Updated January 2026
New Jersey Veteran Benefits 2026
New Jersey offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in NJ for 2026.
New Jersey Highlights
- Full military retirement pay tax exemption
- Full property tax exemption for 100% P&T
- Free NJ Turnpike transponder
- Civil service preference for veterans
Income Tax Treatment
New Jersey has a state income tax.
Military Retirement Pay: New Jersey fully exempts military retirement pay from state income tax.
Active Duty Pay: Active duty pay is fully exempt from New Jersey income tax.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. New Jersey does not tax VA disability payments.
Property Tax Exemption for Veterans
100% P&T disabled veterans receive full property tax exemption. Veterans with lower ratings get $250 deduction.
Maximum Benefit: Full exemption for 100% P&T
To apply for property tax exemptions in New Jersey, contact your county assessor's office or the New Jersey Department of Veterans Affairs. You will typically need your VA disability rating letter and proof of residence.
VA Healthcare in New Jersey
New Jersey 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.