Kentucky Disabled Veteran Benefits

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If you are a disabled veteran living in Kentucky, 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 homestead exemption, state income tax breaks, vehicle plates and fee waivers, parks and hunting/fishing, tuition for your family, state veterans centers, hiring preference, and more. Every dollar figure, deadline, and form name below comes from an official Kentucky 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. Kentucky's own Department of Veterans Affairs staffs accredited officers who do this at no charge.

Heads-up on the disabled-veteran property tax exemption you may have heard about: it is NOT law in Kentucky. Multiple bills have tried to create a veteran-specific homestead exemption tied to your VA rating. HB 639 (2025) would have given a graduated exemption reaching up to hundreds of thousands of dollars for 100% permanently and totally disabled veterans, but died in committee with no floor vote. HB 285 (2026) would have given a $100,000 exemption to veterans with a 50% or greater rating starting with property assessed January 1, 2027 — but it never got a committee hearing, and it died, along with four companion constitutional-amendment bills (SB 169, HB 242, HB 587, HB 877) that took the same idea in different directions, when the General Assembly adjourned sine die on April 15, 2026. None of these are law. Until one is actually signed, there is no veteran-specific property tax exemption in Kentucky — disabled veterans use only the general homestead exemption described below. A new attempt would need to be reintroduced in a future session (Kentucky's next regular session convenes January 2027).

Sources HB 639 (2025) · HB 285 (2026)

Property tax exemption

What it is: Kentucky does not currently have a property tax exemption written specifically for disabled veterans (see the note above about the two pending bills). What Kentucky does have is one general Homestead / Disability Exemption in the state Constitution that a disabled veteran can use — but on the same terms as any other totally disabled resident, not as a veteran benefit. It is a deduction from your home's assessed value, not a full wipe-out of your tax bill. You file it with your county Property Valuation Administrator (PVA), not the state.

Every route to the exemption, spelled out:

• Age route: you are 65 or older during the tax year, and you own, occupy, and maintain the home as your personal residence on the January 1 assessment date.
• Disability route (how most disabled veterans qualify): you are classified as totally disabled under a program administered by a government agency or retirement system, you received disability payments for the full assessment period, and you own/occupy the home as your residence on January 1. A VA rating of 100% (or being VA-rated totally disabled) meets the "totally disabled under a government program" test.

How much it is worth: for the 2025–2026 assessment period the exemption is $49,100, deducted from your home's assessed value before taxes are computed (up from $46,350 for 2023–2024; the Department of Revenue resets it every two years for inflation).

Can this ever be a FULL exemption? Only in the arithmetic sense: because it is a $49,100 deduction, if your home's assessed value is $49,100 or less, the deduction zeroes out your tax and you owe nothing. On a higher-valued home it only reduces the taxable value. There is no 100%-rating, Permanent & Total (P&T), Individual Unemployability, or specially-adapted-housing "full exemption" door in current Kentucky law — those are exactly what the pending bills in the note above would add. Do not rely on any full veteran exemption until a bill is signed.

One real veteran advantage inside the general program: the disability exemption normally has to be re-applied for every year — but a veteran with a service-connected disability is exempt from that annual re-filing (once approved, it carries forward). This is the one place the general program singles veterans out.

1. Get the application form, Form 62A350 — Application for Exemption Under the Homestead/Disability Amendment (PDF).
2. Gather your proof: your VA award/rating letter showing you are totally disabled (or proof you are 65+), and proof you own and live in the home.
3. File Form 62A350 with your county PVA office (each county has its own; search "[your county] KY PVA"). File by December 31 of the tax year you want it to apply.
4. Because you are a service-connected disabled veteran, tell the PVA so they flag you as exempt from annual reapplication.
5. Watch the pending bills described at the top of this page — if a veteran-specific exemption is ever enacted, ask your PVA how to switch to it and whether it stacks with this $49,100 exemption.

Sources Dept. of Revenue homestead page · the 2025-2026 exemption announcement

State income tax

What it is: Kentucky does not tax your VA disability compensation, fully exempts active-duty military pay, and gives military retirement pay a generous exclusion.

