Updated August 2026

North Carolina Veteran Benefits 2026

Bragg, Lejeune, Cherry Point — nobody hosts more of the force than the Old North State.

North Carolina is one of America’s great military states, and its benefits reflect it — on plates, licenses, and scholarships. Verified against North Carolina statutes and agencies, claim by claim.

North Carolina Highlights

Full military retirement pay tax exemption
$45,000 homestead property tax exclusion for 100% P&T disabled veterans
Free annual registration & Disabled Veteran plate for 100% disabled veterans (car and motorcycle)
No annual vehicle property tax on VA-adapted or VA-gift vehicles
$100 lifetime hunting & fishing license at 50%+ disability; most state parks free to enter
Eight-semester scholarship for children of certain wartime veterans
NC National Guard tuition assistance (NCTAP)

Linn Cove Viaduct curving along Grandfather Mountain amid fall foliage on the Blue Ridge Parkway, North Carolina — Linn Cove Viaduct, Blue Ridge Parkway, in autumn. Matthew Trudeau Photography

Income Tax Treatment

North Carolina has a state income tax.

Military Retirement Pay: Since 2021, North Carolina fully exempts military retirement pay for retirees who served at least 20 years or were medically retired — essentially all military pension recipients.

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 Disabled Veterans in North Carolina

Type: Assessed-value exclusion

North Carolina provides a disabled-veteran homestead 'exclusion' that removes the first $45,000 of the appraised/assessed value of a permanent residence owned and occupied by a qualifying veteran (or unremarried surviving spouse). It requires a 100% permanent and total (P&T) service-connected disability OR receipt of specially adapted housing benefits under 38 U.S.C. 2101 — there are no graduated tiers below that and NO income limit. A 2025 bill (SB 660, 'Honoring Sacrifice: NC Veterans Relief Act') proposed raising the exclusion to $75,000 (2025), $125,000 (2026), and the lesser of $500,000 or 100% of value (2027), but as of June 2026 that bill was still in committee and NOT enacted; the current exclusion remains $45,000.

VA disability rating / category	What you get
100% permanent and total (P&T) service-connected disability, OR 38 U.S.C. 2101 specially adapted housing benefit	Exclude the first $45,000 of the appraised value of the permanent residence from taxation.Honorable (or under honorable conditions) discharge; veteran owns and occupies the residence; must be P&T (100% schedular alone may not qualify unless rated permanent and total). File Forms AV-9 and NCDVA-9 by June 1.

Income limit: None for the disabled-veteran exclusion.
Age requirement: None.
Surviving spouse: Eligible. An unremarried surviving spouse qualifies if the deceased veteran had the qualifying P&T disability or 38 U.S.C. 2101 benefit, OR if the veteran died as a result of a service-connected condition.
Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA

Recent change: No enacted change to the amount. SB 660 (2025-2026 session, 'Honoring Sacrifice: NC Veterans Relief Act') would phase the exclusion to $75,000 / $125,000 / lesser of $500,000 or full value and add a prequalification process and a 100%-disabled-veteran vehicle exemption — but it was referred to committee (Mar 26, 2025) and had NOT become a Session Law as of June 2026. Treat the increases as PROPOSED ONLY.

Source: N.C. Gen. Stat. sec. 105-277.1C (Disabled Veteran Property Tax Homestead Exclusion). and a second official source. Verified June 2026 against primary sources.

To apply, contact your county assessor's office or the North Carolina 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.

Check your exemption by rating & state →

Vehicle & Registration Benefits

No annual vehicle property tax on VA-adapted vehicles: North Carolina counties tax registered motor vehicles as personal property every year, but state law removes two categories of veterans’ vehicles from the tax base entirely. Under G.S. 105-275(5a), a motor vehicle owned by a disabled veteran that is “altered with special equipment to accommodate a service-connected disability” is excluded from property tax. The statute defines a disabled veteran by reference to 38 U.S.C. § 101(2) as one entitled to VA adaptive automobile equipment for a service-connected disability under 38 U.S.C. § 3901 — the trigger is the VA adaptive-equipment entitlement, not a separate North Carolina rating threshold. Subdivision (5) of the same statute also excludes vehicles that the United States government gives to veterans on account of disabilities they suffered in World War II, the Korean Conflict, or the Vietnam Era.

