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 tax exemption
- 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 fully exempts military pensions for service before 1998 and otherwise excludes up to $31,110 of retirement income per person each year.
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 Disabled Veterans in Kentucky
Type: Fixed-dollar reduction
Kentucky has no separate disabled-veteran property tax exemption; a service-connected totally disabled veteran qualifies for the same constitutional homestead exemption as anyone 65+ or totally disabled, which exempts $49,100 of assessed value for the 2025-2026 assessment years.
| VA disability rating / category | What you get |
|---|---|
| Totally disabled (service-connected) | $49,100 deducted from assessed value for 2025-2026 (inflation-adjusted every two years); applied once, no annual reapplication for service-connected totally disabled veterans.Must be classified as totally disabled under a U.S. government program (the VA) and receiving disability payments for the entire taxation period; own/occupy as primary residence as of Jan 1; file Form 62A350 with the county PVA. A 100% VA rating satisfies 'totally disabled.' |
| Below 100% / partial VA rating | No exemption on the basis of the VA rating alone.A partial rating does not meet the 'totally disabled' standard. There is NO graduated/tiered veteran exemption in current Kentucky law. |
- Income limit: None
- Age requirement: None for the disability path; alternatively available at 65+.
- Surviving spouse: No veteran-specific surviving-spouse exemption; spouse continues only if independently qualifying (65+ or totally disabled).
- Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA
Source: Ky. Const. § 170; KRS 132.810 and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Kentucky 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 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.