65 and older, enjoy a property tax exemption on their home and up to 160 adjacent acres, with no income cap. Homes acquired through a VA specially adapted housing grant are tax-exempt for the Veteran or surviving spouse.
Learn more about Alabama Veterans benefits online.
Alaska
- Income: No state income tax. Legal residents qualify for the Permanent Fund Dividend.
- Other/Business: Employers hiring Veterans may claim a tax credit under certain conditions.
- Property: Disabled Veterans with a 50% or higher service-connected disability rating get a tax exemption on the first $150,000 of their primary residence’s assessed value. This transfers to a spouse aged 60 or older if the Veteran passes away.
Learn more about Alaska Veterans benefits online.
American Samoa
Income: Residents pay taxes to the American Samoa Tax Office, not the IRS, effectively mirroring a no-income-tax state rate. Military pay and retired pay are taxable, but disability retirement pay for service-related injuries is not. Survivor Benefit Plan, Reserve Component Survivor Benefit Plan, and Retired Serviceman’s Family Protection Plan annuities are taxable.
Learn more about Veteran benefits in American Samoa.
Arizona
- Income: Military retirement benefits, annuities and pensions are fully exempt from income tax. Nonresident military spouses may avoid Arizona income tax under specific conditions.
- Motor Vehicle: Veterans may enjoy vehicle license tax exemptions, special plates and CDL-skills test waivers through the Arizona Department of Transportation if they meet eligible conditions.
- Property: Property tax exemptions vary by county.
Learn more about Veteran benefits in Arizona.
Arkansas
- Income: Active duty pay, retired pay and Survivor Benefit Plan payments are tax-free.
- Property: Veterans with specific VA-awarded disabilities (e.g., loss of limbs, total blindness, or 100% service-connected disability) qualify for a full homestead and personal property tax exemption. Un-remarried surviving spouses and dependent children may also benefit if the Veteran died in service or from service-connected causes.
Learn more about Veteran benefits in Arkansas.
California
- Income: Active duty residents stationed outside California pay no state income tax. Military pay is taxable if stationed in-state.
- Other/Business: Honorably discharged Veterans selling goods from a fixed location may avoid municipal, county, and state business license fees (excludes alcohol sales).
- Property: California has two separate property tax exemptions: one for Veterans and one for disabled Veterans. Please consult your local assessor’s office for detailed requirements regarding these exemptions.
Learn more about Veteran benefits in California.
Colorado
- Income: Active duty pay is tax-free if stationed outside the continental U.S. for at least 305 days. Military retirees deduct up to $15,000 (under 55), $20,000 (55-64), or $24,000 (65+) from retirement income, including Survivor Benefit Plan payments.
- Property: Qualifying disabled Veterans, surviving spouses and Gold Star spouses are exempt from 50% of the first $200,000 of their primary residence’s value, with the state covering lost county revenue.
Learn more about Veteran benefits in Colorado.
Commonwealth of the Northern Mariana Islands
- Income: Residents pay taxes to the CNMI Tax Office, not the IRS, aligning with a no-income-tax state rate. Military pay and retired pay are taxable, but disability retirement pay for service-related injuries is not. Survivor Benefit Plan, Reserve Component Survivor Benefit Plan, and Retired Serviceman’s Family Protection Plan annuities are taxable
Learn more about Veteran benefits in the Northern Mariana Islands.
Connecticut
- Income: Active duty pay is tax-free if stationed out-of-state, provided you don’t own a Connecticut home or stay more than 30 days yearly. Military retirement pay and Survivor Benefit Plan payments are tax-free.
- Motor Vehicle: Veterans with 90-plus days of wartime service may claim a motor vehicle tax exemption. Non-residents garaged in Connecticut due to military orders may qualify under federal law. Leased vehicle tax refunds are available.
- Property: Honorably discharged Veterans with 90-plus days of wartime service get a $1,000 property tax exemption, with additional relief for disabled Veterans meeting income limits.
Learn more about Veteran benefits in Connecticut.
Delaware
- Income: Retired service members deduct up to $12,500 of military retirement pay from income tax until age 60, then switch to the standard pension exclusion.
- Other/Business: Employers hiring Veterans deployed to hostile environments (e.g., Iraq, Afghanistan) earn a 10% wage tax credit, up to $1,500, for three years.
- Property: Qualified Veterans claim a full non-vocational school district property tax credit on their primary residence.