Highway-use tax — no veteran exemption: North Carolina collects a highway-use tax when a certificate of title is issued, and unlike some states there is no disabled-veteran or VA-automobile-grant exemption: the exemption list in G.S. 105-187.6 contains no veteran provision, and NCDMV’s services for military personnel page states that military personnel are not exempt from the highway-use tax. Budget for it even at a 100% rating.

Free registration for 100% disabled veterans: Under G.S. 20-79.7(a)(2), NCDMV must annually issue the 100% Disabled Veteran registration plate free of charge — one plate for a motor vehicle and one for a motorcycle — to a qualifying veteran. The plate, and with it the annual registration, is free for vehicles with a registered weight of 6,000 pounds or less; regular G.S. 20-88 fees apply above that weight. The plate is issuable under G.S. 20-79.4(b) to a veteran of the U.S. Armed Forces “who suffered a 100% service-connected disability.” Ex-Prisoner of War, Silver Star, Legion of Valor, and Bronze Star Valor (the Bronze Star Medal for valor in combat) plates are issued free of charge under the same subsection.

Other military plates — no special-plate fee: The Partially Disabled Veteran plate (for a service-connected disability of less than 100%), Purple Heart Recipient, Bronze Star Recipient, Silver Star Recipient, Prisoner of War, Gold Star Lapel Button, Military Veteran, and Military Wartime Veteran plates all carry an additional special-plate fee of “None” in the G.S. 20-79.7(a1) fee table — you pay only the regular registration fee. Apply with NCDMV form MVR-33A. Veterans discharged honorably can also add a free “VETERAN” designation to a North Carolina driver license or ID card by presenting discharge documentation (DD-214) at a driver license office.

Recreation: Parks, Hunting & Fishing

State parks — free entry for everyone, discounts where fees exist: Most North Carolina state parks are free to enter year-round for all visitors — no veteran pass is required. The exceptions are Chimney Rock (an attraction operated by a private concessionaire) and seasonal per-vehicle entrance fees at the Falls Lake, Jordan Lake, and Kerr Lake state recreation areas: $10 per vehicle on weekends and holidays in April, May, and September, and daily from Memorial Day through Labor Day. At those three lakes, veterans, active-duty military, and seniors 62 and older pay a discounted $5 per vehicle. Details are on the NC State Parks rates and activity fees page.

$6-per-night camping discount: NC State Parks gives veterans, active-duty military, and seniors 62 and older a $6 discount per night on tent/trailer/RV campsites and camper cabins (primitive and group campsites, vacation cabins, and facility rentals are excluded). A valid ID with birthdate or proof of military service or veteran status is required at check-in.

$100 lifetime hunting & fishing license — 50%+ disabled resident veterans: Under G.S. 113-270.1D(b)(7), the Resident Disabled Veteran Lifetime Sportsman License costs $100 — versus $500 for the standard Adult Resident Lifetime Sportsman License — and is issued to a North Carolina resident who is a fifty percent (50%) or more disabled veteran as determined by the U.S. Department of Veterans Affairs. It is valid for life (even if you later leave the state) and covers taking all wild animals and wild birds by lawful methods except trapping, in all open seasons, plus hook-and-line fishing in all inland and joint waters including public mountain trout waters — coastal saltwater fishing is not included. VA disability certification must be submitted with the application; see the NC Wildlife Resources Commission disabled licenses page.

