Indiana Disabled Veteran Benefits

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If you are a disabled veteran living in Indiana, 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 break, state income tax rules, license plates and the vehicle excise credit, parks and hunting/fishing, education for you and your kids, the state veterans' home, hiring preference, and burial. Every dollar figure, deadline, and form name below comes from an official Indiana government 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) or your County Veteran Service Officer (CVSO), never a paid company.

Big 2026 change — Indiana just rewrote its disabled-veteran property tax law. Under a new 2026 law, the state restructured the veteran property tax benefit. A veteran with a total (100%) service-connected disability now gets a full deduction of 100% of the assessed value of their principal residence, and the old home-value cap that used to limit the benefit is removed. Veterans with a partial rating get fixed-dollar credits instead (a $350 credit and a $250 credit, described below). Here is the part that can cost you money if you miss it: the changes phase in with the 2026 assessment year (taxes payable in 2027), and the statutory deadline to apply is January 15, 2027 (applications are accepted starting July 1, 2026 — some county auditors ask veterans to bring documentation earlier for smoother processing, but the legal cutoff is January 15, 2027). Older filings do not all carry over automatically — see the property tax section below for exactly which filings auto-convert and which don't. Do not rely on the exact 2027 dollar mechanics from any secondhand summary; confirm your status and filing directly with your county auditor or the Indiana Department of Veterans Affairs (IDVA). Note also: an older eligibility certificate some counties previously required has been discontinued — the Indiana DVA confirms State Form 51186 is no longer used — so the application, both for your current bill and for the 2027 re-registration, is State Form 12662 (linked below).

Sources Indiana DVA — property tax benefits

Property tax exemption

What it is: Indiana gives disabled veterans a property tax break on their principal residence, filed through the county auditor (your CVSO can help you complete and certify the application). What you claim right now, on your current 2026-payable bill, is different from what you'll be able to claim on your 2027-payable bill under the 2026 law rewrite (HEA 1210) described in the note above. Both are spelled out below so you know what to file today and what to plan for.

Your current bill (2026-payable): two older deductions, and you get whichever is bigger, not both.

• $24,960 off your home's assessed value (Indiana Code 6-1.1-12-13) if you served during a recognized wartime period, received an honorable discharge, and have a VA service-connected disability rating of 10% or more. There is no cap on your home's assessed value for this one.
• $14,000 off your home's assessed value (Indiana Code 6-1.1-12-14) if you are totally disabled at any age (a 100% VA rating, or IU/P&T paid at the 100% rate, qualifies) or you are age 62 or older with at least a 10% disability rating — this path does not have to be service-connected. Your home's assessed value must be $240,000 or less to qualify.
• By statute these two do not stack on the same property: your county auditor applies whichever amount is larger, not both. If you qualify for both, tell the auditor so they apply the $24,960 one.

Starting with your 2027-payable bill: a full exemption, or bigger stackable credits. Under HEA 1210 the two deductions above are replaced by:

• Total (100%) service-connected disability — a full ($0) deduction. A veteran gets 100% of the assessed value deducted from their principal place of residence if they have a total disability, served at least 90 days on active duty, received an honorable discharge, and have been an Indiana resident for at least one year, with no home-value cap. What counts as "total disability" is the key question: a 100% schedular rating clearly qualifies. If the VA rates you at the 100% rate through Individual Unemployability (IU/TDIU) or has stamped your rating Permanent and Total (P&T), ask your county auditor or CVSO to confirm in writing that it satisfies the "total disability" standard before you rely on the full deduction.
• $350 credit — for a veteran with wartime service, an honorable discharge, and a VA service-connected disability rating of 10% or more. This is a direct credit against the tax bill, not an assessed-value deduction.
• $250 credit — for a veteran with at least 90 days of service, an honorable discharge, who is age 62 or older, and has a disability rating of at least 10%. The Indiana DVA notes that surviving spouses of those killed in action, who died while serving on active duty, or who died while serving on inactive duty training may qualify for this one.
• The Indiana DVA states these credits are stackable with each other — a veteran who meets both the $350 and $250 tests could get $600 combined. But the credits do not stack with the new full deduction: by statute, if you receive the 100% deduction above, you cannot also claim the $350 or $250 credit. It's the full deduction or the credits, not both.

