North Carolina Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax
The state benefits North Carolina 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.
North Carolina excludes the first $45,000 of appraised value of the permanent residence of an honorably discharged veteran with a total and permanent service-connected disability (or specially adapted housing grant), and of a never-remarried surviving spouse, with no age or income limit. Military retired pay is fully deductible from NC income tax for retirees with at least 20 years of service or a medical retirement (and their Survivor Benefit Plan beneficiaries), and Bailey-vested retirees (5+ years of creditable service as of August 12, 1989) also exclude it. Other state benefits include free Disabled Veteran license plates, a $14 lifetime hunting/fishing license for 50%+ disabled veterans, the Children of Wartime Veterans Scholarship, five State Veterans Homes and hiring preference for state and local government jobs. (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 North Carolina
| Benefit | Who qualifies | Amount | How to apply | Source |
|---|---|---|---|---|
| Disabled Veteran Homestead Exclusion (G.S. 105-277.1C) | Veteran with an honorable or under-honorable-conditions discharge who has a total and permanent service-connected disability (described by NCDMVA as a permanent and total 100% rating) or who received VA specially adapted housing benefits under 38 U.S.C. 2101, and who was disabled as of January 1 of the tax year. Also open to a never-remarried surviving spouse of such a veteran, of a veteran who died of a service-connected condition, or of a servicemember who died of a service-connected condition in the line of duty. Property must be the owner's permanent residence. No age or income limit. | Excludes up to the first $45,000 of the appraised value of the permanent residence (2026 Form AV-9, G.S. 105-277.1C). Co-owners who are not spouses share a single $45,000 maximum. It cannot be combined with the Elderly or Disabled Exclusion or the Circuit Breaker Deferment. | Fill in Sections 1-2 of Form NCDVA-9 and have a County Veterans Service Office or State Veterans Service Center certify it. Then file the certified NCDVA-9 with Form AV-9 (Parts 3 and 6) at the county tax assessor by June 1 of the tax year. | NC Department of Military and Veterans Affairs |
Is military retired pay taxed in North Carolina?
| Treatment | Amount or limit | Source |
|---|---|---|
| Fully deductible in two ways. (1) The Uniformed Services retirement deduction (D-400 Schedule S, Line 21) covers retirement pay of members who served at least 20 years or were medically retired, plus Survivor Benefit Plan payments to their beneficiaries. It does not cover severance pay under 10 U.S.C. Chapter 61. (2) The Bailey settlement exclusion (Schedule S, Line 20) covers retirees who had 5 or more years of creditable service as of August 12, 1989. The same income cannot be deducted under both. | No dollar cap. The deduction covers the full amount of qualifying retirement pay included in federal AGI (tax year 2025 D-401 instructions, the latest published). | ncdor.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 North Carolina veteran benefits
Vehicles and license plates
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Disabled Veteran license plate, with the plate fee waived | Veterans with a 100% combined VA rating, or who receive Individual Unemployability paid at the 100% rate. Other ratings qualify for the Partially Disabled Veteran plate, which costs no more than a regular plate. Ex-POW, Medal of Honor, Silver Star, Distinguished Service Cross, Legion of Valor and Bronze Star with V plates are also free. Apply on Form MVR-33A, with Section 3 certified by an NCDMVA-accredited Veterans Service Officer. | Free; the license plate fee is waived. A yearly personalization fee applies if the plate is personalized. | milvets.nc.gov |
Hunting, fishing and other licenses
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Lifetime hunting and fishing license for resident disabled veterans | North Carolina residents rated 50% or more disabled by the VA. The license stays valid as long as the holder remains 50% or more disabled. | $14 for a lifetime inland fishing, coastal recreational fishing, or hunting/inland fishing combo license; $126 Sportsman; $139 Sportsman/Coastal; plus a $5.00 transaction fee (application form rev. 4-2025) | milvets.nc.gov |
Education
