North Carolina Veteran Benefits
Complete guide to state benefits for North Carolina veterans in 2026
North Carolina Tax Advantage
North Carolina fully exempts military retirement pay from state income tax! Bailey Settlement ensures all military retirees vested before 8/12/1989 are fully exempt. VA disability is also tax-free.
North Carolina Veteran Benefits Summary: North Carolina offers full military retirement exemption (Bailey Settlement), property tax exemptions for 100% disabled veterans ($45,000 homestead), education scholarships for dependents, and the NC4Vets job portal. North Carolina has approximately 700,000 veterans — one of the largest veteran populations.
State Income Tax
Military retirement: Fully exempt (Bailey)
VA disability: Tax-free (federal law)
Applies to those vested before 8/12/1989.
Property Tax Exemptions
- 100% disabled: First $45,000 exempt
- Elderly/disabled: Additional exemptions
- Circuit breaker: Tax relief program
Education Benefits
- Scholarship for Children: Of war veterans
- In-state tuition: For all veterans
- Community college: Free tuition programs
Employment Benefits
- NC4Vets: State job portal
- Veterans' Preference: 5-10 points
2026 BAH Rates for North Carolina Bases
| Installation | E-5 w/Dep |
|---|---|
| Camp Lejeune | $1,536 |
| Fort Liberty | $1,407 |
| Cherry Point MCAS | $1,485 |