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Illinois Veterans Benefits

Beyond your federal VA disability compensation, Illinois offers its own benefits for veterans — property tax, income tax, education, employment, vehicle, recreation, veterans home. Here's what Illinois veterans can claim, who qualifies, and how to apply.

14 state benefits · Property Tax, Income Tax, Education, Employment, Vehicle, Recreation, Veterans Home · Last verified 2026-06-16

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Property Tax

  1. Returning Veterans' Homestead ExemptionCombat service
    $5,000 reduction in EAV for two consecutive tax years

    A one-time $5,000 reduction in EAV for veterans returning from active duty in an armed conflict, applicable for the two consecutive tax years following return. No disability rating required. 35 ILCS 200/15-172.

  2. SHEVD — 30-49% tier30%+ rating
    $2,500 reduction in EAV

    Standard Homestead Exemption for Veterans with Disabilities for those rated 30% to 49% service-connected: $2,500 reduction in equalized assessed value (EAV) on the primary residence. 35 ILCS 200/15-169.

  3. SHEVD — 50-69% tier50%+ rating
    $5,000 reduction in EAV

    Standard Homestead Exemption for Veterans with Disabilities for those rated 50% to 69% service-connected: $5,000 reduction in equalized assessed value (EAV) on the primary residence. 35 ILCS 200/15-169.

  4. Specially Adapted Housing Exemption for Veterans with DisabilitiesAll veterans
    Up to $100,000 reduction in assessed value

    For housing acquired or constructed with federal funds (VA Specially Adapted Housing grant) specifically adapted to a veteran's service-connected disability, an EAV reduction of up to $100,000. Codified at 35 ILCS 200/15-165. The threshold tied to receipt of a federal SAH grant rather than a specific rating percentage; set min_rating_pct=0 because eligibility is driven by the grant, not a stated rating floor — confirm specific rating with county assessor.

  5. Standard Homestead Exemption for Veterans with Disabilities (SHEVD) — 70%+ tier70%+ rating
    First $250,000 of EAV exempt (effectively full exemption for typical homes)

    Tiered EAV property tax exemption based on VA service-connected disability rating on a veteran's primary residence. At 70% or greater, the first $250,000 of EAV of the residential property is fully exempt from taxation (effectively a full exemption for most homes, since IL assesses at ~33.33% of market value). Veteran must be an IL resident, honorably discharged, and own/occupy the home as primary residence. Codified at 35 ILCS 200/15-169.

Income Tax

  1. Military Retirement Pay Subtraction (IL-1040 Line 5)All veterans
    Military retirement fully exempt from Illinois income tax

    Illinois does not tax military retirement pay. The federally taxed portion of a government/military retirement or disability plan reported on the federal return may be subtracted on Form IL-1040, Line 5. No rating required. VA disability compensation is also untaxed because it is not in federal AGI.

Education

  1. Illinois Veterans' Grant (IVG)All veterans
    Full tuition + mandatory fees, up to 4 years full-time equivalent

    Pays tuition and certain mandatory fees at all Illinois state-supported colleges, universities, and community colleges for eligible veterans, for the equivalent of four years of full-time enrollment. Eligibility: IL resident at least 6 months before entering service, honorably discharged, and completed at least one full year of federal active duty (or served in a designated combat zone). No disability rating required. Administered via ISAC.

  2. MIA/POW Scholarship100% P&T
    Full tuition and certain fees for eligible dependents

    Education scholarship for dependents (spouse/children) of veterans who are POW, MIA, died on active duty, died of a service-connected disability, or are rated 100% permanently and totally disabled from service-connected conditions. Covers tuition and fees at Illinois state-supported schools. Set min_rating_pct=100 since the disability-based path requires a 100% rating (other paths are death/POW/MIA based).