If you already have one of today's deductions, here's what happens to it — and it's not the same for both:

• If you currently hold the $14,000 deduction (totally disabled/62+), your county auditor is required by statute to automatically move you to the new $250 credit for the 2026 assessment year (2027-payable) — no new application needed for that step. But automatic conversion only reaches the credit, not the new full deduction: if you now qualify for the 100% deduction (because you're totally disabled), you must proactively file a new State Form 12662 to get it — the system will not do that upgrade for you.
• If you currently hold the $24,960 deduction (wartime service), there is no automatic conversion at all. The state guidance only recommends that counties transfer these veterans to the new $350 credit administratively — it is not a legal guarantee. File a new application to be safe.

Home donated by a nonprofit (50%–100% deduction, separate from all of the above): for a home given to the veteran without charge by a tax-exempt organization, the deduction ranges from 50% to 100% of assessed value, matching the veteran's disability rating (a 50% rating = 50% deduction, a 100% rating = 100% deduction), for veterans rated 50% or higher.

Surviving spouse: the Indiana DVA indicates the benefit can carry to a surviving spouse where the veteran met the requirements (and surviving spouses of those killed in action, who died while serving on active duty, or who died while serving on inactive duty training may qualify for the $250 credit). Confirm your specific situation with your county auditor.

1. Find your county auditor's office (or your County Veteran Service Officer) — they administer this, not the state. Use the IDVA "Find Your CVSO" locator.
2. Get your VA rating documentation ready: a VA award/summary letter (or "tax abatement" letter) showing your dates of service, discharge type, and combined service-connected rating. Your CVSO or an accredited officer can certify the eligibility section of the form.
3. Complete State Form 12662 (Application for Tax Deduction for Disabled Veterans and Surviving Spouses): State Form 12662 (PDF) — this is the one form you need, whether you're claiming a current-bill deduction or handling the 2027 re-registration.
4. Because of the 2026 law, ask specifically whether/when you must re-file for the 2026 assessment year (taxes payable 2027) — applications are accepted from July 1, 2026 through the statutory deadline of January 15, 2027 (some auditors ask for documentation earlier). If you currently hold the $14,000 deduction, confirm your county has auto-converted you to the $250 credit and, if you're totally disabled, that you've separately filed for the new full 100% deduction with no value cap — that upgrade is not automatic. If you currently hold the $24,960 deduction, don't assume auto-conversion at all; file fresh.
5. File with the county auditor and confirm it posted by checking your next tax bill for the deduction/credit line, or call the auditor a few weeks after filing.

Sources Indiana DVA — property tax benefits · IDVA benefit forms · DLGF — Veterans' Deductions FAQ

State income tax

What it is: Indiana does not tax your already federally tax-free VA disability compensation, fully exempts military retirement pay, and (starting with 2024) exempts active-duty pay.

• VA disability compensation is not taxed. It is excluded from federal gross income by federal law, and Indiana starts from your federal figures, so it never appears as Indiana income either. (This is the general federal rule, not Indiana-specific.)
• Military retirement pay is deductible in full for Indiana tax purposes — no income cap, no age requirement. This deduction is also available to the veteran's surviving spouse. As of January 1, 2025 it expressly includes retired pay from the U.S. Space Force, the U.S. Public Health Service Commissioned Corps, and the NOAA Commissioned Officer Corps. (A divorced spouse's court-ordered share of the retired pay is not deductible for that spouse.)
• Active-duty military wages are exempt beginning with the 2024 tax year for Indiana-resident regular (active-component) members. Combat-zone pay is already excluded from federal and Indiana income.
• Military survivor's benefits are treated as a separate deductible category — the state's income tax bulletin confirms you can claim a separate deduction for each of military pay, retirement pay, and military survivor's benefits, reported separately. (Confirm the exact treatment of your Survivor Benefit Plan (SBP) payment against the current bulletin.)
• National Guard and reserve pay is deductible for service in the Guard or reserve component (broadened for 2023 and later to all such wages).

