Updated August 2026

Indiana Veteran Benefits 2026

Hoosier hospitality extends to everyone who wore the uniform.

Indiana’s benefits quietly stack up — excise credits, park passes, cheap licenses, and college help for your kids. Every claim below is checked against Indiana code and agency pages.

Indiana Highlights

Full military retirement pay tax exemption
Property tax deduction for disabled veterans
Vehicle excise tax relief — apply an unused property-tax deduction to your plates, or claim a $70/vehicle credit if you own no property
Reduced-fee $2.75/year hunting & fishing (DAV) license for disabled veterans — small game & fishing only
$25 annual state-park pass for disabled veterans; free Golden Hoosier Passport for former POWs
Remission of Fees — free tuition at state colleges for children of eligible disabled veterans
Indiana Military Family Relief Fund

The Soldiers and Sailors Monument obelisk on Monument Circle in downtown Indianapolis, Indiana — Soldiers and Sailors Monument, Monument Circle, Indianapolis. Photo: David Wilson (CC BY 2.0)

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

Recent change: Amounts ($14,000 / $24,960; $240,000 AV cap) reflected in the 2025 Indiana Code. SB 510 (2025 session) was introduced touching disabled-veteran deductions - check whether it passed and changed amounts.

Before you rely on a dollar figure: the exact current amount can change year to year. Confirm with your county assessor or the Indiana Department of Veterans Affairs using the source link below.

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.

Check your exemption by rating & state →

Vehicle & Registration Benefits

Motor vehicle excise tax credit for disabled veterans: Indiana collects an annual vehicle excise tax with your registration, and disabled veterans can offset it two ways. If you receive the disabled-veteran property tax deductions, “any unused portion of the deduction may be applied to personal property taxes and then to excise taxes for either a motor vehicle” under IC 6-6-5-5, per the Department of Local Government Finance's veterans' deductions FAQ. If you qualify for those deductions but own no property to apply them to, IC 6-6-5-5.2 instead gives you (or your surviving spouse) a credit against the Vehicle Excise Tax or Recreational Vehicle Excise Tax on up to two vehicles, equal to the lesser of the excise tax due or $70 per vehicle, per registration year. Claim it with BMV State Form 52870, submitted with an affidavit from your county auditor stating that you do not own qualifying property.

Disabled Hoosier Veteran plate: Eligibility under IC 9-18.5-5-1 is tied to how a service-connected disability affects mobility, not just the rating percentage: loss of sight in both eyes (or permanent vision impairment), loss or permanent loss of use of one or both feet or hands, a physical condition that precludes walking “without pain or difficulty,” or a VA rating of at least 50% with at least 60% of the rating attributable to a mobility disability. Apply with your VA award letter showing the disability breakdown plus your DD-214; the plate carries handicapped-parking privileges, which only apply when the veteran is in the vehicle. Details: IDVA veteran license plate eligibility.

Other military & veteran plates: Any Indiana resident discharged honorably or under honorable conditions (including Guard and reserve members who completed active duty for training) can buy the Hoosier Veteran plate for $15 plus normal registration fees — no application form, just your DD-214, NGB-22, or discharge certificate at a license branch; personalization costs $45 more. The Purple Heart plate requires documentation of the medal (orders, certificate, or DD-214), and the Ex-POW plate covers veterans held captive during WWI, WWII, Korea, or Vietnam, with surviving spouses entitled to keep the plates. The Gold Star Family plate is issued at no additional cost. See the IDVA veteran license plates page and the BMV's Indiana military license plates overview.

Recreation: Parks, Hunting & Fishing

State parks — discounted, not free: Indiana DNR states plainly that “veterans typically do not receive free admission at Indiana State Parks.” What disabled veterans get is a discounted $25 Disabled Hoosier Veteran annual entrance pass (the standard resident annual pass is $50), available to anyone eligible for the Disabled Hoosier Veteran license plate under IC 9-18.5-5 — gate staff will sell it to you if your vehicle carries DHV plates, or bring IDVA-signed proof of eligibility (State Form 32584). The pass gives unlimited admission for the calendar year to state parks, recreation areas, reservoirs, and forests, but not historic sites or museums. Two groups do ride free: Indiana residents who are former POWs, and their surviving spouses, receive a free Golden Hoosier Passport mailed automatically each year, and Indiana Gold Star families qualify for a free annual entrance pass. Source: DNR state park entrance fees and the IDVA Golden Hoosier Passport page.

