State Veteran Benefits: Taxes, Property and More

What it is

Every state has its own veteran benefits on top of what VA offers. They change often and they vary a lot. A move across a state line can raise or lower your yearly costs by thousands of dollars. That is why this is one of the first things to check when you PCS, separate, or retire.

Common state benefits include:

• Property tax exemptions for disabled veterans and surviving spouses
• Tax breaks on military retirement pay
• Free or reduced college tuition for veterans and their kids
• Hiring preferences for state jobs
• Free or cheap license plates, hunting and fishing licenses, and park passes
• State veterans homes and cemeteries

Six examples

These are summaries. Always check the state's official page, because rules and amounts change.

• Texas: No state income tax. Veterans paid at the 100% rate, with a 100% rating or individual unemployability, can get a full property tax exemption on their home. Partial exemptions of $5,000 to $12,000 of value apply at lower ratings. Some surviving spouses keep the benefit.
• Florida: No state income tax. Veterans with a service-connected, permanent and total disability can get a full property tax exemption on their homestead. Veterans rated 10% or more can get a $5,000 cut in assessed value. Some older disabled veterans get an extra discount.
• Illinois: The Standard Homestead Exemption for Veterans with Disabilities gives a $2,500 reduction at 30% to 49%, $5,000 at 50% to 69%, and at 70% or higher it can exempt most or all of a primary home. You must renew each year with your county.
• California: Starting with the 2025 tax year and through 2029, you can exclude up to $20,000 a year of military retirement pay (and Survivor Benefit Plan payments). Income limits apply: about $125,000 for single filers and $250,000 for joint filers.
• Virginia: Lets retirees subtract military retirement income on their state return, with the amount phased in over recent years. Up to $15,000 of basic military pay can be exempt for lower earners, and up to $20,000 of income for a permanent and total disability can be subtracted.
• North Carolina: Since 2022, retirees with at least 20 years of service, or who were medically retired, can deduct their military retirement pay. Some survivor plan payments also qualify.

Who qualifies

Most benefits require proof of residency, such as a driver's license, voter registration, or a homestead filing. Disability-based benefits require a VA rating letter. Many property tax breaks also have yearly deadlines, often in the spring.

How it works when you are relocating

1. Research before you choose a home. Compare property tax rules and retirement pay taxes in the states you are considering.
2. Know your legal residence. Active-duty members can often keep their home-state residency under the Servicemembers Civil Relief Act. Spouses may be able to use the same state under the Military Spouse Residency Relief Act.
3. File for exemptions right after you buy. Many counties need the form by a set date each year.
4. Get a benefits letter from VA.gov to prove your rating.
5. Visit the state veterans agency. Many have county veteran service officers who help for free.

How to find your state's agency

VA keeps a directory of state veterans affairs offices. You can also search "[your state] department of veterans affairs." Your county veteran service officer is often the best local guide.

Common mistakes

• Buying a home and missing the yearly exemption deadline.
• Assuming the rules in your last state apply in your new one.
• Not reapplying when a state requires yearly renewal.

Related benefits

Pair your state benefits with VA disability compensation, the VA home loan, and the GI Bill. Many states add their own tuition waivers on top of federal education benefits.