Updated August 2026

Tennessee Veteran Benefits 2026

They call it the Volunteer State because its people answered the call — and Tennessee remembers.

Tennessee’s nickname was earned by soldiers, and its benefits honor that — free plates, ten-dollar lifetime licenses, and no income tax at all. Every claim below is verified against Tennessee code and agencies.

Tennessee Highlights

  • No state income tax
  • Property tax relief for 100% P&T disabled veterans — state reimburses tax on the first $175,000 of home value
  • Free Disabled Veteran plate and county wheel-tax exemption at 100% P&T
  • $10 one-time lifetime hunting & fishing license at 100% P&T or 30%+ wartime disability
  • Free entry to all state parks; 50% year-round camping & cabin discount at 100% disability
  • Helping Heroes Grant and Tennessee State Veterans Homes
Misty blue ridges of the Great Smoky Mountains stretching to the horizon, seen from Clingmans Dome
Great Smoky Mountains National Park, view from Clingmans Dome. NPS / Chalice Keith, Great Smoky Mountains National Park

Income Tax Treatment

Tennessee has no state income tax. Tennessee has no state income tax on wages or retirement income, so military retirement pay is not taxed.

This means military retirement pay, active duty pay, and all other income sources are free from state income tax. VA disability compensation is also tax-free at the federal level.

Property Tax Exemption for Disabled Veterans in Tennessee

Type: Income-tax credit (refund)

Tennessee does not grant a property-tax EXEMPTION; it provides property-tax RELIEF — a state reimbursement/rebate. For qualifying disabled veterans the state reimburses property tax on the first $175,000 of the home's full market value (tax year 2025). The veteran still receives and pays the tax bill, then is reimbursed. Eligibility requires a service-connected total & permanent disability (100% P&T) or specific conditions (paraplegia, loss/loss-of-use of 2+ limbs, legal blindness, or 100% P&T from POW status). There is NO income limit for the disabled-VETERAN relief (unlike the elderly/disabled-homeowner relief, which is income-tested).

VA disability rating / categoryWhat you get
Service-connected permanent & total (100% P&T) disability, OR paraplegia / permanent paralysis of both legs, OR loss/loss-of-use of 2+ limbs, OR legal blindness, OR 100% P&T as a former POW State reimburses property tax calculated on the first $175,000 of the property's full market value (2025 tax year). Effective assessed value = 25% of that capped market value, times the local tax rate.Must own and use the property as primary residence. No income limit for the disabled-veteran category. Reapplication/recertification typically required; apply through the county Trustee. Administered by the TN Comptroller (Division of Property Assessments) under Public Chapter authority.
  • Income limit: None for the disabled-veteran relief category (the separate elderly/disabled-homeowner relief is income-limited, but that is a different program).
  • Age requirement: None for the disabled-veteran category.
  • Surviving spouse: An unremarried surviving spouse of a qualified disabled veteran may receive the relief (separate 'Property Tax Relief for Surviving Spouses' program). Surviving spouses of certain disabled veterans and of service members killed in action may also qualify.
  • Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA
Recent change: The market-value cap is periodically raised by the legislature. The cap is $175,000 for tax year 2025. Legislation (e.g., SB 1798 / related 2025-2026 bills) has been advanced to raise the cap to $200,000; reported effective date around July 1, 2026 — VERIFY enactment and exact effective tax year before publishing the $200,000 figure.

Source: TCA Title 67, Chapter 5, Part 7 (Property Tax Relief); program administered per Public Chapter authority (e.g., Public Chapter No. 1065) and a second official source. Verified June 2026 against primary sources.

To apply, contact your county assessor's office or the Tennessee 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

Free Disabled Veteran license plate (100% P&T): Tennessee issues the first Disabled Veteran plate free of charge to veterans whose service-connected disability falls within the parameters of Tenn. Code Ann. § 55-4-256. The Department of Revenue requires a letter from the federal VA verifying that the veteran was rated permanent and totally disabled, with an effective date — a permanent and total rating always means the veteran is compensated at 100 percent. One plate is free; a second plate costs $26.50 a year (initial fee $28.15) and subsequent plates $26.50 a year (initial fee $29.80), in passenger and motorcycle classes. Veterans issued two Disabled Veteran plates before May 19, 2014 are grandfathered and keep both free. Details: Department of Revenue — Disabled Veteran plate and DOR help article VR-13.