Learn more about Veteran benefits in Delaware.
District of Columbia
- Income: Military retired pay is fully taxable. Disability retirement pay for service-related injuries is not. Military pay is taxable for residents. Survivor Benefit Plan, Reserve Component Survivor Benefit Plan, and Retired Serviceman’s Family Protection Plan annuities are tax-free for survivors 62+. Social Security benefits are exempt.
- Property: Veterans with a 100% service-connected disability or paid at that rate due to unemployability qualify for a $445,000 reduction in assessed home value, subject to ownership, residency and income limits ($159,750 for 2025).
Learn more about Veteran benefits in the District of Columbia.
Florida
- Income: No state income tax.
- Property: Veterans with a 10% or more VA disability deduct $5,000 from their home’s assessed value. Those with 100% permanent disability, quadriplegia or specific mobility impairments may exempt all property taxes, as may un-remarried surviving spouses meeting criteria.
Learn more about Veteran benefits in Florida.
Georgia
- Income: Military retirement income is exempt up to $17,500 for disabled Veterans under 62, with an extra $17,500 for earned income; $35,000 for ages 62-64; and $65,000 for 65+. Combat zone deaths erase income taxes for that year and prior combat-zone years.
- Motor Vehicle: Permanently disabled Veterans or those with vision/limb loss pay no property tax on vehicles. A VA grant for vehicle purchase/adaptation waives state sales tax.
- Other/Business: Veterans with a 10% or more service-connected disability and honorable discharge get a 10-year exemption from local occupation taxes and fees.
- Property: Disabled Veterans exempt up to $109,986 of their primary residence’s value, per a VA-set index, extending to un-remarried surviving spouses or minor children.
Learn more about Veteran benefits in Georgia.
Guam
- Property: Eligible disabled Veterans, surviving spouses, Gold Star parents or legal guardians may exempt all property taxes on their residence.
Learn more about Veteran benefits in Guam.
Hawaii
- Income: Retired pay, Survivor Benefit Plan payments and National Guard/Reserve drill pay (up to an E-5’s 48 drills and 15 training days) are tax-free.
- Motor Vehicle: Totally disabled Veterans with VA-subsidized cars avoid taxes. Active duty non-residents stationed in Hawaii skip motor vehicle weight taxes on one vehicle.
- Property: Totally disabled Veterans or their surviving spouses may qualify for an exemption from all property taxes on their home.
Learn more about Veteran benefits in Hawaii.
Idaho
- Income: Active duty pay is tax-free if stationed outside Idaho. Veterans or un-remarried widows 65+ (or 62+ and disabled) deduct retirement benefits, reduced by Social Security or Railroad Retirement amounts.
- Other/Groceries: Veterans 65+ (or 62+ and disabled) with only VA disability income claim a grocery tax credit.
- Property: Veterans with a 10% or more service-connected disability or VA pension qualify for a property tax reduction if they meet income and residency rules. Those with 100% disability may reduce taxes by up to $1,320.
Learn more about Veteran benefits in Idaho.
Illinois
- Income: Active duty, Guard, Reserve, retired pay and Survivor Benefit Plan payments are tax-free.
- Property: Homes bought or modified with a VA Specially Adapted Housing Grant reduce taxable value by up to $100,000; mobile homes are exempt from county tax. Returning Veterans get a one-time $5,000 homestead reduction. Disabled Veterans deduct $2,500 (30-50% disability), $5,000 (50-70%), or all taxes (70% or more), with un-remarried surviving spouses of those killed in action also exempt—file annually with the county.
Learn more about Veteran benefits in Illinois.
Indiana
- Income: Active duty and Reserve pay is tax-free starting in 2024. Retired pay and Survivor Benefit Plan payments are tax-free with a $5,000 deduction available.
- Property: Wartime Veterans with 10% or more VA disability deduct $24,960; those 62+ or totally disabled with a home under $200,000 deduct $14,000—or both ($38,960 total) if meeting all criteria.
Learn more about Veteran benefits in Indiana.
Iowa
- Income: Federal military retirement pay and survivor benefits are tax-free.
- Property: Veterans with 18+ months of active duty deduct up to $4,000 from their home’s assessed value.
Learn more about Veteran benefits in Iowa.
Kansas
- Income: Military retirement pay is tax-free. Starting in 2023, 100% service-connected disabled Veterans claim a $2,250 personal exemption.