• VA disability compensation is not taxed. It is excluded from federal gross income, and Kentucky's individual income tax starts from your federal figures, so it is not taxed by Kentucky either. Kentucky's military-tax guidance does not list it as taxable income.
• Active-duty military pay is fully exempt from Kentucky income tax (for tax years beginning on or after January 1, 2010), regardless of where you are stationed; Kentucky tax should not be withheld from military pay, and if active-duty pay is your only income you may not need to file.
• Military retirement pay is covered by Kentucky's pension income exclusion of up to $31,110 for the tax year (this cap covers all your retirement/pension income combined, not just military). If your total pension income is above $31,110, you compute the taxable portion on Kentucky Schedule P. Kentucky's rules also give special treatment to retirement earned before certain dates and to federal retirees, so if you retired from the military before January 1, 1998, confirm you can exclude that pay in full on Schedule P (PDF).
• Military spouse (MSRRA): under the federal Military Spouses Residency Relief Act, a non-resident spouse of an active-duty member stationed in Kentucky can keep a home-state domicile and avoid Kentucky tax on their own income when the conditions are met; such spouses file Form 740-NP (PDF) and can claim a withholding exemption on Form K-4 (PDF).
• Pending (not law): bills to raise the exclusion or fully exempt military retirement pay have been introduced in recent sessions but were not enacted. Do not count on a full military-retirement exemption until it is signed; check the current-year rules each filing season with the Department of Revenue's military tax guidance.

1. Confirm your VA disability compensation never appears as taxable income on your Kentucky return (it should not appear on your federal return either, and Kentucky starts from federal).
2. If you receive military retirement pay, complete Schedule P (PDF) to exclude up to $31,110 (more if you retired before 1998 or are a federal retiree), and confirm the current-year line on the Kentucky Form 740 (PDF).
3. If a past return taxed your VA compensation or over-taxed your military retirement, fix it with a preparer familiar with military filings or by contacting the Department of Revenue — this is a filing mechanic, not claims work.

Sources military tax issues (Dept. of Revenue)

Vehicles, plates & tolls

What it is: the Kentucky Transportation Cabinet issues a free (no registration fee) Disabled Veteran license plate and registration to qualifying veterans, plus disabled-parking placards through your county clerk.

• Disabled Veterans free registration & plate: filed on Form TC 96-217 — Application for Disabled Veterans Free Certificate of Registration and License Plate (PDF). Per the form itself, you qualify as a Kentucky-resident disabled veteran if you meet any one of these:
  • you received assistance from the VA to purchase a vehicle (the automobile/adaptive-equipment grant); or
  • the VA has declared you 100% service-connected disabled; or
  • you are a Congressional Medal of Honor recipient.
  The county clerk does not collect a registration fee; you still pay any applicable usage tax or ad valorem (property) tax on the vehicle. Plates are for non-commercial vehicles under 10,000 lbs.
• Disabled parking placard/plate: separate from the veteran plate and available for any qualifying mobility disability (not veteran-exclusive), filed on Form TC 96-347 (PDF) through your county clerk.
• Tolls: no Kentucky-specific disabled-veteran toll discount or waiver was found in official sources (Kentucky has very few toll facilities). If you cross the Louisville–Southern Indiana Ohio River bridges, confirm any disability program directly with the RiverLink toll authority.
• Extra parking time: a vehicle bearing the plate issued under KRS 186.041 (the disabled-veteran or Medal of Honor/Distinguished Service Cross/Navy Cross/Air Force Cross plate) gets an automatic 2-hour extension past a posted parking time limit, under KRS 189.4595 — though local fire-lane, traffic-hazard, and rush-hour restrictions still apply.

1. Complete Form TC 96-217 and get it notarized (the form has a notarization block).
2. Attach a copy of your VA authorization — your VA letter showing 100% service-connected status, your vehicle-grant award, or your Medal of Honor documentation — plus the usual title/registration paperwork.
3. Take it to your county clerk's office. Confirm at the counter that no registration fee is charged (usage/ad valorem tax may still apply).
4. If you also need accessible parking, ask the clerk about Form TC 96-347 for a disabled placard or plate.

Sources DRIVE — military & veterans (Transportation Cabinet)

Recreation: parks, hunting & fishing

What it is: a deeply discounted all-in-one hunting/fishing license for disabled veterans through the Department of Fish & Wildlife Resources (KDFWR), and free state-park lodging/camping for 100% permanently and totally disabled veterans.

