Indiana Veteran Benefits

Complete guide to state benefits for Indiana veterans in 2026

Indiana Military Retirement Tax

Indiana offers a $6,250 military retirement exclusion. VA disability compensation is tax-free under federal law.

Indiana Veteran Benefits Summary: Indiana offers a $6,250 military retirement exclusion, property tax deductions for disabled veterans ($37,440 for 100% disabled), the Hoosier Veteran Assistance Foundation grants, and employment preferences. Indiana has approximately 380,000 veterans.

State Income Tax

Military retirement: $6,250 exclusion

VA disability: Tax-free (federal law)

Property Tax Deductions

  • 100% disabled: $37,440 deduction
  • Disabled veteran: $24,960 deduction
  • Mortgage deduction: Up to $3,000

Education Benefits

  • Tuition assistance: For National Guard
  • In-state tuition: For all veterans

Employment Benefits

  • Veterans' Preference: Points in state hiring