- Other/Sales Tax: From July 1, 2026, 100% service-connected disabled Veterans avoid sales tax on up to $24,000 in annual purchases (excludes tobacco, alcohol, vehicles).
- Property: Veterans with 50% or more permanent service-connected disability claim a homestead refund—must be honorably discharged Kansas residents.
Learn more about Veteran benefits in Kansas.
Kentucky
- Income: All military pay, pre-1998 retiree pay, and disability retirement pay for service injuries are tax-free. Post-1997 retirees exclude up to $31,110 of retired pay.
- Property: Homeowners 65+ or totally disabled qualify for a homestead exemption.
Learn more about Veteran benefits in Kentucky.
Louisiana
- Income: Federally exempt military pay (e.g., combat pay) and retirement benefits are tax-free. Service members stationed outside Louisiana for 120+ consecutive days deduct up to $50,000 of military compensation.
- Property: Veterans with 50% or more service-connected disability add exemptions to the homestead: $2,500 (50-69%), $4,500 (70-99%), or full exemption (100%, except some municipal taxes).
Learn more about Veteran benefits in Louisiana.
Maine
- Income: Out-of-state military pay, retirement pay and Survivor Benefit Plan payments are tax-free.
- Motor Vehicle: Totally disabled Veterans receiving federal pensions or compensation get free registration. Excise tax exemptions apply if eligible, even without disabled plates—contact the Maine Bureau of Veterans’ Services.
- Property: Wartime Veterans 62+ or 100% disabled (or disabled while serving) are exempt from paying $6,000 from their home’s value. Paraplegic Veterans with a federal housing grant exemption of $50,000.
Learn more about Veteran benefits in Maine.
Maryland
- Income: Military retirees subtract up to $12,500 of retirement income (or $20,000 if 55+). Those 65+, totally disabled, or with a totally disabled spouse exclude up to $34,300 of pension income.
- Motor Vehicle: Active duty members or their family claim an excise tax credit with proof of status, within limits.
- Other/Vessel: For one year, active duty members in Maryland avoid the 5% vessel excise tax on out-of-state-registered boats.
- Property: Veterans with 100% permanent service-connected disability or surviving spouses of those killed in action may exempt real property taxes on their home and yard—local exemptions vary.
Learn more about Veteran benefits in Maryland.
Massachusetts
- Income: U.S. military pensions are tax-free. Nonresident service members pay no tax on military compensation; residents do. Combat zone pay is excluded. Guard/Reserve members traveling 100+ miles deduct unreimbursed overnight expenses.
- Motor Vehicle: Disabled Veterans with a 100% VA disability rating or unemployability status (per the HERO Act) skip excise and sales tax on one non-commercial vehicle with DV plates. Purple Heart recipients with 60% or more disability also avoid sales tax with qualifying plates.
- Property: Disabled Veterans (10% or more) claim $400-$1,500 exemptions if Massachusetts residents occupy the property as their domicile. Surviving spouses of service-related deaths may get a full exemption.
Learn more about Veteran benefits in Massachusetts.
Michigan
- Income: Active duty pay, Survivor Benefit Plan, and Dependency and Indemnity Compensation payments are tax-free. Military retirement benefits paid to retirees of the armed forces of the United States for services performed while a member are exempt from Michigan individual income tax.
- Property: The Homestead Property Tax Credit boosts relief for some Veterans—file by April. Disabled Veterans with 100% VA disability, specially adapted housing aid, or unemployability rating (or their un-remarried surviving spouse) exempt their homestead starting 2025 without reapplication.
Learn more about Veteran benefits in Michigan.
Minnesota
- Income: Military pay, retirement pay, and Survivor Benefit Plan payments are tax-free. Credits apply for combat zone service (post-2014) or past military service (up to $750).
- Property: Veterans with disabilities, surviving spouses or primary caregivers exclude $150,000 or $300,000 of their home’s market value, based on status.
- Motor Vehicle: Qualifying Veterans and active-duty service members may be eligible for vehicle registration and sales tax exemptions.
Learn more about Veteran benefits in Minnesota.
Mississippi
- Income: Military retired pay and Survivor Benefit Plan payments are tax-free.
- Privilege Tax: Veterans 65+, blind, deaf, mute or 50% or more disabled with income under $900 avoid privilege taxes on certain businesses.
