Updated January 2026
Indiana Veteran Benefits 2026
Indiana offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in IN for 2026.
Indiana Highlights
- Partial military retirement exemption
- Property tax deduction for disabled veterans
- Free hunting and fishing licenses for disabled veterans
- Indiana Military Family Relief Fund
Income Tax Treatment
Indiana has a state income tax.
Military Retirement Pay: Indiana exempts up to $6,250 of military retirement pay from state income tax.
Active Duty Pay: Active duty pay earned in a combat zone is exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Indiana does not tax VA disability payments.
Property Tax Exemption for Veterans
100% disabled veterans receive property tax deduction up to $37,440 of assessed value.
Maximum Benefit: $37,440 deduction for 100% disabled
To apply for property tax exemptions in Indiana, contact your county assessor's office or the Indiana Department of Veterans Affairs. You will typically need your VA disability rating letter and proof of residence.
VA Healthcare in Indiana
Indiana has approximately 2 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.