Illinois Disabled Veteran Benefits

If you are a disabled veteran living in Illinois, or thinking about moving here, this page puts every state-level benefit tied to your VA (U.S. Department of Veterans Affairs) disability rating in one place: the property tax exemptions, state income tax breaks, license plates, parks and hunting/fishing, education for you and your kids, state veterans' homes, hiring preference, and more. Every dollar figure, deadline, and form name below comes from an official Illinois source, and I link that source so you can check it yourself. Where the state's own pages leave a number unsettled, I tell you to confirm it rather than guess.

Plain-language promise: I keep the how-to steps here so you can act. The only thing I route out is filing or increasing a VA claim, because that is free claims work best handled by an accredited Veterans Service Officer (VSO), never a paid company.

The big one in Illinois is the property tax exemption. A veteran with a 70% or higher VA service-connected disability rating gets the first $250,000 of equalized assessed value (EAV) on their home exempted from property tax, which zeroes out the property tax bill on most Illinois homes. This is not automatic, and (unless you are 100% permanent and total) you have to re-file every year. Details and the exact form are in the first section below.

Property tax exemption

What it is: Illinois has four separate veterans property tax programs, all administered by your county Chief County Assessment Office (also called the Supervisor of Assessments), not by the state. You apply locally, and (with one exception for 100% permanent and total veterans) you must re-file each year. The programs reduce your equalized assessed value (EAV), the assessed, equalized value the tax rate is applied to, so a reduction in EAV is a real reduction in your bill.

1) Standard Homestead Exemption for Veterans with Disabilities (SHEVD) — the main one. The size of the EAV reduction is tiered by your VA service-connected disability rating, keyed on the rating the VA certifies:

• 30% to 49% rating: $2,500 reduction in EAV.
• 50% to 69% rating: $5,000 reduction in EAV.
• 70% or higher rating: the first $250,000 of EAV is exempt from property tax. For most Illinois homes this eliminates the property-tax bill on the primary residence entirely (a $250,000 EAV corresponds to roughly a $750,000 market-value home, since Illinois assesses at about one-third of market value outside Cook County).

Who qualifies for SHEVD: you must be an Illinois resident who served in the U.S. Armed Forces (active or state active duty), Illinois National Guard, or U.S. Reserve Forces; own and occupy the home as your primary residence (and be liable for the taxes) as of January 1 of the assessment year; and have at least a 30% service-connected disability certified by the VA. Separately, beginning in tax year 2024, WWII veterans qualify regardless of any disability rating; confirm with your assessor if that is you.

The full-exemption routes, spelled out. Illinois does not have a single "100% disabled = no property tax" statute; instead these are the routes that reach a full or near-full exemption, and exactly what each keys on:

• Route 1 — a 70%-or-higher rating (near-total for most homes). As above, the first $250,000 of EAV is exempt. This is the practical "full exemption" for the vast majority of Illinois homes. It keys on the rating percentage being 70% or more — a 70%, 80%, 90%, or 100% schedular rating all qualify at this top tier, as does a 100% rate paid through Individual Unemployability (IU / TDIU) once the VA certifies the disability at the required level. If your VA paperwork shows you paid at the 100% rate, bring it; the assessor keys on the VA-certified service-connected percentage.
• Route 2 — surviving spouse, full 100% EAV reduction. An un-remarried surviving spouse of a veteran killed in the line of duty gets a 100% reduction in EAV on the primary residence (tax year 2015 and later), even if the veteran never had the exemption. Beginning tax year 2023, an un-remarried surviving spouse of a veteran whose death the VA determined to be service-connected, and who is certified by the VA as a recipient of Dependency and Indemnity Compensation (DIC), may also qualify even if the veteran never had it. A surviving spouse of a veteran who did have SHEVD can also continue the existing exemption or transfer it to a new Illinois primary residence.
• Route 3 — specially adapted housing (separate program, below). Up to a $100,000 EAV reduction for a home bought or built with federal adaptive-housing funds.

2) Specially Adapted Housing Exemption for Veterans with Disabilities. A separate exemption of up to a $100,000 reduction in assessed value for a home (including a mobile home) that was purchased or constructed with federal funds specifically for adaptive housing for the disability. It continues as long as the veteran, the spouse, or the unmarried surviving spouse lives there. You cannot combine it with the SHEVD or the general homestead-exemption-for-persons-with-disabilities in the same tax year.

3) Returning Veterans' Homestead Exemption. A $5,000 reduction in EAV for the taxable year in which you return from active duty in an armed conflict, and (for returns in 2010 and later) also for the following taxable year; it is available again each time you return from a later qualifying deployment. Filed on Form PTAX-341 (PDF).

The forms and the annual-renewal trap: the SHEVD is applied for on Form PTAX-342, Application for Standard Homestead Exemption for Veterans with Disabilities (PDF) (the official state form, available from your county assessment office). Then, in most counties you must re-verify every year on Form PTAX-342-R, Annual Verification of Eligibility (PDF), or the exemption can be terminated. One exception: a veteran certified by the VA as 100% permanent and total generally does not have to re-file the annual verification — confirm this with your county assessor, since counties administer it. Deadlines are set by each county (commonly around March/April), so ask yours for the exact date.

1. Find your county Chief County Assessment Office / Supervisor of Assessments (search "[your county] IL supervisor of assessments veterans exemption"). They administer this, not the state.
2. Tell them your VA rating, whether the VA has certified you 100% permanent and total, and how you financed the home (regular purchase vs. a federal adaptive-housing grant). Ask which exemption nets you the most.
3. File Form PTAX-342 for the SHEVD, attaching your VA disability-rating certification letter and, if asked, your discharge document (DD Form 214). File by your county's deadline.
4. Ask specifically: "Do I have to re-file the PTAX-342-R annual verification every year, or am I exempt from that because I'm 100% permanent and total?" Put a reminder on your calendar either way.
5. If a spouse is applying after the veteran's death, ask about the surviving-spouse routes (line-of-duty death = 100% EAV reduction; service-connected death with DIC certification; or continuing/transferring an existing SHEVD).
6. Confirm it posted by checking your next tax bill for the exemption line, or call the assessor a few weeks after filing.

Sources property tax exemption guide · veterans property tax relief · the SHEVD statute · the adaptive-housing statute · the returning-veterans statute

State income tax

What it is: Illinois has a flat 4.95% individual income tax, but it does not tax your VA disability compensation, and it fully removes military pay and military retirement pay from the Illinois return.

• VA disability compensation is federally tax-free, and Illinois follows the federal treatment — it is not part of your federal adjusted gross income (AGI), which is the starting point for the Illinois return, so it never becomes Illinois taxable income.
• Military retirement pay is fully subtracted on the Illinois return (Line 5 of Form IL-1040), because Illinois excludes federally-taxed government/military retirement and disability-plan income. Survivor Benefit Plan (SBP) annuities are treated the same way.
• Active-duty military pay that is included in your federal AGI is subtracted from Illinois income on Schedule M (PDF).

1. Confirm your VA disability compensation never appears as income on your Illinois return (it should not appear on your federal return either, and Illinois starts from your federal figures).
2. If you receive military retirement pay or SBP, subtract it on Line 5 of the current-year IL-1040; check the current state retirement-income guide for the exact mechanics, since form layouts change.
3. If you are active or reserve and have military pay in your federal AGI, subtract it on Schedule M. If a prior return taxed any of this, fix it with a preparer familiar with military filings — that is a filing mechanic, not claims work.

Sources military filing rules · retirement income guide · subtracting military retirement Q&A · Schedule M instructions · military pay Q&A

Vehicles, plates & tolls

What it is: the Illinois Secretary of State (SOS) issues special veteran license plates and waives the registration fee on the first set for disabled veterans. There are two main plate tracks depending on your rating and whether your disability qualifies you for disability parking.

• Service-Connected Disabled Veteran (ISERVE) plates: issued at no cost for the first set to any veteran with a VA service-connected disability rating of 50% or more whose disability does not otherwise qualify them for a persons-with-disabilities plate/placard. The first set is issued without the standard registration fee (cited by the SOS as $151 — confirm the current fee, since DMV fees change). You provide a VA letter verifying the 50%-or-greater service-connected rating.
• Disabled Veteran (DV) plates: for a veteran with a military service-connected disability certified by a licensed physician who also qualifies for a disabled-parking plate/placard; the first set's registration fee is waived, and the plates carry the persons-with-disabilities parking privilege (you may use accessible spaces). Documentation typically includes a VA disability-rating letter, physician certification, and a DD Form 214.
• Tolls: Illinois does not publish a general disabled-veteran toll waiver on the Illinois Tollway. If you use a wheelchair-adapted vehicle you may qualify for a separate disability-based toll exemption program — ask the Illinois Tollway directly rather than assuming a veteran-specific discount exists.

1. Get your VA letter stating your service-connected rating (50%+ for ISERVE). If your disability also affects mobility, ask your physician about certifying you for the DV plate so you also get disability parking.
2. Apply through the Illinois Secretary of State (a facility visit or the SOS military plate process). Confirm at the counter that the registration fee on your first set is waived before you pay.
3. If you have a wheelchair-adapted vehicle and want a toll exemption, contact the Illinois Tollway to ask whether you qualify for its disability toll-exemption program.

Sources ISERVE plates (Secretary of State) · DV plates (Secretary of State)

Recreation: parks, hunting & fishing

What it is: free hunting and fishing licenses for disabled veterans, and free camping and admission at Illinois state parks, run through the Illinois Dept. of Veterans' Affairs (IDVA) and the Illinois Dept. of Natural Resources (DNR).

• Free hunting & fishing licenses: free to any veteran with a service-connected disability compensation rating of 10% or greater, or who is receiving a total disability pension. You need your DD Form 214, a Disability Affidavit issued by IDVA, and current VA verification of your compensation or pension. The benefit applies regardless of your state of residence, but you must carry the affidavit when you hunt or fish.
• Free state-park camping & admission: Illinois disabled veterans and former prisoners of war (POWs) who are state residents may camp and enter DNR sites free of charge. Documentation is required, obtained through your local IDVA Veteran Service Office. The official IDVA page does not spell out coverage for accompanying family, so confirm with the IDVA office or the specific park whether your spouse and children are covered on your pass.

1. Visit a local IDVA Veteran Service Office with your DD-214 and VA rating/pension letter to get the IDVA Disability Affidavit (for licenses) and the camping/admission certification.
2. For hunting/fishing, present the affidavit when you obtain your license and carry it in the field.
3. For camping, confirm with the office or park whether family members traveling with you are covered before you rely on it.

Sources hunting & fishing permits (IDVA)

Education for you & your family

What it is: Illinois's marquee education benefit for the families of severely disabled or deceased veterans is a full-tuition scholarship at state schools, plus a small annual grant for school-age children. Both are keyed on the veteran being 100% permanent and total (including through unemployability), MIA, a POW, or having died of service-connected causes.

• Deceased, Disabled, and MIA/POW Veterans' Dependents Scholarship: pays full tuition and mandatory fees at any Illinois state-supported college or university for the veteran's spouse or child (natural, step-, adopted, or minor under court-ordered guardianship). It covers a period equivalent to 4 years of full-time enrollment (measured as up to 120 semester-hour points, including summer terms) and expires 12 years from first enrollment. The qualifying veteran must be an Illinois resident (per the residency rules) who: is MIA; was a POW; is rated by the VA 100% permanently and totally disabled from service-connected causes; is rated 100% permanently and totally disabled due to individual unemployability (IU) from service-connected causes; or died of service-connected causes. Apply online at the Illinois Student Assistance Commission (ISAC) Student Portal.
• Deceased, Disabled, and MIA/POW Veterans' Dependents Educational Opportunity Grant: a $250 grant per year for each eligible child ages 10 to 18 of a qualifying veteran (same underlying eligibility as the scholarship above).
• IDVA maintains a broader education hub covering additional state and federal programs for Illinois veterans and dependents.

1. Confirm the veteran meets one of the qualifying conditions — most commonly a VA rating of 100% permanent and total (schedular or through individual unemployability) for service-connected causes.
2. For a spouse or college-age child, apply for the full-tuition scholarship at the ISAC Student Portal and upload the required VA and service documentation.
3. For a child aged 10-18, apply separately for the $250 Educational Opportunity Grant through IDVA.
4. Coordinate with the school's financial-aid office so the award applies against actual tuition owed.

Sources dependents scholarship · children's education grant · IDVA education hub

State Veterans' Homes & long-term care

What it is: Illinois operates five state veterans' homes offering domiciliary (independent-style) living and skilled nursing care to Illinois veterans and eligible spouses.

• The five homes are Anna, Chicago, LaSalle, Manteno, and Quincy (Quincy is the largest and oldest, established 1886). Skilled nursing care is available at all five; the Anna and Quincy homes also offer domiciliary/independent living and take qualifying spouses.
• Who's eligible: Illinois veterans (and eligible spouses at the homes that admit them). Ask the specific home's admissions office about care level, residency, and cost. For higher-rated disabled veterans, the federal VA often pays the state home a per-diem toward skilled-nursing care — confirm your specific out-of-pocket cost with the home given your VA rating.
• Federal VA healthcare (VA medical centers and clinics in Illinois) is handled through the VA, not the state; consult VA.gov or a VSO for enrollment help.

