Indiana Disabled Veteran Benefits

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 veterans generally must re-file a new application with their county auditor or County Veteran Service Officer before the end of 2026 to lock in the new benefit. Older filings do not all carry over automatically. Do not rely on the exact 2027 dollar mechanics from any secondhand summary; confirm your status and the re-filing deadline directly with your county auditor or the Indiana Department of Veterans Affairs (IDVA). Note also: an older eligibility certificate that some counties previously required is being discontinued, so the current application 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, and, as of the 2026 rewrite in the note above, the biggest version is now a full (100%) deduction of assessed value with no home-value cap. You do not get this automatically; you file with your county auditor (your CVSO can help you complete and certify the application).

The route to a full (100%) exemption, spelled out:

• Total (100%) service-connected disability — the full 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. Under the 2026 law the former assessed-value ceiling (the old system capped the benefit and only helped up to a set home value) is removed for the total-disability deduction. 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. The law keys on total disability, and you want that confirmed for your specific rating.

The partial-rating credits (used when the full deduction does not apply):

• $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 or who died on active duty may qualify for this one.
• Home donated by a nonprofit (50%–100% deduction) — 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 or who died on active duty 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). (You no longer need the older eligibility certificate that some counties once required — Form 12662 is all the state now lists.)
4. Because of the 2026 law, ask specifically whether you must re-file for the 2026 assessment year (taxes payable 2027), what the deadline is (generally by the end of 2026), and — if you are totally disabled — confirm you are being put on the full 100% deduction with no value cap.
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

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 receive the property tax deduction (for example, a veteran who rents or does not own qualifying real property), Indiana provides an excise tax credit reported as the lesser of the vehicle's excise tax liability or $70, for up to two vehicles. It generally requires 90+ days of service, an honorable discharge, a DVA-issued certificate of eligibility for the qualifying disability, and an affidavit from the county auditor confirming you do not already receive the property tax deduction. Confirm the current amount and process with your county auditor.
• 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: Indiana law provides a veterans' employment preference. For examinations used by the state and its political subdivisions, an eligible veteran is generally awarded preference points equal to 10% of the total points available on the exam, and veterans disabled by wounds or sickness incurred in the line of duty are given further preference for appointment where they meet the qualifications. Confirm the exact preference that 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 · 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.
• Burial claims / allowances: counties process veteran burial claims through the County Veteran Service Officer — ask your CVSO what burial assistance you qualify for (state and federal), rather than relying on a fixed figure from a third-party site.
• Military Family Relief Fund: an IDVA-administered program providing short-term financial help to eligible service members' and veterans' families in hardship. Confirm current eligibility and funding with IDVA.

1. For burial at the state cemetery, contact the cemetery superintendent at (812) 273-9220 or your CVSO to confirm eligibility and schedule.
2. For hardship help, ask your CVSO about the Military Family Relief Fund and how to apply.

Sources Indiana DVA — Veterans Memorial Cemetery

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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