Kentucky Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax
The state benefits Kentucky gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.
Kentucky has no separate veterans' property tax exemption; a veteran classified as totally disabled qualifies for the same homestead exemption as homeowners 65+ ($49,100 off assessed value for the 2025-2026 assessment years), and a veteran with a service-connected disability does not have to reapply each year. Military retired pay gets Kentucky's pension income exclusion of up to $31,110, with more excludable for service performed before January 1, 1998 (Schedule P), and active-duty pay is not taxed. (sources)
Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.
Property tax exemptions for veterans in Kentucky
| Benefit | Who qualifies | Amount | How to apply | Source |
|---|---|---|---|---|
| Homestead exemption (disability route), available to disabled veterans | Kentucky homeowner classified as totally disabled under a program authorized or administered by a U.S. government agency (including the VA) or any retirement system, who has received disability payments for the entire assessment period. No income limit. Veterans with a service-connected disability do not have to reapply each year; most other disability applicants must reapply annually. | $49,100 subtracted from the home's assessed value for the 2025-2026 assessment years (example: a $200,000 home is taxed on $150,900). Same amount as the age-65 exemption. | File Form 62A350, 'Application for Exemption Under the Homestead/Disability Amendment', with proof of disability at the Property Valuation Administrator (PVA) office in the county where the property is. | Kentucky Department of Revenue |
Is military retired pay taxed in Kentucky?
| Treatment | Amount or limit | Source |
|---|---|---|
| Partially exempt. Military retired pay is treated as pension income and gets Kentucky's pension income exclusion. Retired military with federal pension income above the cap complete Schedule P (Kentucky Pension Income Exclusion); those with service performed before January 1, 1998 may exclude more than the cap. Active-duty military pay is fully excludable (Schedule M). | Up to $31,110 of pension and retirement income excluded per taxpayer ($41,110 for tax year 2017 and earlier); more may be excluded for service performed before 1/1/1998, computed on Schedule P. | revenue.ky.gov |
For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.
Other Kentucky veteran benefits
Vehicles and license plates
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Military and veteran license plates (37 motor vehicle and motorcycle designs) | Eligible service members, veterans and retirees, for a non-commercial vehicle of 10,000 lbs or less, with proof such as a current Armed Forces ID card or DD-214. Request the plate through the county clerk. | $5.00 of the plate fee goes to the Veterans' Trust Fund at issue and at each renewal. A personalized military plate costs an extra $25.00 each year (up to 5 characters). | drive.ky.gov |
Other benefits
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Veteran designation on a Kentucky driver's license or ID card | Honorably discharged veterans who show a VA ID card, VA Health ID card, NGB22, DD257, DD256 or DD214 in person at a Driver Licensing Regional Office. | No fee listed for the designation | drive.ky.gov |
Common questions
Does Kentucky have a property tax exemption for disabled veterans?
Yes: Homestead exemption (disability route), available to disabled veterans. Who qualifies: Kentucky homeowner classified as totally disabled under a program authorized or administered by a U.S. government agency (including the VA) or any retirement system, who has received disability payments for the entire assessment period. No income limit. Veterans with a service-connected disability do not have to reapply each year; most other disability applicants must reapply annually.. Amount: $49,100 subtracted from the home's assessed value for the 2025-2026 assessment years (example: a $200,000 home is taxed on $150,900). Same amount as the age-65 exemption. (Kentucky Department of Revenue - Homestead & Disability Exemptions).
How do I apply for the Kentucky veteran property tax exemption?
File Form 62A350, 'Application for Exemption Under the Homestead/Disability Amendment', with proof of disability at the Property Valuation Administrator (PVA) office in the county where the property is. (Kentucky Department of Revenue - Homestead & Disability Exemptions).
Does Kentucky tax military retirement pay?
Partially exempt. Military retired pay is treated as pension income and gets Kentucky's pension income exclusion. Retired military with federal pension income above the cap complete Schedule P (Kentucky Pension Income Exclusion); those with service performed before January 1, 1998 may exclude more than the cap. Active-duty military pay is fully excludable (Schedule M). Amount or limit: Up to $31,110 of pension and retirement income excluded per taxpayer ($41,110 for tax year 2017 and earlier); more may be excluded for service performed before 1/1/1998, computed on Schedule P. (revenue.ky.gov).
What other benefits do veterans get in Kentucky?
Military and veteran license plates (37 motor vehicle and motorcycle designs) (drive.ky.gov); Veteran designation on a Kentucky driver's license or ID card (drive.ky.gov). Who qualifies and the amounts are in the tables above.
Sources
Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.
Related
Kentucky senior property tax relief → Kentucky state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →