Updated January 2026
Tennessee Veteran Benefits 2026
Tennessee offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in TN for 2026.
Tennessee Highlights
- No state income tax
- Full property tax exemption for 100% P&T
- Free hunting and fishing licenses for disabled veterans
- Tennessee Veterans Homes
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 / category | What 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
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.
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.