1. Pick the closest home from the IDVA homes directory.
2. Call that home's admissions office, ask for the application and physician's-statement packet, and confirm your specific cost given your VA rating.
3. Have your DD Form 214 and VA rating letter ready to submit.

Sources homes directory · Manteno · LaSalle · Chicago · Quincy

State hiring & civil service

What it is: Illinois gives veterans preference in state hiring, administered through the Dept. of Central Management Services (CMS) Veterans Outreach Program, with disabled veterans receiving the strongest preference.

• State employment veterans preference: qualified veterans receive additional preference points added to their score in the state hiring sequence, with disabled veterans and Purple Heart recipients weighted the most. To qualify you generally need at least 6 months of active-duty service (Army, Air Force, Coast Guard, Navy, Marine Corps) or 6 months in the Illinois National Guard or Reserve, and an honorable discharge. You submit certified documentation (DD-214, VA rating letter) to CMS for verification before points are applied.
• Spouse / parent preference: preference can extend to the spouse of a veteran whose service-connected disability prevents the veteran from qualifying for state employment, the un-remarried surviving spouse of a veteran whose death was service-connected, or a parent of an unmarried veteran with a service-connected death or disqualifying disability.
• Local (municipal) civil service: Illinois law also gives qualifying veterans preference on municipal civil-service exams; the exact point formula is set by the municipal civil service statute, so confirm the local rule with the municipality you're applying to.

1. When you apply for a State of Illinois job, claim veteran status and follow the CMS steps to get your documents certified.
2. Submit your certified DD-214 and VA rating letter to the CMS Veterans Outreach Program — call (800) 643-8138 or (217) 524-1313, or email [email protected] — so your points apply to future applications.
3. If a spouse or parent may qualify for derived preference, review the spouse/parent preference page.

Sources Veterans Outreach Program · spouse & parent preference points

Other: housing grant, burial, veteran business

What it is: a handful of smaller but valuable IDVA programs — a state adaptive-housing grant on top of the federal one, burial help, and veteran-business support.

• State Specially Adapted Housing assistance: Illinois provides financial assistance, in addition to the federal Specially Adapted Housing (SAH) grant, to acquire or remodel a suitable adapted home for a permanent-and-total service-connected disability. To qualify you must be certified eligible by the VA for the federal SAH grant and generally must have been an Illinois resident when you entered service. Secondary summaries cite a state lump sum of up to $15,000 for acquisition and up to about $3,000 for remodeling — confirm the current dollar amounts directly with IDVA, as the official IDVA page describes the program without publishing those figures. A related mobile-home tax exemption is available to veterans who received an SAH grant and meet ownership/residency rules.
• Burial assistance: when the federal VA furnishes a headstone or grave marker, IDVA offers a reimbursement (cited as up to $125 — confirm the current amount with IDVA) toward transporting and/or setting the marker in Illinois. Separately, County Veterans Assistance Commissions provide burial assistance for honorably discharged indigent veterans and immediate family who lack funds for funeral expenses.
• Veteran-owned business: Illinois offers a state procurement preference/set-aside for certified veteran-owned small businesses through CMS's Business Enterprise Program. Verify the current certification process and set-aside percentage with CMS before relying on it.

1. If you have (or qualify for) the federal VA Specially Adapted Housing grant, contact IDVA to ask about the state housing assistance and get the current dollar figures in writing.
2. For a marker-setting reimbursement, ask IDVA; for an indigent-veteran funeral, contact your County Veterans Assistance Commission.
3. If you own or want to start a business, ask CMS about veteran-owned business certification and the state procurement preference.

Sources IDVA housing assistance · IDVA services & benefits

Who to call

The Illinois Dept. of Veterans' Affairs (IDVA) is your single front door for the programs above, and it employs the free accredited Veteran Service Officers (VSOs) who help with a VA claim, a rating, or applying for any of these benefits.

• Website: veterans.illinois.gov
• Contact IDVA: Contact Us — Illinois Dept. of Veterans' Affairs
• Find a free accredited County Veteran Service Officer: IDVA VSO Locator by County
• Property tax questions: your county Chief County Assessment Office / Supervisor of Assessments (they administer the exemptions) and Illinois Dept. of Revenue — Property Tax Relief for Veterans

1. Anything tied to your actual VA rating — filing a new claim, appealing, or arguing for a higher percentage — goes to a free accredited VSO. Find one through the IDVA VSO locator or at VA.gov. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, parks, education, homes, hiring) go to the specific office linked in that section, or start at veterans.illinois.gov.

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