- Property: Honorably discharged Veterans with total service-connected disability (or their un-remarried surviving spouse) are exempt from all homestead property taxes.
Learn more about Veteran benefits in Mississippi.
Missouri
- Income: Active duty and National Guard/Reserve income (as of 2024) is tax-free. Military retirement pensions are fully deductible.
- Motor Vehicle: Equipment to modify vehicles for disability use is sales tax-exempt.
- Other/Business: For-profit employers claim Work Opportunity Tax Credits: up to $4,800 for disabled Veterans, $9,600 for long-unemployed disabled Veterans, or $5,600 for other unemployed Veterans, based on hours worked.
- Property: Former POWs with total service-connected disability exempt all homestead taxes. Out-of-state military waive property tax receipt verification with a non-Missouri Leave and Earnings Statement. Disabled Veterans or seniors claim a credit up to $1,100 (owners) or $750 (renters), excluding VA benefits from income calculations.
Learn more about Veteran benefits in Missouri.
Montana
- Income: Active duty and Reserve/Guard pay is tax-free. Starting 2024, residents who work in Montana may deduct 50% of retirement or survivor pay for five years. Retirees generally exclude up to $5,060 if their income is below $42,140; those 65+ subtract $5,500.
- Property: Veterans with 100% service-connected disability (or their un-remarried surviving spouse) reduce their home’s tax rate by 50%-100%, based on income and marital status.
Learn more about Veteran benefits in Montana.
Nebraska
- Income: Starting in 2022, military retirement benefits are fully excluded from taxable income. Active duty pay is taxed only by the service member’s legal residence state, per federal law.
- Property: Totally disabled Veterans from service-connected causes, those with VA-funded homes, or their surviving spouses qualify for a homestead exemption.
Learn more about Veteran benefits in Nebraska.
Nevada
- Income: No state income tax.
- Motor Vehicle: Wartime Veterans with 90+ days of active duty or those with 60% or more permanent disability claim exemptions, transferable to property taxes or vehicle registration fees. Surviving spouses may qualify
- Other/Sales Tax: National Guard members and families enjoy a three-day sales tax break during Nevada Day.
- Property: Veterans are exempt from the first $2,000 assessed value (adjusted annually). Disabled Veterans are exempt from $10,000 (60-79%), $15,000 (80-99%), or $20,000 (100%) of assessed value, also adjusted yearly.
Learn more about Veteran benefits in Nevada.
New Hampshire
- Income: No income tax.
- Property: Veterans’ organizations’ property is tax-exempt. Wartime Veterans, spouses or widows claim a $51 credit (up to $750 locally). All Veterans with 90+ days of service may get an additional local credit. Widows of those killed in action claim $700-$4,000. Totally disabled Veterans (blind, paraplegic or double amputees) with VA-adapted homes are exempt from all taxes, as are surviving spouses.
Learn more about Veteran benefits in New Hampshire.
New Jersey
- Income: Military pay is taxable for residents; mustering-out payments, allowances, pensions, survivor benefits and combat pay are not. Federal civil service pensions are taxable.
- Property: Honorably discharged Veterans with active duty service (or their surviving spouse/partner) deduct $250 annually—Reservists and Guard must be called to active duty.
Learn more about Veteran benefits in New Jersey.
New Mexico
- Income: Active duty pay is tax-free; up to $30,000 of military retirement pay is exempt.
- Motor Vehicle: Veterans with specific service-connected limb loss exempt the excise tax. Those with partial property tax exemptions pay two-thirds of vehicle registration fees.
- Other/Business: Employers hiring recently returned Veterans claim a $1,000 tax credit per hire.
- Property: Veterans with 100% permanent service-connected disability (or their spouse) are exempt from their primary residence. All Veterans or surviving spouses deduct $4,000 of taxable property value—certain discharge characterizations may not qualify.
Learn more about Veteran benefits in New Mexico.
New York
- Income: Retired pay and Survivor Benefit Plan payments are tax-free. Active duty income is tax-free for New York residents if stationed elsewhere, maintaining an out-of-state home, and spending under 30 days in New York yearly.
- Property: Veterans claim one of three exemptions—Alternative (wartime/expeditionary), Cold War, or Eligible Funds (pension/bonus/insurance-funded property)—plus disability bonuses. Surviving spouses may qualify—file before local tax deadlines.
Learn more about Veteran benefits in New York.
