Updated January 2026
New York Veteran Benefits 2026
New York offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in NY for 2026.
New York Highlights
- Full military retirement pay tax exemption
- Graduated property tax exemptions for veterans
- Free college tuition at SUNY/CUNY for eligible veterans
- New York Veterans Halls of Honor
Income Tax Treatment
New York has a state income tax.
Military Retirement Pay: New York fully exempts military retirement pay from state income tax.
Active Duty Pay: Active duty pay earned outside New York is exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. New York does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in New York
Type: Graduated by disability rating
New York offers three locality-optional partial exemptions (Alternative Veterans, Cold War Veterans, Eligible Funds). The disability-rating benefit is an ADD-ON within the Alternative and Cold War exemptions equal to one-half of the veteran's service-connected disability rating (applied to assessed value, then capped by locality-set maximum dollar limits). The Alternative exemption also gives 15% of assessed value for wartime service and an additional 10% for combat-zone service. A separate NEW full exemption for veterans with a 100% service-connected disability was created by Chapter 672 of the Laws of 2025 (amended by Chapter 77 of 2026) but does not take effect until assessment rolls with taxable status dates on or after October 1, 2026.
| VA disability rating / category | What you get |
|---|---|
| Wartime service (Alternative Veterans Exemption) | 15% reduction of assessed value, subject to a locality-set maximum dollar limit.Served during a designated period of war or received an expeditionary medal; primary residence; locality must have adopted the exemption (county/city/town/village/school district options vary). |
| Combat-zone service add-on (Alternative) | Additional 10% reduction of assessed value, subject to locality-set max.Served in a combat zone (proof of combat medal/expeditionary medal); stacks on the 15% wartime reduction. |
| Service-connected disability add-on (Alternative AND Cold War) | Additional reduction of assessed value equal to ONE-HALF of the veteran's service-connected disability rating percentage (e.g., a 60% rating = 30% additional reduction), subject to locality-set maximum dollar limit. No time limit on the Cold War disability add-on.Documented VA service-connected disability rating; applied on top of the base wartime/Cold War reduction. |
| Cold War service base (Cold War Veterans Exemption) | 10% or 15% of assessed value (locality choice), generally limited to 10 years unless the locality removes the limit, plus the disability add-on above.Active duty (other than training) Sept 2, 1945-Dec 26, 1991; primary residence; locality adopted. |
| Eligible Funds Exemption (not disability-based) | Partial exemption equal to eligible funds used to buy the home, generally up to a maximum of $7,500.Home purchased with pension, bonus, insurance, POW compensation, or mustering-out pay. Mutually exclusive with Alternative in most cases. |
| 100% service-connected disability (NEW full exemption, Ch. 672 L.2025) | New exemption for veterans rated 100% service-connected disabled (or individually unemployable); covers general property taxes and special district charges/levies.NOT YET EFFECTIVE — applies to assessment rolls with taxable status dates on or after Oct 1, 2026. Honorable discharge; 100% VA rating or TDIU. Application forms forthcoming. |
- Income limit: No income limit for the Alternative, Cold War, or Eligible Funds exemptions. (A separate, unrelated senior exemption under RPTL 467 has income limits.)
- Age requirement: None.
- Surviving spouse: Eligible. Title may be held by the veteran, spouse, or unremarried surviving spouse (also Gold Star Parent where the locality allows). Unremarried surviving spouse may continue the exemption.
- Counts being paid at 100% via unemployability (TDIU)? Yes — being paid at the 100% rate via Individual Unemployability (TDIU) qualifies
Source: N.Y. Real Property Tax Law sec. 458-a (Alternative Veterans), sec. 458-b (Cold War Veterans), sec. 458 (Eligible Funds); new 100% exemption per Ch. 672 L.2025 / Ch. 77 L.2026. and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the New York 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 York
New York has approximately 5 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.