County motor vehicle privilege tax (“wheel tax”) exemption: Any veteran with a 100 percent permanent, total disability from a service-connected cause — and any former prisoner of war — as determined by the U.S. Department of Veterans Affairs is exempt from the county motor vehicle privilege tax under Tenn. Code Ann. § 5-8-102(a) & (d). Submit evidence of the disability to the county officer responsible for collecting the tax. The wheel tax is levied county by county, so the dollar value depends on where you register. Source: Tennessee Department of Veterans Services.

Vehicle sales tax — two narrow exemptions, no blanket break: Tennessee's Department of Revenue guidance for disabled veterans covers two specific exemptions, not a general one. First, on an automobile bought with a VA Automobile Grant, the portion of the price in excess of the grant is exempt from sales and use tax — the portion paid with the grant itself is taxable (Tenn. Code Ann. §§ 67-6-314 and 67-6-353; DOR article SUT-85). Second, automobile adaptive equipment necessary for safe operation is exempt from sales and use tax when sold or given to an honorably discharged veteran with a service-connected disability under 38 U.S.C. § 3901; the seller keeps a completed VA Form 10-1394 or 21-4502 (Tenn. Code Ann. § 67-6-353(a); DOR article VTR-36).

Purple Heart & Gold Star Family plates: The first Purple Heart plate is free to medal recipients (DD-214 or pre-1951 equivalent showing the award); disabled-veteran Purple Heart recipients may hold two plates, the first free if chosen as an alternative to the Disabled Veteran plate, with an additional plate at $26.50 a year (initial fee $28.15). The first Gold Star Family plate is also free for a spouse, parent, sibling, or child of a service member who died in the line of duty or from injuries sustained in service (DD Form 1300 Report of Casualty required); additional plates are $26.50 a year (initial fee $29.80).

Recreation: Parks, Hunting & Fishing

Every Tennessee State Park is free to enter — the park system charges no access fee at any park, for anyone, so day use such as hiking and trails costs nothing regardless of veteran status (per the Tennessee State Parks FAQ). The veteran benefits below apply to overnight stays and golf.

Veteran discounts on camping, cabins, lodges & golf: Tennessee-resident veterans get 25% off campsites and cabins from March 1 through November 30 and 50% off December 1 through the end of February, and 25% off lodge rooms year-round (the 50% winter lodge rate applies only at the Lodge at Henry Horton; discounted reservations generally must be made no more than 30 days before arrival; premium sites, rooms, and cabins are excluded), plus 20% off golf green fees and cart rentals and 15% off select gift-shop items year-round. On Veterans Day each year, resident veterans receive one free night of camping and complimentary 18-hole green fees. Bring proof of Tennessee residency plus veteran status (Certificate of Discharge/DD-214, Veterans Benefits Administration benefit card, or retired military card). Details: Tennessee State Parks — Veterans Programs & Benefits and the official discounts page.

50% year-round at 100% disability: Tennessee-resident veterans with a 100% service-connected disability receive a 50% discount on campsites and cabin rentals year-round — not just in the winter window. Show certification from the VA indicating the percentage of service-connected disability along with residency and veteran-status documentation.

$10 lifetime hunting & fishing license for disabled veterans: Tennessee residents who are 100 percent permanently and totally service-connected disabled, or who by reason of service in any war are 30 percent or more disabled, qualify for the permanent Resident Disabled Veteran Hunting & Fishing License (TWRA Type 198) for a one-time $10 fee under Tenn. Code Ann. § 70-2-104(a) — it never has to be renewed. Note it is deeply discounted, not free. Apply by mail, email, or fax using TWRA's Miscellaneous Licenses Application (form WR-0142) with a certification of recent date from the VA (a VA certificate or a DD-214 reflecting the service-connected disability). Source: Tennessee Department of Veterans Services — Hunting and Fishing Licenses.

Education & Other Tennessee Benefits

Helping Heroes Grant: Created by Public Chapter 1142 (2008) and funded through Tennessee's lottery scholarship program, the Helping Heroes Grant helps decorated post-9/11 veterans pay for college in Tennessee. It awards $1,000 per semester to students completing at least 12 semester hours, or $500 at part-time status, contingent on passing the courses, and is available to as many as 375 eligible veterans each year on a first-come, first-served basis. Applicants must have been awarded the Iraq Campaign Medal, Afghanistan Campaign Medal, or Global War on Terrorism Expeditionary Medal. Sources: Tennessee Department of Veterans Services — Helping Heroes Grant and the Tennessee Comptroller's program evaluations.

VA Healthcare in Tennessee

Tennessee has approximately 3 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.

Disclaimer: State benefits can change. This information is current as of early 2026. Verify specific benefits with the Tennessee Department of Veterans Affairs before making financial decisions.

Frequently Asked Questions