North Carolina
- Income: Military retirement and Survivor Benefit Plan payments are tax-free.
- Motor Vehicle: Disabled Veterans with VA-adapted vehicles skip the highway tax.
- Property: Veterans with 100% permanent, service-connected disability (or their surviving spouse receiving Dependency and Indemnity Compensation) are exempt from the first $45,000 of assessed home value. Qualified Veterans also claim a $2,000 annual mortgage tax credit, combinable with down payment aid.
Learn more about Veteran benefits in North Carolina.
North Dakota
- Income: Active duty, reservist, retired pay and Survivor Benefit Plan payments are tax-free for residents.
- Motor Vehicle: Veterans with 100% service-connected disability (or un-remarried surviving spouses with Dependency and Indemnity Compensation) are exempt from two vehicles.
- Property: Honorably discharged Veterans with 50% or more VA disability deduct property taxes based on disability percentage—surviving spouses qualify, too.
Learn more about Veteran benefits in North Dakota.
Ohio
- Income: Active duty pay is tax-free if stationed out-of-state; retirement pay and Survivor Benefit Plan payments are tax-free.
- Property: Veterans with 100% service-connected disability (or surviving spouses in the same home) claim a homestead exemption, rates vary by location.
Learn more about Veteran benefits in Ohio.
Oklahoma
- Income: All military pay and retirement pay is tax-free.
- Other/Sales Tax: Veterans with 100% permanent VA disability, registered in the Oklahoma Veterans Registry, avoid state sales tax.
- Property: Veterans with 100% disability owning their residence are exempt from all property taxes.
Learn more about Veteran benefits in Oklahoma.
Oregon
- Income: Active duty pay is tax-free outside Oregon, with up to $6,000 exempt in-state. Pre-1991 service retirees deduct part of their retirement pay; post-1991 pay is taxed normally. Survivor Benefit Plan follows the same rule. Disability compensation is tax-free.
- Property: If you’re a disabled Veteran or the surviving spouse or registered domestic partner of a Veteran, you may be entitled to exempt a portion of your homestead property’s assessed value from property taxes. Members of the Oregon National Guard or Reserve who are deployed may be entitled to exempt a portion of the assessed value of their primary residence from property taxes. Property tax exemptions also apply to qualifying surviving spouses of Veterans.
Learn more about Veteran benefits in Oregon.
Pennsylvania
- Income: Out-of-state active duty pay, military retirement pay and Survivor Benefit Plan payments are tax-free.
- Honorably discharged Veterans with 100% VA wartime disability exempt home property taxes if income is below $114,637 (2025 limit)—surviving spouses may qualify.
Learn more about Veteran benefits in Pennsylvania.
Puerto Rico
- Income: Veterans can claim a $1,500 exemption ($3,000 if both spouses are Veterans). Military pay is taxable in Puerto Rico; out-of-Puerto Rico pay faces federal tax. As of August 2024, military retired pay is exempt from territorial taxes (implementation pending). Retirees and survivors deduct $11,000 (under 60) or $15,000 (60+) from U.S. government pensions/annuities.
- Property: Veterans are exempt from $5,000 of their primary residence’s appraised value (up to 1,000 square meters urban or 1 cuerda rural) based on specific criteria.
Learn more about Veteran benefits in Puerto Rico.
Rhode Island
- Income: Military retirement pay is tax-free.
- Property: Honorably discharged Veterans claim one of seven exemptions (e.g., regular, total disability, specially adapted housing)—amounts vary by category and location.
Learn more about Veteran benefits in Rhode Island.
South Carolina
- Income: Military retirement pay, federally exempt VA pensions/compensation, combat pay, Reserve/Guard inactive duty pay, and nonresident active duty pay are tax-free.
- Motor Vehicle: Totally disabled Veterans or their surviving spouses are exempt from property tax on two vehicles; trust-owned or spouse-titled vehicles may qualify with conditions.
- Property: Totally disabled Veterans (or surviving spouses) are exempt from paying property tax on their primary residence and up to 5 acres retroactive to 2022. Veterans with specific mobility/brain injuries are exempt from all residence taxes.
Learn more about Veteran benefits in South Carolina.
South Dakota
- Income: No state income tax.
- Other/Sales Tax: Seniors (65+ by January 1, 2025) or disabled individuals (per Social Security Act) with low income claim a yearly sales tax refund—checks start in September.