1. Confirm your VA disability compensation never appears as income on your Indiana return (it should not appear on your federal return either).
2. If you receive military retirement pay or survivor's benefits, take the deduction on the current Indiana return (Form IT-40, Schedule 2; nonresidents use IT-40PNR, Schedule C) — check the current-year line in the state's income tax bulletin because form layouts change, and enclose your withholding/benefit statements.
3. If a prior return taxed VA compensation or military retirement pay by mistake, fix it with a preparer familiar with military filings or by contacting the Indiana Department of Revenue — this is a filing mechanic, not claims work.

Sources Dept of Revenue income tax bulletin

Vehicles, plates & tolls

What it is: Indiana issues a Disabled Hoosier Veteran license plate for veterans with a qualifying service-connected disability, and offers a motor vehicle excise tax credit for veterans who do not get the property tax deduction.

• Disabled Hoosier Veteran plate — under state law, you qualify if you have a service-connected condition that is one of: loss of sight in both eyes (or permanent vision impairment), loss or permanent loss of use of one or both feet, loss or permanent loss of use of one or both hands, a VA rating for a physical condition that precludes walking without pain or difficulty, or a VA rating of at least 50% disabled where at least 60% of that rating is attributable to a mobility-related disability. You apply through IDVA with a VA certificate confirming eligibility and your VA claim number. The state does not state a specific fee for the disabled-veteran plate — confirm the current plate fee with IDVA or the BMV (for comparison, the general Hoosier Veteran plate is $15, plus $45 if personalized). Note: a plate does not waive your ordinary annual vehicle registration/excise taxes.
• How to apply for the plate: complete the IDVA disabled-veteran plate application (State Form, PDF download) and mail, fax, or deliver it in person to the Indiana DVA, 777 North Meridian Street, Suite 300, Indianapolis. The same application route also covers Purple Heart and Ex-Prisoner of War plates.
• Motor vehicle excise tax credit — for a veteran who does not own property eligible for a disabled-veteran property tax deduction (for example, a veteran who rents), Indiana provides a Vehicle Excise Tax (or Recreational Vehicle Excise Tax) credit equal to the lesser of the vehicle's excise tax liability or $70 per vehicle, for up to two vehicles per registration year. It requires wartime service, an honorable discharge, and a 10% or more service-connected disability rating (shown by a VA pension certificate, compensation award, disability compensation check, or an IDVA-issued certificate of eligibility), plus an affidavit from the county auditor confirming you do not own property eligible for the deduction under Indiana Code 6-1.1-12-13, -14, or -16. File State Form 52870, "Qualified Veteran Excise Tax Credit": State Form 52870 (PDF), with the BMV.
• Tolls: no official Indiana source confirming a disabled-veteran toll waiver (for example, on the Indiana Toll Road) was found. If tolls matter to you, confirm directly with IDVA; do not assume a waiver.

1. Confirm which disability route you meet under the plate law, and get your VA certificate/claim number.
2. Complete the disabled-veteran plate application and submit it to IDVA; ask them the current plate fee before you assume it is free.
3. If you do not get the property tax deduction, ask your county auditor about the excise tax credit (up to $70 per vehicle, up to two vehicles) and the certificate/affidavit you need.

Sources Indiana DVA — veteran license plates · IDVA benefit forms · the excise-tax-credit statute

Recreation: parks, hunting & fishing

What it is: a low-cost annual state-parks pass for disabled-veteran plate holders and deeply discounted hunting/fishing licenses, run through the Indiana Department of Natural Resources (DNR).

• Golden Hoosier Passport — $25 per year for a holder of the Disabled Hoosier Veteran license plate, giving unlimited admission for one calendar year to all Indiana state-owned parks, recreation areas, reservoirs, and forests. It does not cover historic sites, museums, or memorials. Former Prisoners of War receive the passport by mail after their plates are issued. (Confirm the current-year price with DNR, since the general-public passport price differs.)
• Disabled Veteran (DAV) hunting & fishing license — $2.75 for a one-year license or $27.50 for a ten-year license, covering small-game hunting and fishing (excludes special stamps). Eligibility: an Indiana resident who served in the U.S. Armed Forces and has a service-connected disability as determined by the VA, or a Department of Defense disability retirement. The Indiana DVA does not state a minimum disability percentage — confirm whether any minimum applies for your situation.