• Disabled Sportsman's License (hunting & fishing): Kentucky resident veterans who are at least 50% disabled from a service-connected disability qualify. It bundles the same licenses and permits as the Resident Sportsman's License — annual hunting and fishing license, plus deer, turkey, migratory bird/waterfowl, and trout permits — at a steep discount versus buying them separately. It is valid through the end of February each year. To buy it you first get a disability license authorization from KDFWR (good for three years). Get a VA letter verifying your 50%-or-greater service-connected rating, showing your current Kentucky address and the last four digits of your Social Security number.
• State parks — free overnight stays for 100% P&T veterans: a Kentucky-resident veteran rated 100% permanently and totally disabled from a service-connected condition (determined by the VA or DoD) is exempt from the overnight accommodation rate at Kentucky state parks — a hotel/lodge room, cottage, or campsite — for up to 3 overnight stays per calendar year, 3 nights maximum per visit, for the accommodation the veteran personally occupies. From Memorial Day through Labor Day and during October, stays must fall in a Sunday–Thursday window; other times of year, any days, subject to availability. Reservations can be made no more than 10 days before arrival, and you must show a VA disability letter and proof of Kentucky residency at check-in.
• Former prisoners of war: Kentucky POWs camp for free at Kentucky State Parks with a POW card issued by the VA.
• Active/retired military discount (not disability-specific): Kentucky State Parks offers seasonal lodging discounts (a "USA" promo code in the off-season, a percentage off in season) and a discount for campers who select the "Military" customer type.

1. For the Disabled Sportsman's License, get your VA letter showing a 50%+ service-connected rating (with your KY address and last four of your SSN), then obtain your disability license authorization from KDFWR and buy the license.
2. For free park stays, confirm you are 100% P&T service-connected, then call your chosen park directly (within 10 days of your arrival date) to reserve, and bring your VA letter and Kentucky ID to check-in.
3. If you are a former POW, ask the park about free camping with your VA-issued POW card.

Sources Fish & Wildlife licenses · Kentucky State Parks deals · the state-parks statute

Education for you & your family

What it is: the Kentucky Tuition Waiver, administered through the Kentucky Department of Veterans Affairs (KDVA), waives tuition only for the family members of qualifying veterans at Kentucky public schools. It does not cover room, board, books, or fees, and it does not apply to private or out-of-state schools.

Who in the family can use it: children, stepchildren, spouses, and un-remarried widows/widowers of a qualifying veteran.

Every way the veteran's service qualifies the family (meet any one):

• the veteran died on active duty; or
• the veteran died as a direct result of a service-connected disability (as determined by the VA); or
• the veteran is 100% service-connected disabled (this is the route most relevant to a living disabled veteran — it makes your dependents eligible); or
• the veteran is totally disabled (non-service-connected) and served during a wartime period, as deemed by the VA or DoD; or
• the veteran is deceased, lived in Kentucky at the time of death, and served during a wartime period.

What it covers and the limits: tuition only, at Kentucky public two-year, four-year, and vocational-technical schools. A child can use it until age 26; the benefit runs up to 45 months of classes or until the student earns a degree, whichever comes first. There is no age limit for a spouse.

1. Confirm which qualifying route fits (most living disabled veterans qualify their family under the 100% service-connected route).
2. Read the program summary and get the application from KDVA's education page.
3. Submit the application with the veteran's VA rating documentation and the dependent's information. Questions go to the KDVA Tuition Waiver Coordinator at 502-503-7911.
4. Coordinate with the school's financial aid office so the waiver is applied against tuition owed. (If you are the veteran and want to know whether you can use it on yourself rather than only your dependents, confirm that directly with KDVA — the program is written around family members.)

Sources KDVA education benefits · tuition waiver program summary (PDF)

State Veterans' Homes & long-term care

What it is: Kentucky runs several State Veterans Centers — skilled-nursing/long-term-care homes for eligible veterans — spread so most veterans are within reach of one.

• The centers: Paul E. Patton Eastern Kentucky Veterans Center (Hazard), Western Kentucky Veterans Center (near Hanson/Madisonville), Thomson-Hood Veterans Center (Wilmore), Carl M. Brashear Radcliff Veterans Center (Radcliff — a 120-bed facility opened in 2017), and Robert E. Spiller Bowling Green Veterans Center.
• Who is eligible: you must be a Kentucky resident as of the admission date and need skilled nursing care (24/7 care — help with dressing, bathing, transferring, eating, or medications). Only veterans are admitted — spouses are not eligible. Certain acute conditions (acute mental illness, active substance addiction, continuously disruptive or dangerous behavior) can disqualify.
• Cost: these homes draw a VA per-diem, and your cost-share can depend on your service-connected disability rating and care needs. Confirm your specific cost with the center's Admission Coordinator — the state pages do not publish a single rate.