- Property: Permanently disabled or paraplegic Veterans (service- or non-service-connected) and surviving spouses are exempt all or up to $200,000 of their home, garage and one-acre lot.
Learn more about Veteran benefits in South Dakota.
Tennessee
- Income: No income tax.
- Motor Vehicle: Sales tax exemptions apply to military members’ vehicle purchases and adaptive equipment. Disabled Veterans with 100% disability or POWs avoid the privilege tax.
- Other/Business: Disabled Veterans may avoid business taxes on certain activities listed in the Tennessee business tax law.
- Other/Professional: Active military members with 181+ days of service skip the professional privilege tax (e.g., attorneys, lobbyists).
- Property: Certain 100% disabled Veterans and surviving spouses can claim property tax relief on part of their home’s value.
Learn more about Veteran benefits in Tennessee.
Texas
- Income: No state income tax.
- Other/Business: Qualified new Veteran-owned businesses skip franchise tax for five years.
- Property: Disabled Veterans and surviving spouses may claim partial or total exemptions on appraised property values.
Learn more about Veteran benefits in Texas.
U.S. Virgin Islands
- Income: Residents pay taxes to the USVI Bureau of Internal Revenue, not the IRS, at federal rates—effectively no state income tax. Military pay, retired pay and survivor annuities are taxable; disability retirement pay for service injuries is not.
- Property: Veterans can claim a $650 homestead tax credit or a full exemption if disabled; details may vary.
Learn more about Veteran benefits in USVI.
Utah
- Income: Military retirees exclude retirement pay from state taxes. Surviving spouses/children claim a 4.55% credit on survivor benefits.
- Other/Business: Employers hiring qualified Veterans may earn a tax credit, combinable with federal credits.
- Property: Veterans with 10% or more disability (or their surviving spouse/orphans) abate up to $505,548 of their home’s taxable value, scaled by disability. Active/Reserve members deployed out of state for 200+ days exempt their primary residence’s full value.
Learn more about Veteran benefits in Utah.
Vermont
- Income: Military retirement pay is exempt up to $10,000, capped at $50,000 (single) or $65,000 (joint) gross income. It is subject to choosing between this or a Social Security exemption at eligibility age.
- Property: Veterans with at least a 50% service-connected disability or Improved Pension (and some surviving spouses) may reduce their primary home’s appraised value by $10,000-$40,000, depending on town rules.
Learn more about Veteran benefits in Vermont.
Virginia
- Income: Military retirees can subtract up to $30,000 (2024) or $40,000 (2025+) of retirement or survivor benefits from taxable income.
- Motor Vehicle: Certain qualified disabled Veterans or spouses are exempt from local taxes on one owned vehicle, not leased.
- Property: Virginia provides tax exemptions for 1.) Certain Veterans and their surviving spouses, and 2.) The surviving spouses of soldiers killed in action.
Learn more about Veteran benefits in Virginia.
Washington
- Income: No state income tax.
- Motor Vehicle: Sales tax exemptions apply to VA-reimbursed automotive adaptive equipment.
- Other/Sales Tax: Disabled Veterans with VA adaptive housing grants claim a $2,500 refund on state sales/use tax for project costs.
- Property: Seniors, disabled retirees and Veterans with 80% or more service-connected disability (or their widows) may qualify for income-based exemptions or deferrals.
Learn more about Veteran benefits in Washington.
West Virginia
- Income: Retired pay and Survivor Benefit Plan payments are tax-free. Military pay is exempt if in-state for less than 30 days.
- Property: Starting 2024, Veterans with 90-100% VA disability claim a real property tax credit on their primary residence; taxes must be paid on time.
- Those with a 100% permanent disability rating may be exempt from certain taxes.
Learn more about Veteran benefits in West Virginia.
Wisconsin
- Income: U.S. military retirement payments (including Survivor Benefit Plan and Retired Serviceman’s Family Protection Plan) and federally exempt military pay are tax-free.
- Property: Veterans and un-remarried surviving spouses can claim a refundable tax credit for their primary residence up to one acre.
Learn more about Veteran benefits in Wisconsin.
Wyoming
- Income: No state income tax.
- Motor Vehicle/Property: Combat Veterans or surviving spouses (Wyoming residents for 3+ years) may exempt $6,000 in assessed value, applicable to either their primary residence or vehicle registration tax; surviving spouse benefits end upon remarriage.