1. If you hold the Disabled Hoosier Veteran plate, buy the Golden Hoosier Passport ($25/year) online or at a DNR location; former POWs receive it automatically by mail. Questions: DNR at 1-800-622-4931.
2. For the discounted hunting/fishing license, complete State Form 50833 (PDF download) and mail or deliver it to the DNR Customer Service Center, 402 W. Washington St., Indianapolis, IN 46204 (faxed copies are not accepted; include a self-addressed stamped envelope).

Sources Indiana DVA — hunting, fishing & Golden Hoosier Passport

Education for you & your family

What it is: Indiana's marquee education benefit is a tuition and fee exemption for the children of disabled veterans — up to 100% of tuition and regular fees at Indiana public colleges. It is administered through the Indiana Commission for Higher Education (CHE) and reviewed by IDVA.

• Tuition and Fee Exemption for Children of Disabled Veterans — up to 100% of tuition and regularly assessed fees, for up to 124 semester credit-hours, at the undergraduate resident tuition rate at Indiana public colleges/universities, usable over 8 academic years.
  • Read the amount rule carefully — it depends on when the veteran parent enlisted: if the veteran parent enlisted before July 1, 2011, the child gets the full 100%. If the veteran parent enlisted on or after July 1, 2011, the exemption is reduced to "20% plus the veteran parent's VA disability rating" — so a child of a 100%-rated veteran still gets 100%, a child of an 80%-rated veteran gets 100% (20% + 80%), and a child of a 50%-rated veteran gets 70%. (For private, non-profit schools the award is capped at $5,000/year, and only for students who graduated high school on or after January 1, 2023.)
  • Veteran-parent eligibility: served during a war or in equally hazardous duty recognized by a service/campaign (expeditionary) medal (Guard/reserve service can count); has a VA service-connected disability rating (0%–100%) or a service-connected death determination; discharge other than dishonorable; and either entered service from an Indiana home of record or was an Indiana resident for at least 5 years.
  • Student eligibility: the biological child (or adopted before age 18) of the veteran, who first applies and is found eligible before turning 33. Stepchildren are not eligible.
• Children of Purple Heart recipients have a parallel tuition-and-fee exemption program through CHE.

1. Confirm your child's and your own eligibility on the IDVA full eligibility requirements page, and note the enlistment-date rule that sets the exemption percentage.
2. Have your student complete the one-time application through ScholarTrack (ScholarTrack.IN.gov) and file the FAFSA (Free Application for Federal Student Aid) every year they use the exemption. IDVA reviews the application.
3. Coordinate with the school's financial aid office so the exemption applies against actual tuition and fees owed.

Sources Higher Ed Commission — children of disabled veterans · Higher Ed Commission — children of Purple Heart recipients · IDVA full eligibility requirements

State Veterans' Home & long-term care

What it is: Indiana operates the Indiana Veterans' Home (IVH), a state-run facility offering long-term skilled nursing, short-term rehabilitation, and memory care.

• Who it serves: honorably discharged Indiana veterans and their spouses (and, since 2018, Gold Star parents). Care includes 24/7 skilled nursing, physical/occupational/speech therapy, memory care, and on-site medical services.
• Where: 3851 N. River Road, West Lafayette, IN 47906. Admissions: 765-463-1502. Your CVSO and the local Area Agency on Aging can help you through the application. See in.gov/ivh for the admissions packet.
• Cost: confirm your specific cost with the IVH admissions office — for many higher-rated service-connected veterans the VA pays a substantial share of skilled-nursing cost, but the exact figure depends on your rating and care level, so get it in writing.

1. Call IVH admissions at 765-463-1502 and request the admissions/physician's-statement packet.
2. Have your discharge document (DD Form 214) and VA rating letter ready, and ask your CVSO to help.
3. Confirm your out-of-pocket cost given your VA rating before admission.

Sources Indiana Veterans' Home

State hiring & civil service

What it is: Indiana gives veterans a hiring preference and priority employment services through the Department of Workforce Development (DWD).