Totally disabled residents: A parallel Resident Totally Disabled Lifetime Sportsman License, also $100 under G.S. 113-270.1D(b)(8), is available to a North Carolina resident who is totally and permanently disabled as determined by the Social Security Administration or under Wildlife Resources Commission rules (the Commission also recognizes Civil Service Retirement, Railroad Retirement Board, and N.C. State Retirement System determinations) — a route for veterans who are SSA-disabled but rated below 50% by the VA.

Education & Other North Carolina Benefits

NC Scholarship for Children of Wartime Veterans: The N.C. Department of Military & Veterans Affairs awards a scholarship of eight academic semesters (which must be used within eight years) to children of certain deceased, disabled, combat, or POW/MIA wartime veterans. Awards are grouped into classes (I-A, I-B, II, III, and IV) based on the veteran’s status, and the veteran’s qualifying condition must have occurred during a period of war. The applicant must be under age 25 at the time of application and domiciled in North Carolina, and either the veteran was a North Carolina resident at enlistment or the child was born in North Carolina and has lived in the state continuously. Annual application deadlines apply and differ by class — details and the online application are on the DMVA scholarships page and the scholarship application portal.

NC National Guard Tuition Assistance Program (NCTAP): NCTAP is a tuition-reimbursement program for actively drilling members of the North Carolina Army and Air National Guard, usable at approved schools within North Carolina — application windows, eligibility rules, and the vendor list are on the NC National Guard NCTAP page.

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.

Official North Carolina Veterans Resources

Frequently Asked Questions

Does North Carolina tax military retirement pay?

Since 2021, North Carolina fully exempts military retirement pay for retirees who served at least 20 years or were medically retired — essentially all military pension recipients.

Does North Carolina offer property tax exemptions for disabled veterans?

Does North Carolina have a state income tax?

North Carolina has a state income tax. Since 2021, North Carolina fully exempts military retirement pay for retirees who served at least 20 years or were medically retired — essentially all military pension recipients.

Do disabled veterans pay vehicle taxes and registration fees in North Carolina?

Partly. A motor vehicle owned by a disabled veteran and altered with special equipment to accommodate a service-connected disability is excluded from North Carolina's annual vehicle property tax under G.S. 105-275(5a), and vehicles given to veterans by the U.S. government on account of World War II, Korean Conflict, or Vietnam Era disabilities are excluded under G.S. 105-275(5). A veteran with a 100 percent service-connected disability also receives the Disabled Veteran registration plate free of charge each year — one plate for a motor vehicle and one for a motorcycle — with no registration fee for vehicles with a registered weight of 6,000 pounds or less (G.S. 20-79.7). However, North Carolina has no disabled-veteran exemption from the highway-use tax collected when a vehicle title is issued; the exemption list in G.S. 105-187.6 contains no veteran provision.

Do disabled veterans get discounted hunting and fishing licenses in North Carolina?

Yes. Under G.S. 113-270.1D(b)(7), a North Carolina resident who is a 50 percent or more disabled veteran, as determined by the U.S. Department of Veterans Affairs, can buy the Resident Disabled Veteran Lifetime Sportsman License for $100, compared with $500 for the standard Adult Resident Lifetime Sportsman License. It covers hunting of all wild animals and birds by lawful methods except trapping, in all open seasons, plus inland hook-and-line fishing including public mountain trout waters, but not coastal fishing. Residents who are totally and permanently disabled per the Social Security Administration qualify for the $100 Resident Totally Disabled Lifetime Sportsman License under G.S. 113-270.1D(b)(8).

Do veterans get free admission to North Carolina state parks?

Most North Carolina state parks are free to enter year-round for everyone. At the three fee-charging state recreation areas — Falls Lake, Jordan Lake, and Kerr Lake — veterans, active-duty military, and seniors 62 and older pay a discounted $5 per-vehicle entrance fee instead of $10 during fee season. NC State Parks also gives veterans, active-duty military, and seniors 62 and older a $6-per-night discount on tent, trailer, and RV campsites and camper cabins, with proof of veteran status or military service required at check-in.