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| North Carolina Children of Wartime Veterans Scholarship | Children under 25 who are NC domiciliaries and residents, whose veteran parent served during a period of war and is in a qualifying class: IA (killed or died of service-connected causes), IB (100% wartime service-connected disability), II (20-99% wartime service-connected disability or Purple Heart; competitive, up to 200 a year), III (other statutory categories; competitive, up to 200 a year) or IV (POW/MIA). NC residency connections apply (G.S. 143B-1224 to 1226). | Scholarship at North Carolina schools for up to eight academic semesters (four academic years), to be used within eight years of the award with a cumulative GPA of at least 2.0 (per NCDMVA scholarships page). The benefit level depends on the class. | milvets.nc.gov |
Employment
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Veterans' employment preference (G.S. 126-80, Article 13) | Veterans, disabled veterans, their spouses and National Guard members applying for state, county and local government jobs in North Carolina. Per NCDMVA, a law signed in July 2026 extends the preference to spouses of active-duty servicemembers. | Hiring preference in state and local government employment | milvets.nc.gov |
State veterans homes
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| North Carolina State Veterans Homes (skilled nursing care) | Veterans needing skilled nursing care (contact the homes for admission criteria) | NCDMVA runs full-service State Veterans Homes in Black Mountain, Fayetteville, Kernersville, Kinston and Salisbury. They are approved for Medicare, Medicaid and third-party insurance. | milvets.nc.gov |
Common questions
Does North Carolina have a property tax exemption for disabled veterans?
Yes: Disabled Veteran Homestead Exclusion (G.S. 105-277.1C). Who qualifies: Veteran with an honorable or under-honorable-conditions discharge who has a total and permanent service-connected disability (described by NCDMVA as a permanent and total 100% rating) or who received VA specially adapted housing benefits under 38 U.S.C. 2101, and who was disabled as of January 1 of the tax year. Also open to a never-remarried surviving spouse of such a veteran, of a veteran who died of a service-connected condition, or of a servicemember who died of a service-connected condition in the line of duty. Property must be the owner's permanent residence. No age or income limit.. Amount: Excludes up to the first $45,000 of the appraised value of the permanent residence (2026 Form AV-9, G.S. 105-277.1C). Co-owners who are not spouses share a single $45,000 maximum. It cannot be combined with the Elderly or Disabled Exclusion or the Circuit Breaker Deferment. (NC Department of Military and Veterans Affairs - Veterans Property Tax Relief).
How do I apply for the North Carolina veteran property tax exemption?
Fill in Sections 1-2 of Form NCDVA-9 and have a County Veterans Service Office or State Veterans Service Center certify it. Then file the certified NCDVA-9 with Form AV-9 (Parts 3 and 6) at the county tax assessor by June 1 of the tax year. (NC Department of Military and Veterans Affairs - Veterans Property Tax Relief).
Does North Carolina tax military retirement pay?
Fully deductible in two ways. (1) The Uniformed Services retirement deduction (D-400 Schedule S, Line 21) covers retirement pay of members who served at least 20 years or were medically retired, plus Survivor Benefit Plan payments to their beneficiaries. It does not cover severance pay under 10 U.S.C. Chapter 61. (2) The Bailey settlement exclusion (Schedule S, Line 20) covers retirees who had 5 or more years of creditable service as of August 12, 1989. The same income cannot be deducted under both. Amount or limit: No dollar cap. The deduction covers the full amount of qualifying retirement pay included in federal AGI (tax year 2025 D-401 instructions, the latest published). (ncdor.gov).
What other benefits do veterans get in North Carolina?
Disabled Veteran license plate, with the plate fee waived (milvets.nc.gov); North Carolina Children of Wartime Veterans Scholarship (milvets.nc.gov); Lifetime hunting and fishing license for resident disabled veterans (milvets.nc.gov); North Carolina State Veterans Homes (skilled nursing care) (milvets.nc.gov); Veterans' employment preference (G.S. 126-80, Article 13) (milvets.nc.gov). Who qualifies and the amounts are in the tables above.
Sources
- NC Department of Military and Veterans Affairs - Veterans Property Tax Relief
- ncdor.gov
- milvets.nc.gov
- milvets.nc.gov
- milvets.nc.gov
- milvets.nc.gov
- milvets.nc.gov
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
North Carolina senior property tax relief → North Carolina 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 →