Hunting & fishing — the $2.75 DAV license: Indiana residents who served in the armed forces and have a VA service-connected disability (no minimum rating) or disability retirement benefits administered by the Department of Defense can buy the Disabled American Veteran (DAV) license: $2.75 for one year or $27.50 for ten years. It covers fishing and small-game hunting only — deer and turkey licenses and state stamps (gamebird, waterfowl, trout/salmon) must still be bought separately at regular price. Apply once with State Form 50833 through the DNR; after approval, the veteran status stays in your license account so you can buy DAV licenses online or in person in future years. Source: DNR licenses for disabled veterans and the DNR license fee schedule.

Education & Other Indiana Benefits

Remission of Fees — free tuition for children of disabled veterans: Indiana's flagship education benefit pays up to 100% of tuition and regularly assessed fees for up to 124 semester credit hours at Indiana public colleges and universities, at the undergraduate resident rate, for the child of an eligible disabled veteran or Purple Heart recipient. The veteran must have served during a war (or earned a service, campaign, or expeditionary medal), have a VA service-connected disability (or have died from a service-connected cause), have received a discharge other than dishonorable, and have either listed Indiana as home of record at enlistment or lived in Indiana for five years before the student first applies. The service era matters: if the veteran first entered service before July 1, 2011, the student receives the full 100% remission at any disability rating; if the veteran entered on or after July 1, 2011, a rating of 80% or higher earns 100%, and a lower rating earns 20% plus the disability rating percentage (a 50% rating = 70% remission). The student must be a biological child or adopted before age 18 (stepchildren are not eligible), must apply before turning 33, gets eight academic years to use the 124 hours, and must file the FAFSA each year and apply through ScholarTrack. Students who graduated high school on or after January 1, 2023 can instead take up to $5,000 per year at Indiana private, non-profit colleges. Details: Indiana Commission for Higher Education and the IDVA full eligibility requirements.

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.

Official Indiana Veterans Resources

Frequently Asked Questions

Does Indiana tax military retirement pay?

Indiana has fully exempted military retirement pay from state income tax since tax year 2022.

Does Indiana offer property tax exemptions for disabled veterans?

Does Indiana have a state income tax?

Indiana has a state income tax. Indiana has fully exempted military retirement pay from state income tax since tax year 2022.

Do disabled veterans get a vehicle excise tax credit in Indiana?

Yes, two ways. A veteran receiving Indiana's disabled-veteran property tax deductions can apply any unused portion of the deduction to personal property taxes and then to the motor vehicle excise tax (IC 6-6-5-5). A qualifying disabled veteran (or surviving spouse) who does not own property can instead claim a credit against the vehicle or recreational vehicle excise tax on up to two vehicles, equal to the lesser of the excise tax due or $70 per vehicle per registration year (IC 6-6-5-5.2). File BMV State Form 52870 with an affidavit from your county auditor stating you own no qualifying property.

Do disabled veterans get free state park admission and hunting or fishing licenses in Indiana?

Discounted, not free. Veterans eligible for the Disabled Hoosier Veteran license plate can buy a $25 annual state park entrance pass (the standard annual pass is $50). Only Indiana residents who are former POWs, and their surviving spouses, receive a free Golden Hoosier Passport, mailed automatically each year. Resident veterans with a VA service-connected disability or DoD disability retirement can buy the Disabled American Veteran (DAV) hunting and fishing license for $2.75 per year or $27.50 for 10 years; it covers fishing and small-game hunting but not deer, turkey, or state stamps.

Do children of disabled Indiana veterans get free college tuition?

Often, yes. Indiana's Remission of Fees program covers up to 100% of tuition and regularly assessed fees for up to 124 semester credit hours at Indiana public colleges, at the undergraduate resident rate, for the child of an eligible wartime veteran with a VA service-connected disability (the program also covers children of Purple Heart recipients). If the veteran first entered service before July 1, 2011, the remission is 100% at any disability rating. If the veteran entered on or after July 1, 2011, a rating of 80% or higher earns 100%, and a lower rating earns 20% plus the rating percentage. Students must apply before age 33 through ScholarTrack, and eligible students who graduated high school on or after January 1, 2023 can instead get up to $5,000 per year at Indiana private non-profit colleges.