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Indiana Veterans Benefits

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

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

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Property Tax

  1. Nonprofit-Conveyed Property Deduction (IC 6-1.1-12-14.5)50%+ rating
    50%–100% of assessed value (tiered by disability rating)

    For a veteran with at least a 50% service-connected disability whose residence was conveyed to them at NO COST by an income-tax-exempt organization. Provides a tiered deduction of 50% to 100% of assessed value based on disability rating. Requires honorable discharge and minimum 90 days of service.

  2. Partial Disability Property Tax Deduction (IC 6-1.1-12-13)10%+ rating
    $24,960 off assessed value

    Deduction off assessed value for a wartime veteran with at least a 10% service-connected disability and an honorable discharge. Veteran must have served during a recognized war period (WWII, Korea, Vietnam, or Gulf War). Apply at the county auditor's office.

  3. Total Disability / Age 62 Property Tax Deduction (IC 6-1.1-12-14)10%+ rating
    $14,000 off assessed value; assessed value cap of $240,000

    Deduction off assessed value for a veteran who is either 100% (totally) service-connected disabled, OR is at least age 62 with at least a 10% service-connected disability. Requires honorable discharge and minimum 90 days of service. Property's assessed value must not exceed $240,000. Can be combined with the IC 6-1.1-12-13 deduction (combined max $38,960) if all requirements for both are met.

Income Tax

  1. Military Retirement Pay Full DeductionAll veterans
    Military retirement and survivor's benefits 100% tax-exempt

    Indiana fully exempts military retirement income and survivor's benefits. Since tax year 2022 the deduction equals the entire amount of military retirement/survivor's benefits. No disability rating required; available to all who report such income.

  2. VA Disability Compensation Not TaxedAll veterans
    VA disability compensation fully tax-exempt

    VA disability compensation is excluded from federal adjusted gross income and therefore is also not subject to Indiana income tax (Indiana AGI starts from federal AGI). No specific rating threshold.

Education

  1. Tuition and Fee Exemption for Children of Disabled Veterans / Purple Heart RecipientsAll veterans
    Up to 100% tuition + fees (20% + parent's VA disability %) for up to 124 credit-hours at public schools; up to $5,000/yr at private schools

    Indiana waives a percentage of tuition and regularly assessed fees at public colleges/universities for children of qualifying disabled veterans. The percentage covered equals 20% PLUS the veteran parent's VA disability rating (so a 100%-rated parent yields 100% coverage). Covers up to 124 semester credit-hours at the undergraduate resident rate. The veteran parent must have a service-connected death or disability, a non-dishonorable discharge, and an Indiana home-of-record at enlistment or 5+ years Indiana residency. Student must first apply before age 33. Students graduating HS on/after Jan 1, 2023 may instead receive up to $5,000/year at Indiana private non-profit schools. Administered by the Indiana Commission for Higher Education; eligibility determined by Indiana DVA.

Employment

  1. State Merit System Veterans Hiring PreferenceAll veterans
    Preference points on state merit hiring/promotion exams

    The Indiana State Merit System adds preference points for veterans applying for merit positions or promotions within state government (IC 4-15-2-18). Available to veterans with a DD-214 showing active-duty service in any branch with no discharge under other-than-honorable conditions; preference also extends to spouses of veterans. (Exact point allocations, including any added preference for disabled veterans, are set by the merit statute/rules and were not enumerated on the DVA summary page.)

Vehicle

  1. Disabled Hoosier Veteran License Plate (DAV1 / DAV2)All veterans
    Parking privileges + qualifies holder for Golden Hoosier Passport; NO registration-fee exemption

    Special license plate for a veteran with a service-connected disability resulting in loss/loss-of-use of sight in both eyes, one or both feet, one or both hands, or a condition that precludes walking without pain or difficulty. The plate authorizes handicapped parking privileges. IMPORTANT: Indiana does NOT exempt veteran-plated vehicles from registration fees or excise taxes — the plate confers parking privileges and unlocks the Golden Hoosier Passport, but is not a fee waiver. Governed by IC 9-18.5-5.

Recreation

  1. Disabled American Veteran (DAV) Hunting & Fishing LicenseAll veterans
    $2.75/year or $27.50 for 10 years

    Indiana resident veterans with a documented service-connected disability (any rating) — or DoD disability retirement — may buy a discounted DAV license covering small-game hunting and fishing (excludes stamps). Annual $2.75 or 10-year $27.50. No specific minimum VA percentage stated; requires any service-connected disability as determined by the VA.

  2. Free Hunting Days for Catastrophically Disabled VeteransAll veterans
    Free (no license/stamp) on 4 designated days/year

    Catastrophically disabled resident veterans (per 38 CFR 17.36(e) — e.g., quadriplegia, paraplegia, legal blindness, qualifying amputations) may hunt without a license or state stamp on four designated days per year on private land and public land open to hunting. Must follow season/bag/equipment rules and be accompanied by an 18+ companion.

  3. Golden Hoosier Passport (Disabled Veteran Pass)All veterans
    $25/year unlimited state park/forest entry

    Annual pass giving unlimited entry to all Indiana state-owned parks, recreation areas, reservoirs, and forests. Veterans who qualify for a Disabled Hoosier Veteran (DAV1/DAV2) license plate under IC 9-18.5-5 may purchase it for $25 regardless of age (otherwise normally limited to age 65+ or SSDI recipients).

Veterans Home

  1. Indiana Veterans' Home (West Lafayette)All veterans
    Individualized cost; Medicaid-assist available

    State veterans home in West Lafayette providing skilled nursing care, short-term rehabilitation, and domiciliary care. Eligible: honorably discharged U.S. armed forces veterans and their spouses/surviving spouses, plus Gold Star parents. Must be an Indiana resident for at least 1 year immediately before application (residency waivers possible for those who enlisted from or discharged to Indiana); criminal background check required. Cost is individualized; the home provides an estimated rate and assists with Medicaid application if benefits/funds are insufficient.

Financial

  1. Military Family Relief Fund (MFRF)All veterans
    One-time grant up to $2,500

    One-time grant administered by the Indiana DVA for short-term financial emergencies (housing, utilities, food, medical, education/employment expenses, childcare, transportation, essential household needs). Eligibility: Indiana resident; veteran with honorable, under-honorable-conditions, or certain other-than-honorable discharge; household income not exceeding 2x the U.S. federal poverty guidelines; demonstrated genuine financial hardship. DVA marketing materials state a one-time grant up to $2,500 (the MFRF eligibility page itself does not restate the dollar cap).

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Common questions

What benefits do Indiana veterans get?

Indiana offers veteran benefits across property tax, income tax, education, employment, vehicle, recreation, veterans home, financial. Highlights include Nonprofit-Conveyed Property Deduction (IC 6-1.1-12-14.5), Partial Disability Property Tax Deduction (IC 6-1.1-12-13), Total Disability / Age 62 Property Tax Deduction (IC 6-1.1-12-14). 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 Indiana?

For a veteran with at least a 50% service-connected disability whose residence was conveyed to them at NO COST by an income-tax-exempt organization. Provides a tiered deduction of 50% to 100% of assessed value based on disability rating. Requires honorable discharge and minimum 90 days of service.

Does Indiana tax military retirement or VA disability pay?

Indiana fully exempts military retirement income and survivor's benefits. Since tax year 2022 the deduction equals the entire amount of military retirement/survivor's benefits. No disability rating required; available to all who report such income.

Do I need a VA rating to claim Indiana 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.