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 Disabled Veterans in New Jersey
Type: Full exemption at 100%
New Jersey grants a 100% (full) exemption from local property tax on the principal residence of a veteran certified by the VA as 100% permanently and totally disabled from a service-connected disability. There is no income limit, no home-value cap, and no expiration. The wartime-service requirement was eliminated by constitutional amendment effective Dec 4, 2020, so peacetime service now qualifies. A separate, much smaller $250 annual veteran property-tax DEDUCTION (baseline) also exists and is distinct from this full exemption.
| VA disability rating / category | What you get |
|---|---|
| 100% permanent & total service-connected disability (P&T) | FULL exemption — $0 property tax on the principal residenceVA certification of 100% permanent and total service-connected disability; active-duty service and honorable discharge; NJ resident owner-occupant. No income or value limit. |
| 100% via Individual Unemployability (TDIU) at the 100% rate | FULL exemption (where VA certifies the equivalent of 100% P&T)Eligibility hinges on the VA's certification being read as 100% P&T; practitioner guidance indicates IU at the 100% rate qualifies, but confirm with the assessor/Division of Taxation. |
| Baseline: any honorably discharged veteran (active-duty service) — $250 deduction | $250 annual deduction from the property tax bill (not the full exemption)Wartime service no longer required (post-Dec 3, 2020). Listed for contrast; not the disability benefit. |
- Income limit: None for the full disabled-veteran exemption.
- Age requirement: None.
- Surviving spouse: Yes — the unremarried surviving spouse/civil-union/domestic partner retains the full exemption on the same property under the same terms, if a NJ resident owner-occupant who has not remarried/re-partnered.
- Counts being paid at 100% via unemployability (TDIU)? Yes — being paid at the 100% rate via Individual Unemployability (TDIU) qualifies
Source: N.J.S.A. 54:4-3.30 (full disabled-veteran exemption); N.J.S.A. 54:4-8.10 et seq. ($250 deduction) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the New Jersey 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 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.