• Veterans' hiring preference — two distinct statutes. For competitive examinations used by political subdivisions (counties, cities, etc.), an eligible veteran is awarded preference points equal to 10% of the total points available on the exam; qualifying requires at least 181 days of active-duty service and a qualifying discharge. Separately, for state classified-service positions, a different statute gives veterans preference for appointment and reemployment, guarantees inclusion in the interview pool when minimally qualified, and counts military time toward seniority in a reduction-in-force — this is not a points score. Veterans disabled by wounds or sickness incurred in the line of duty are given further preference for appointment where they meet the qualifications. Confirm which statute applies to a specific posting with the hiring agency.
• WorkOne priority of service: at Indiana WorkOne career centers, veterans "go to the front of the line," and each office has an on-site veteran representative (an honorably discharged service member) to help with resumes, interview prep, job referrals, and training.
• Hire a Veteran connects Indiana employers with veteran job seekers.

1. When you apply for a state or local government job, claim veteran status and request your preference, with your DD Form 214 and VA rating letter ready; ask the hiring agency exactly how the preference is applied.
2. Visit a WorkOne center and ask for the veteran representative for one-on-one help.

Sources Indiana DWD — veterans' services · the veterans' hiring-preference law (IC 5-9-3) · Indiana DWD — Hire a Veteran

Other: burial, cemetery, family relief

What it is: a state veterans cemetery with free burial for the veteran, plus a hardship fund and other IDVA programs.

• Indiana Veterans Memorial Cemetery (Madison): any eligible Indiana-resident veteran discharged under conditions other than dishonorable is buried at no cost to the family — no charge for the grave site or use of the chapel for the interment service. An eligible surviving spouse and dependent children (a child under 21, or a permanent dependent) may also be buried there; a spouse's burial requires payment of an opening-and-closing fee. Location: 1415 North Gate Road, Madison, IN 47250; (812) 273-9220; [email protected].
• County burial allowance — a separate, distinct benefit: beyond the free state-cemetery burial above, Indiana Code 10-17-10-1 requires each county to allow a burial claim of up to $1,000 for a qualifying Indiana-resident veteran (or spouse) buried "in a decent and respectable manner" anywhere, not just at the state cemetery. File the claim through your CVSO — ask specifically about this $1,000 county allowance in addition to (not instead of) any state-cemetery or federal burial benefit.
• Military Family Relief Fund: an IDVA-administered program providing short-term financial help to a current service member, veteran, or their dependents facing genuine hardship affecting central, basic living needs (luxury, entertainment, and recreational expenses do not qualify). Combined household gross income (you plus spouse) generally cannot exceed 2 times the federal poverty guidelines, though the Military Family Relief Commission can grant a written waiver. Grants are capped at $2,500 per applicant unless the Commission approves more, and priority goes to applicants who haven't received a grant before. If denied, you have 30 days from the denial letter to appeal. Apply through IDVA at [email protected] or 317-232-3910.
• Using a paid claims consultant instead of your free CVSO? As of a 2026 law change, a county or city service officer must be accredited by IDVA to provide service to veterans on the county's or city's behalf after June 30, 2026 — one more reason to work through your CVSO rather than a private company.

1. For burial at the state cemetery, contact the cemetery superintendent at (812) 273-9220 or your CVSO to confirm eligibility and schedule.
2. Ask your CVSO about the separate $1,000 county burial allowance in addition to the state cemetery benefit.
3. For hardship help, ask your CVSO about the Military Family Relief Fund (income test, $2,500 cap, 30-day appeal window) and how to apply.

Sources Indiana DVA — Veterans Memorial Cemetery · IDVA — Military Family Relief Fund eligibility · Enrolled House Act 1343 (2026)

Who to call

The Indiana Department of Veterans Affairs (IDVA) is your single front door for the state programs above, and your County Veteran Service Officer (CVSO) is your free, local, accredited helper for both benefits and VA claims.

• Website: in.gov/dva
• Phone: 1-800-457-8283; Text: 1-888-311-1846
• In-person applications (e.g., license plates): Indiana DVA, 777 North Meridian Street, Suite 300, Indianapolis, IN 46204 (8 a.m.–4 p.m.)
• Find your local officer with the IDVA "Find Your CVSO" locator on in.gov/dva
• Property tax questions: your county auditor (they administer the deduction/credit)

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 or your CVSO. Find one through IDVA or at VA.gov. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, parks, education, the veterans' home, hiring, burial) go to the specific office linked in that section, or start at in.gov/dva.

Sources Indiana DVA — property tax benefits

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