Learn more about Veteran benefits in Wyoming.
If you have federal tax questions and are looking for resources, please visit the IRS page on Veterans tax information and services, or check out this recent Vet Resources blog post on tax season guidance for Veterans.
Remember, Veterans have the flexibility to sign up for VA health care or apply for disability compensation or increased disability compensation from the comfort of home, at a time that suits them best.
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As with anything you read anymore, trust but verify. Due diligence and your own homework will take you further than believing anything on the internet.
60% + disabled Vets in Washinton can opt out of the long term care tax. Unfortunately, I’m just below the threshold at 50%.
Subject: Concerns Regarding Accuracy and Timeliness of VA Veteran Tax Exemption Information
To the Department of Veterans Affairs,
I am writing to express significant concern and frustration regarding the accuracy and timeliness of the information provided in the VA News article titled “Unlocking Veteran tax exemptions across states and U.S. territories,” published on April 22, 2025. While the stated purpose of the article is to provide a helpful roadmap to tax benefits for Veterans, their families, and survivors, the comments section reveals a concerning number of inaccuracies and issues that render the information potentially misleading and unhelpful for the very audience it intends to serve.
The overall sentiment among commenters reflects deep frustration with the apparent lack of due diligence in verifying the information presented. Several individuals point out that laws have changed or that the details provided for specific states are incorrect or confusing. Furthermore, the article was published on April 22nd, notably *after* the typical April 15th federal tax deadline, limiting its utility for those needing the information for current filing purposes. This timing issue is described as “Typical VA!” and “Pathetic!!!”.
Specific examples of purported inaccuracies highlighted in the comments include:
* A disabled Veteran in Arizona being charged for a handicap Veteran plate, contrary to the article’s implication.
* Limitations on the Montana military retiree deduction based on employment and residency not being fully detailed.
* Incorrect information for South Carolina property tax exemption for totally disabled Veterans, stating it applies to 2 vehicles, not just 1 as implied by the article.
* Missing information about Minnesota vehicle tab and tax rebates for disabled Veterans.
* Discrepancies or lack of clarity regarding Florida property tax exemptions for combat-related disabilities and the differing stances between the state and county.
* Incorrectly stating Tennessee taxes interest and dividends, which were repealed effective January 1, 2021.
* Stating an incorrect amount for the Ohio property tax exemption for 100% P&T Veterans in Lake County.
* Outdated information regarding New Hampshire’s elimination of the interest and dividends tax and the variability of local property tax credits.
* Confusing and potentially erroneous details about the California property tax exemption, particularly the seemingly unrealistic property value limits mentioned ($5,000/$10,000).
* Significant inaccuracies in the Oregon details, specifically the disability rating required for property tax valuation exemption (40%+ stated vs. 10%+ in the article) and details about property tax deferral.
* Outdated information on Indiana property tax for disabled Veterans, citing a recent law change that removed it.
* An incorrect statement that Michigan exempts retired military pay from state taxes, which a retired veteran commenter states is not accurate.
* Inaccurate details about Massachusetts tax breaks for disabled Veterans on motor vehicle sales and excise tax, specifically the criteria regarding disability rating, limb loss, and blindness.
The commenters repeatedly emphasize that “Laws change” and that publishing outdated or inaccurate information without taking the time to verify it is a “dis-service”. This demonstrates a perception that the VA is failing its “end users” – the Veterans who rely on accurate and timely information regarding their earned benefits.
Drawing on the sentiment expressed in these comments, it is clear that many feel frustrated by a perceived lack of diligence within the organization when providing critical information. This situation highlights the need for robust oversight and adjustments within government organizations when they are failing to meet the basic needs of their end users, particularly those who have served our country. Entities focused on improving government efficiency and operations, such as the Department of Government Efficiency (DOGE), whose stated goals include identifying wasteful contracts, improving VA operations, strengthening IT management, and improving VA performance and efficiency, could potentially play a valuable role in addressing the systemic issues that lead to the publication of inaccurate and untimely information. The frustration voiced by Veterans in the comments section underscores the critical importance of the VA ensuring that the information it provides is consistently accurate, current, and accessible.
Veterans deserve reliable resources from the department dedicated to serving them. Providing inaccurate or outdated information regarding crucial benefits like tax exemptions not only causes confusion but also erodes trust.
Sincerely,
Sean F
Wow. Maybe DOGE can show the Veteran Experience Office how to update old articles with current information.
