Subscribe

Kentucky Disabled Veteran Benefits

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 yet. Two bills tried to create a veteran-specific homestead exemption tied to your VA rating. The first, from the 2025 session, would have given a graduated exemption reaching up to hundreds of thousands of dollars for 100% permanently and totally disabled veterans, but it died in committee in early 2025 with no floor vote and was never signed. Its smaller successor, introduced in 2026, would give a $100,000 exemption to veterans with a 50% or greater service-connected disability and would apply to property assessed on or after January 1, 2027 — but as of this writing it remains stuck in committee and has not been enacted. Until one of these is actually signed into law, there is no veteran-specific property tax exemption in Kentucky — disabled veterans use only the general homestead exemption described below.

Sources the 2025 bill · the 2026 bill

In this section

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:

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.

  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.

  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.

  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):

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.

  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.

  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.

  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.

  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.

← All states

Get the plain-English money guide, free.

One useful idea every week or two, built for rated disabled veterans. No spam, no sales pitch.

Not affiliated with the U.S. Department of Veterans Affairs (VA) or any government agency. “VA” and other agency names are used only as factual references and imply no endorsement.

This is general education, not advice. Nothing here is individualized legal, tax, financial, or investment advice, and nothing here is VA claims assistance or representation. We do not prepare, present, or charge for VA benefit claims. Rules, rates, forms, and deadlines change, always verify at the official source linked before you rely on it. For claims help, use a free VA-accredited Veterans Service Organization (DAV, VFW, American Legion, or your county Veterans Service Officer). For individualized money decisions, consult a fee-only fiduciary professional.

Applying for benefits is free and self-service: enrolling in VA health care, CHAMPVA, Dependents’ Educational Assistance (DEA), a Total and Permanent Disability (TPD) student-loan discharge, the VA home-loan funding-fee waiver, and Concurrent Retirement and Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC) never require paying anyone a fee. Be alert to “pension poaching”: people or companies that charge fees, push you to move money into trusts or annuities, or offer a lump-sum “buyout” of your future VA payments to “qualify” you for a benefit or “help” with paperwork. Report suspected fraud to the VA Office of Inspector General at va.gov/oig/hotline or 1-800-827-1000.

How we make money (someday): this is free. When we recommend a product or service we trust, some links may earn us a commission at no cost to you, and we will always say so clearly. We will never take a fee tied to your VA rating or benefits.

Affiliate disclosure per FTC 16 CFR Part 255.