Updated January 2026
Kentucky Veteran Benefits 2026
Kentucky offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in KY for 2026.
Kentucky Highlights
- Partial military retirement exemption up to $31,110
- Full property tax exemption for 100% disabled
- Free hunting and fishing licenses for disabled veterans
- Kentucky Veterans Program Trust Fund
Income Tax Treatment
Kentucky has a state income tax.
Military Retirement Pay: Kentucky exempts up to $31,110 of military retirement pay from state income tax.
Active Duty Pay: Active duty pay is fully exempt from Kentucky income tax.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Kentucky does not tax VA disability payments.
Property Tax Exemption for Veterans
100% disabled veterans receive full property tax exemption on homestead.
Maximum Benefit: Full exemption for 100% disabled
To apply for property tax exemptions in Kentucky, contact your county assessor's office or the Kentucky Department of Veterans Affairs. You will typically need your VA disability rating letter and proof of residence.
VA Healthcare in Kentucky
Kentucky 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.