Typical VA! As u can see from the comments, this article has inaccurate information AND its published April 22. Tax Due dates may vary by state but majority of the country file their state tax the same time as federal taxes. Federal taxes are due April 17th +- if it falls on the weekend. Heaven forbid the VA gives information in time for diligent people to actually use. Pathetic!!!
Incorrect information for Arizona. I am a disabled Veteran, I am being charged for having a handicap Veteran plate on my vehicle.
Laws change and if you are not going to take the time to update an old article that is based on laws, it’s best to just leave the article out.
Please learn from these comments.
“Property: Honorably discharged Veterans can claim a $4,000 property tax exemption unless the property value exceeds $5,000 ($10,000 for married couples).”
This seems designed for veterans living in compact quarters like a shoebox, a doghouse, or perhaps the deluxe suites of middle-class homeless encampments.
Regarding Montana: The military retiree deduction of 50% of retirement pay for five years only applies to retirees who are currently employed in Montana, and the deduction is the lesser of current Montana salary or 50% of military retired pay. Deduction also depends on factors related to date of Montana residency and date of retirement. Recommend researching the Montana law for full details.
South Carolina Totally disabled Veterans or their surviving spouses are exempt from property tax on 2 vehicles, not 1
Minnesota now has vehicle tab and tax rebates for disabled veterans.
In Florida even though it says complete and total disability. When it comes to combat related area, such as Vietnam, the veteran even at fifty percent disability will have fifty percent off property taxes
I have ninety and I fought tooth and nail to get my buddy his. The State of Florida says yes and the county says no. You need to get a letter from the State. They have the Trump card
Tennessee—interest and dividends are NOT taxed.
“The Hall Income tax was repealed for tax periods that begin on January 1, 2021, or later.”
https://www.tn.gov/content/tn/revenue/taxes/hall-income-tax.html
The info for Ohio is incorrect. My husband is 100% P&T and we live in Lake County. Our exemption reduces property tax by $52,500. I don’t know what the reduction is in other counties, but at least for Lake County, it is $52,500.
New Hampshire eliminated its interest and dividends tax this year. Individual cities and towns are allowed to offer up to $750 in property tax credit to veterans under NH state law. Each town votes on whether to offer the credit and on the amount of the credit if offered.
The California property tax exemption description is at best confusing and it may contain errors. The Veteran exemption reduces the accessed value of the property which will slightly reduce the property tax. The property tax will be reduced by about $40 (the actual deduction depends on the property tax rate). ChatGPT didn’t find any reference to the $5000 property value limit. In addition, the CA home owner’s exemption of $7000 is usually more advantageous.
Note: The details listed for Oregon are quite inaccurate, perhaps all othets ought to be verified individually.
Property tax valuation exemption applies to 40+% rating, not 10+%. Proprrty tax deferral applies to SCDisbled veterans also receiving SSI benefits. Such misleading info and time-wasting is a dis-service.
You need to update Indiana property tax for disabled Veterans. They just passed a new law taking it away.
Research the new law.
Why would you send this out on April 22nd when the tax deadline is April 15th. This information is informative, but delivered too LATE.
It’s 40% disability to qualify for property tax exemption in Oregon, not 10%.
Yep, it is.
There are a lot of inaccuracies in this article, it seems. They should have done a little more research.
This is completely inaccurate information, regarding Property Tax Exemption in California! You state that Veterans get a $4000 exemption, if the property VALUE DOES NOT EXCEED $5,000 ($10,000 IF MARRIED) ????!!! What home costs LESS than $5000 anywhere in the United States???!!! Absolutely ridiculous and FALSE!!!
To whom it may concern:
Your statement that the State of Michigan exempts retired military pay from state taxes is inaccurate. As a retired military veteran i can testify that Michigan has been taxing military pay since former Govenor Rick Snyder signed legislation to remove the state tax exemption. Your article is misleading.
Tennessee has not had an income tax on any income since 2020.
Your Massachusetts tax breaks are inaccurate. To receive a tax break for DAV’s on MV sales and excise tax, the veteran must be 100% rated, missing at least one limb and be blind in one eyes. Missing a limb alone doesn’t count.
Welcome to Massachusetts.
Really helpful post—I didn’t realize how much these exemptions can vary by state. This definitely clears up a lot of confusion. Appreciate the effort in putting it all in one place!