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Tennessee Veterans Benefits

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

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

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Property Tax

  1. Property Tax Relief for Disabled Veterans100% P&T
    Reimbursement of property tax calculated on up to $175,000 of the home's full market value

    State-funded reimbursement of property taxes paid on a disabled veteran's primary residence, administered through the County Trustee. Eligibility requires a service-connected PERMANENT AND TOTAL disability as determined by the VA, OR a qualifying condition (paraplegia/permanent paralysis of both legs, loss or loss of use of two or more limbs, legal blindness), OR a 100% total and permanent rating as a former POW. Veteran must own and occupy the home.

  2. Property Tax Relief for Surviving Spouses (of disabled veterans)100% P&T
    Continuation of disabled-veteran property tax relief (market-value basis up to $175,000 per the linked program)

    Surviving spouse of a qualifying disabled veteran may continue to receive the property tax relief benefit. Detailed eligibility/amount is administered through the County Trustee; the state page lists it as a distinct program but does not republish the dollar figures, so the specific cap is confirmed only by reference to the disabled-veteran program ($175,000 market-value basis).

Income Tax

  1. No State Income Tax on Military Retirement / VA CompensationAll veterans
    Military retirement fully untaxed; VA disability compensation untaxed (no state income tax)

    Tennessee levies no state income tax on wages or retirement income. The Hall Income Tax (interest/dividends only) was fully repealed effective Jan 1, 2021. Military retirement pay and VA disability compensation are not taxed by the state.

Education

  1. Helping Heroes GrantCombat service
    $1,000 per semester (12+ semester hours); $500 per semester (6-11 hours)

    Lottery-funded higher-education grant for honorably discharged veterans (and current/former Reserve or TN National Guard members) who received the Iraq Campaign Medal, Afghanistan Campaign Medal, or Global War on Terrorism Expeditionary Medal. Awarded first-come to roughly 375 veterans annually, up to 8 full semesters. Administered by the TN Student Assistance Corporation.

Employment

  1. Veterans' Preference in State Employment (TEAM Act)All veterans
    Tie-breaker hiring preference + interview preference

    Mandatory hiring/interview preference for honorably discharged veterans (and eligible spouses/surviving spouses) in TN state service. When a veteran and a non-veteran candidate have equal qualifications, the veteran must be given preference; an appointing authority passing over an eligible veteran must file written reasons within 30 days. Per TCA 8-30-307.

Vehicle

  1. Free Disabled Driver DecalAll veterans
    Free disabled decal

    Disabled veterans who meet the state's disabled-driver definition (TCA 55-21-102) may obtain a free disabled-driver decal to affix to their existing specialty plate. Eligibility follows the general disabled-driver statute rather than a specific VA percentage.

  2. Free Disabled Veteran License Plate & Registration100% P&T
    One free plate + free registration; county wheel/privilege tax exemption

    A veteran with a VA-determined 100% permanent total service-connected disability receives one license plate and registration free of charge. Also exempts 100% P&T veterans and former POWs from the county motor vehicle privilege tax. Per TCA 55-4-256; administered by TN Dept of Revenue (VR-13).

Recreation

  1. Lifetime Sport Hunting & Fishing License (Disabled Veterans)30%+ rating
    One-time $10 fee for lifetime sport fishing + hunting license

    Veterans who are 100% permanently and totally disabled from service-connected causes, OR 30% or more disabled by reason of service in any war, may obtain a combined lifetime sport fishing and hunting license. Issued via TWRA Miscellaneous Licenses Application.

  2. State Park Camping & Lodging Discount100%+ rating
    50% off camping (off-season); 50% off camping + cabin lodging for 100% disabled

    Tennessee resident veterans get 50% off standard nightly camping base rates during off-season (Dec 1-Feb 28/29). Veterans with a 100% total service-connected disability get 50% off camping AND overnight cabin lodging fees (premium sites excluded). Proof of service and TN residency required.

Other

  1. Veteran ID Designation on Driver LicenseAll veterans
    Veteran designation on license/ID

    Tennessee offers a 'VETERAN' designation/ID printed on a state driver license or ID card for honorably discharged veterans, used to verify status for benefits and discounts.

Veterans Home

  1. Tennessee State Veterans HomesAll veterans
    5 homes (Humboldt, Murfreesboro, Clarksville, Knoxville, Cleveland)

    Five state veterans homes provide long-term skilled nursing/residential care for eligible veterans, operated by the Tennessee State Veterans Home Board. Locations: Humboldt, Murfreesboro, Clarksville, Knoxville, and Cleveland. Per-facility eligibility/services available on each home's site.

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Common questions

What benefits do Tennessee veterans get?

Tennessee offers veteran benefits across property tax, income tax, education, employment, vehicle, recreation, other, veterans home. Highlights include Property Tax Relief for Disabled Veterans, Property Tax Relief for Surviving Spouses (of disabled veterans), No State Income Tax on Military Retirement / VA Compensation. 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 Tennessee?

State-funded reimbursement of property taxes paid on a disabled veteran's primary residence, administered through the County Trustee. Eligibility requires a service-connected PERMANENT AND TOTAL disability as determined by the VA, OR a qualifying condition (paraplegia/permanent paralysis of both leg

Does Tennessee tax military retirement or VA disability pay?

Tennessee levies no state income tax on wages or retirement income. The Hall Income Tax (interest/dividends only) was fully repealed effective Jan 1, 2021. Military retirement pay and VA disability compensation are not taxed by the state.

Do I need a VA rating to claim Tennessee 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.