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
- Full military retirement pay tax 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 has fully exempted military retirement pay from state income tax since tax year 2022.
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 Disabled Veterans in Indiana
Type: Fixed-dollar reduction
Indiana offers two fixed-dollar assessed-value deductions for disabled veterans - $14,000 for totally disabled veterans (or wartime veterans age 62+ with a 10%+ rating, subject to an assessed-value cap) and $24,960 for wartime veterans with at least a 10% disability - which can be stacked for up to $38,960.
| VA disability rating / category | What you get |
|---|---|
| Total service-connected disability (any age), OR wartime veteran age 62+ with at least 10% | $14,000 deduction from assessed value (IC 6-1.1-12-14).Served at least 90 days, honorable discharge. The property's assessed value must not exceed $240,000 to qualify for this deduction. |
| Wartime service with at least 10% service-connected disability | $24,960 deduction from assessed value (IC 6-1.1-12-13).Served during a war/wartime period, honorable discharge, 10%+ rating. No assessed-value cap on this particular deduction. |
| Both deductions combined | A veteran meeting both sets of requirements may claim both for a combined $38,960 deduction.Must independently qualify for each. |
- Income limit: None for the standard deductions
- Age requirement: None for the totally-disabled path; age 62+ is an alternate qualifier for the $14,000 deduction for partially disabled wartime veterans
- Surviving spouse: Surviving spouses of qualifying veterans may claim the deduction (per IC 6-1.1-12-14/15); confirm specific conditions on the application.
- Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA
Source: IC 6-1.1-12-13 (partial/wartime $24,960) and IC 6-1.1-12-14 (total disability or age 62 $14,000) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Indiana Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
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.