Kentucky Veteran Benefits
Complete guide to state benefits for Kentucky veterans in 2026
Kentucky Military Retirement Tax
Kentucky offers a $31,110 military retirement exclusion (indexed annually). VA disability is tax-free under federal law.
Kentucky Veteran Benefits Summary: Kentucky offers a $31,110 military retirement exclusion, property tax exemptions for 100% disabled veterans, education benefits, and Kentucky Veterans Program Trust Fund assistance. Kentucky has approximately 280,000 veterans.
State Income Tax
Military retirement: $31,110 exclusion
VA disability: Tax-free (federal law)
Property Tax
- 100% disabled: Full exemption
- Homestead: $46,350 exemption (65+)
Education
- KHEAA grants: For veterans
- In-state tuition: For all veterans
Employment
- Veterans' Preference: Points in hiring
2026 BAH Rates for Kentucky
| Installation | E-5 w/Dep |
|---|---|
| Fort Knox | $1,530 |
| Fort Campbell | $1,428 |