Updated January 2026
Illinois Veteran Benefits 2026
Illinois offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in IL for 2026.
Illinois Highlights
- Full military retirement pay tax exemption
- Graduated property tax exemption by disability %
- Free license plates for disabled veterans
- Illinois Veterans Grant for education
Income Tax Treatment
Illinois has a state income tax.
Military Retirement Pay: Illinois fully exempts military retirement pay from state income tax.
Active Duty Pay: Active duty pay is fully exempt from Illinois state income tax.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Illinois does not tax VA disability payments.
Property Tax Exemption for Veterans
Veterans with 30%+ disability receive $2,500-$5,000 property tax exemption. 70%+ disabled veterans receive full exemption.
Maximum Benefit: Full exemption at 70%+ disability
To apply for property tax exemptions in Illinois, contact your county assessor's office or the Illinois Department of Veterans Affairs. You will typically need your VA disability rating letter and proof of residence.
VA Healthcare in Illinois
Illinois has approximately 4 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.