1. Pick the closest center from the KDVA veterans-centers directory.
2. Confirm you meet the residency and skilled-nursing-need requirements on the admission page.
3. Call that center's Admission Coordinator, request the application and physician's-statement packet, and ask what your cost will be given your VA rating.
4. Have your discharge document (DD Form 214) and VA rating letter ready.

Sources Kentucky Veterans Centers · admission to state veterans homes

State hiring & civil service

What it is: Kentucky gives veterans — and disabled veterans especially — a hiring preference for state merit (classified) jobs through the Personnel Cabinet.

• Veterans' Interview Preference is a guaranteed-interview system, not a points score. Under KRS 18A.150 and current Personnel Cabinet guidance, a qualifying veteran, current service member, spouse of a disabled veteran, unremarried surviving spouse of a veteran who died in service, or dependent parent of a KIA or permanently-and-totally-disabled veteran is flagged for interview preference on a merit (classified) job. The hiring agency must then interview all such flagged applicants if fewer than five apply, or a minimum of five if five or more apply. If a preference-eligible veteran is the most-qualified or tied-most-qualified candidate, the position must be offered to the veteran. (You may see this described elsewhere as a numeric "point" system — that is the separate federal OPM hiring-preference program, not how Kentucky's own preference works.)
• Employment help: KDVA and the Kentucky Career Centers run dedicated veteran employment and training resources statewide.

1. When you apply for a Kentucky state job, claim veteran status and request your interview preference in the application system, with your DD Form 214 and VA rating letter ready.
2. If you are a disabled veteran (or the qualifying spouse/parent), make sure you are recorded for the 10-point preference, following the Personnel Cabinet's external applicant guide.
3. Use KDVA's KyVets employment resources and your local Kentucky Career Center for help with the search.

Sources External Applicant Guide (Personnel Cabinet) · the hiring-preference statute · KyVets employment resources

Other: burial, veteran business

What it is: a state business certification for service-disabled veteran owners, five state veterans cemeteries, and free accredited claims help.

• Service-Disabled Veteran-Owned Small Business (SDVOSB) certification: administered by the Finance and Administration Cabinet's Office of Equal Employment Opportunity and Contract Compliance. It certifies businesses that are at least 51% owned and controlled by a veteran with a service-connected disability who served on active duty and separated under honorable or general conditions. Certification is free and lasts three years, and it helps you compete for state (and some other states') contracting work. Contact: 200 Mero Street, 5th Floor, Frankfort, KY 40622; 502-564-2874; [email protected].
• State veterans cemeteries: Kentucky operates five state veterans cemeteries (Hopkinsville, Radcliff, Williamstown, Greenup, and Hyden), placing one within about 75 miles of every Kentucky veteran. Burial benefits include a gravesite, opening and closing of the grave, perpetual care, a government headstone or marker, a burial flag, and a Presidential Memorial Certificate — free to the veteran. If a spouse is buried in the same plot, KDVA charges a $500 spousal fee, payable at the time of death (not up front). You do not have to be a Kentucky resident to be eligible.
• Free accredited claims help: KDVA staffs fully accredited, full-time Veterans Service Officers who help veterans, dependents, and survivors obtain federal and state benefits — including through a Board of Veterans' Appeals — at no charge.

1. If you own or want to start a business, review the SDVOSB program page and apply (free, valid three years).
2. For burial, contact the nearest of the five state veterans cemeteries to confirm eligibility and pre-register.
3. For anything tied to your VA rating, use a free KDVA accredited officer — never a paid company.

Sources SDVOSB certification program · state veterans cemeteries · KDVA veterans benefits

Who to call

The Kentucky Department of Veterans Affairs (KDVA) is your single front door for the state programs above and for a free accredited officer to help with a VA claim, a rating, or an appeal.

• Website: veterans.ky.gov
• Main line: 502-564-9203 (confirm the current number and ask for the office nearest you at the KDVA benefits page)
• Property tax questions: your county Property Valuation Administrator (PVA) (they administer the exemption) and the Kentucky Dept. of Revenue homestead page
• In crisis: the Veterans Crisis Line — dial 988 then press 1, or text 838255

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. Use a KDVA officer (start at veterans.ky.gov) or find one at VA.gov. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, parks, hunting/fishing, tuition, veterans centers, hiring, business) go to the specific office linked in that section, or start at veterans.ky.gov.

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