Updated January 2026
North Carolina Veteran Benefits 2026
North Carolina offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in NC for 2026.
North Carolina Highlights
- Full military retirement pay exemption
- $45,000 property tax exemption for P&T veterans
- Free specialty license plates
- NC National Guard tuition assistance
Income Tax Treatment
North Carolina has a state income tax.
Military Retirement Pay: North Carolina fully exempts military retirement pay from state income tax (for Bailey Settlement retirees; recent changes expanding).
Active Duty Pay: Active duty pay earned by non-residents stationed in NC is exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. North Carolina does not tax VA disability payments.
Property Tax Exemption for Veterans
100% P&T disabled veterans receive $45,000 property tax exemption.
Maximum Benefit: $45,000 for 100% P&T
To apply for property tax exemptions in North Carolina, contact your county assessor's office or the North Carolina Department of Veterans Affairs. You will typically need your VA disability rating letter and proof of residence.
VA Healthcare in North Carolina
North Carolina has approximately 4 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.