Pennsylvania Veteran Benefits
Complete guide to state benefits for Pennsylvania veterans in 2026
Pennsylvania Tax Advantage
Pennsylvania fully exempts military retirement pay from state income tax! All retirement income is tax-free in PA. VA disability compensation is also tax-free under federal law.
Pennsylvania Veteran Benefits Summary: Pennsylvania offers full military retirement exemption (all retirement income exempt), property tax/rent rebates for disabled veterans, PHEAA educational grants, and 6 state veterans homes. Pennsylvania has approximately 750,000 veterans.
State Income Tax
Military retirement: Fully exempt
VA disability: Tax-free (federal law)
PA exempts all retirement income.
Property Tax Relief
- 100% disabled: Full property tax exemption
- Property Tax/Rent Rebate: Up to $1,000
- Surviving spouse: May continue exemption
Education Benefits
- PHEAA grants: For veterans
- Educational Gratuity: For dependents of deceased veterans
- In-state tuition: For all veterans
Employment Benefits
- Veterans' Preference: 10 points
- Disabled veteran: Additional preference
2026 BAH Rates for Pennsylvania
| Location | E-5 w/Dep |
|---|---|
| Philadelphia | $2,274 |
| Pittsburgh | $1,773 |