Tennessee Veteran Benefits
Complete guide to state benefits for Tennessee veterans in 2026
Tennessee Tax Advantage
Tennessee has no state income tax on wages! Military retirement pay and VA disability compensation are completely tax-free at the state level. Tennessee only taxes interest and dividends, not earned income.
Tennessee Veteran Benefits Summary: Tennessee offers no state income tax on wages/retirement, property tax relief for disabled veterans ($175,000+ exemption for certain disabled veterans), free college through TN Reconnect for veterans, and state employment preferences. Tennessee has approximately 430,000 veterans.
State Income Tax
Military retirement: No state tax
VA disability: No state tax
Tennessee taxes only interest/dividends, not wages.
Property Tax Exemptions
- 100% disabled: Up to $175,000 exemption
- Disabled veteran: Various exemptions
- Widow(er): May continue exemption
Education Benefits
- TN Reconnect: Free community college for veterans
- HELPS Act: In-state tuition for veterans
- Dependent benefits: Available for qualifying families
Employment Benefits
- Veterans' Preference: Points in state hiring
- Disabled veteran: Additional preference
2026 BAH Rates for Tennessee Bases
| Installation | E-5 w/Dep |
|---|---|
| Nashville | $2,088 |
| Knoxville | $1,596 |
| Memphis | $1,587 |