Employment

  1. Veterans' Preference Points for State EmploymentAll veterans
    Up to 10 preference points on state exams

    Qualified veterans receive preference points added to passing scores on State of Illinois employment examinations: generally 10 points for service-connected disabled veterans, 5 points for veterans who served during a time of hostilities with a foreign country, and 3 points for other qualifying service (including IL National Guard / reserve component). Administered by CMS; requires certified DD-214. No specific rating floor for the wartime/general tiers.

Vehicle

  1. Disabled Veteran License Plates (registration fee waiver)All veterans
    First set free; annual registration fee waived for first set

    Veterans with proof of a service-connected disability from the VA, plus physician certification that the disability qualifies them for persons-with-disabilities plates, may obtain plates with no registration fee. The first set of Disabled Veteran plates is issued at no charge (registration fee waived); plates also confer disability parking privileges. Issued by the IL Secretary of State.

  2. Service-Connected Disabled Veteran (ISERVE) License Plates50%+ rating
    First set free (registration fee waived)

    Specialty plates for veterans with a 50% or greater service-connected disability. First set issued at no charge (registration fee waived); a second set carries the standard registration fee (~$101 per search results — confirm current amount with SOS). Issued by the IL Secretary of State.

Recreation

  1. Free Hunting & Fishing License (10%+ disability)10%+ rating
    Free hunting and fishing licenses

    Veterans receiving 10% or greater service-connected compensation (or a total-disability pension) are not required to purchase Illinois hunting and fishing licenses. Requires DD-214, a Disability Affidavit from IDVA, and current VA verification. Per IDVA, this applies regardless of state of residency for those receiving 10%+ compensation.

  2. State Park Camping/Admission Fee ExemptionAll veterans
    Free camping (and admission) at IL DNR parks

    Disabled veterans and former prisoners of war who are Illinois residents may camp free of charge at Illinois Department of Natural Resources (DNR) parks. Apply through a local Veteran Service Office. The exact qualifying disability rating is not stated on the IDVA permits page; DNR Disabled Outdoor Opportunities policies govern specifics — confirm rating threshold with DNR.

Veterans Home

  1. Illinois Veterans' Homes (Quincy, Manteno, LaSalle, Anna, Chicago)All veterans
    Skilled nursing, memory care, and limited domiciliary care

    IDVA operates five veterans' homes providing skilled nursing and memory care (Anna and Quincy also offer limited domiciliary care). Eligible: honorably discharged veterans with at least one day of active duty who have Illinois service credit or one year of IL residency before applying. Priority to wartime-era veterans; post-9/7/1980 enlistees need 24 months continuous service. Spouses/widows may be admitted at Anna and Quincy based on availability. No disability rating required.

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Common questions

What benefits do Illinois veterans get?

Illinois offers veteran benefits across property tax, income tax, education, employment, vehicle, recreation, veterans home. Highlights include Returning Veterans' Homestead Exemption, SHEVD — 30-49% tier, SHEVD — 50-69% tier. Eligibility varies — some benefits require a VA disability rating, 100% P&T status, or combat service.

What property tax exemption do disabled veterans get in Illinois?

A one-time $5,000 reduction in EAV for veterans returning from active duty in an armed conflict, applicable for the two consecutive tax years following return. No disability rating required. 35 ILCS 200/15-172.

Does Illinois tax military retirement or VA disability pay?

Illinois does not tax military retirement pay. The federally taxed portion of a government/military retirement or disability plan reported on the federal return may be subtracted on Form IL-1040, Line 5. No rating required. VA disability compensation is also untaxed because it is not in federal AGI.

Do I need a VA rating to claim Illinois benefits?

Many state benefits are tied to your VA disability rating — the higher your rating, the more you may qualify for. Use the free VA Ready calculator to confirm your combined rating, then check which state benefits you've earned.

State benefit rules, amounts, and eligibility change and vary by county or municipality. Estimated values are approximate. Always confirm current details with the state agency or the official source linked above before relying on a benefit. VA Ready is not affiliated with the U.S. Department of Veterans Affairs or any state agency, and this page is not legal, tax, or financial advice.