North Carolina Disabled Veteran Benefits

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If you are a disabled veteran living in North Carolina, 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 exclusion, state income tax breaks, license plates, parks and hunting/fishing, education for you and your kids, the state veterans nursing homes, hiring preference, and burial. Every dollar figure, deadline, and form name below comes from an official North Carolina 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. In North Carolina your VSO is usually a County or State Veteran Service Officer accredited by the state veterans agency, and several of the benefits below actually require that officer to certify your paperwork.

Pending — larger property-tax breaks that are NOT yet law. Two bills are moving through the General Assembly. House Bill 118 is the more advanced of the two: it would raise the disabled-veteran exclusion from $45,000 to $61,000, keeping the same eligibility rules, and has passed two House committees (Homeland Security/Veterans Affairs, then Finance) but has not had a House floor vote, has not passed the Senate, and has not been signed into law. A separate 2025 bill nicknamed the “Honoring Sacrifice: NC Veterans Relief Act” (Senate Bill 660 / House Bill 728) would raise the exclusion in bigger stages (proposed $75,000, then $125,000, then the lesser of $500,000 or full appraised value) and would also exempt a 100%-disabled veteran's primary vehicle from property tax, but it has been sitting in committee since March 2025 with no further action. Do not count on any figure above the current $45,000 exclusion, or on any vehicle property-tax exemption, until one of these bills is actually enacted. Check the live status yourself.

Sources HB118 live status · SB660 live status

Property tax exemption

What it is: North Carolina's benefit for disabled veterans is the Disabled Veteran Property Tax Exclusion. It excludes the first $45,000 of the assessed (appraised) value of your permanent residence from property tax. Two honest points up front, because this is a one-stop-shop and I would rather you hear it here: North Carolina does not currently offer a full (100%) property-tax exemption for disabled veterans — the break is capped at that $45,000 of value no matter how high your rating, and you still pay tax on the value above it. The good news is there is no income limit on this exclusion (unlike North Carolina's separate elderly/disabled programs), and the qualifying rules are clear.

Every way to qualify (you need the character-of-service test plus ONE of the disability routes):

• Character of service (required for everyone): discharge or release from any branch of the U.S. Armed Forces under honorable or under-honorable-conditions status.
• Disability route 1 — total & permanent rating: the VA rates you 100% totally and permanently disabled from a service-connected condition. (North Carolina's exclusion keys on a permanent and total (P&T) service-connected disability; if you are rated 100% but the VA has not marked it permanent, or you are paid at the 100% rate through Individual Unemployability (IU) without a P&T designation, ask a County Veteran Service Officer to confirm whether your specific award letter satisfies the rule before you assume yes or no.)
• Disability route 2 — specially adapted housing: you received VA benefits for specially adapted housing (SAH). This is an independent route — it qualifies you whether or not you separately hold a 100% rating.

Surviving spouse continuation: a never-remarried surviving spouse may keep the $45,000 exclusion on a home they own if the veteran (a) had a permanent and total service-connected disability, (b) received specially-adapted-housing benefits, or (c) died as a result of a service-connected condition (VA documentation required). Note the third route: a spouse can qualify on the veteran's service-connected death even if the veteran was not rated 100% while living.

1. Get your VA award/rating letter (or your SAH grant approval) showing the qualifying condition.
2. Complete Sections 1 and 2 of Form NCDVA-9 (Certification of Disabled Veteran's Property Tax Exclusion): file Form NCDVA-9 (direct file: NCDVA-9 and Instructions PDF).
3. Take the NCDVA-9 to your County (or State) Veteran Service Officer to have it certified — the county tax office will not accept it without that certification.
4. File the certified NCDVA-9 together with Form AV-9 (Application for Property Tax Relief) at your county tax office: file Form AV-9 (2026) (direct PDF: AV-9 2026 PDF).
5. File by the June 1 timely-filing deadline of the tax year. Some counties will accept a late application for good cause — confirm your county's practice directly if you miss June 1.
6. Check your next tax bill for the exclusion line, or call the county assessor a few weeks after filing, to confirm it posted.

Sources NC veterans agency

State income tax

What it is: North Carolina does not tax your already federally tax-free VA disability compensation, and it fully exempts military retirement pay.

• VA disability compensation is not taxed. Service-connected disability compensation is excluded from federal gross income, and North Carolina starts from your federal figures, so it never appears as taxable income on your North Carolina return (this is a federal rule, not North Carolina–specific).
• Military retirement pay is fully deductible from North Carolina income tax, effective for tax years beginning in 2021. It covers retirees who served at least 20 years or were medically retired, and it also covers Survivor Benefit Plan (SBP) annuity payments to a beneficiary. Attach your Form 1099-R to the return.
• Thrift Savings Plan (TSP) withdrawals are NOT exempt. Even though military retired pay is deductible, TSP distributions remain subject to North Carolina income tax.
• The flat rate applies to any non-exempt income (wages, TSP, etc.). North Carolina's flat individual income tax rate is 4.25% for tax year 2025 and 3.99% for tax year 2026, with further scheduled reductions after 2025 if revenue triggers are met. This is a general-population rate, not veteran-specific.

1. Confirm your VA disability compensation is not listed as income on your North Carolina return (it should not be on your federal return either).
2. If you receive military retired pay or SBP, take the North Carolina military-retirement deduction on the current-year return and attach your 1099-R; check the current state military-retirement instructions for the exact line.
3. If a prior return taxed your VA compensation or retired pay by mistake, fix it with a preparer familiar with military returns or by contacting the state tax department — this is a filing mechanic, not claims work.

Sources State Tax Dept — military retirement · the retirement-pay deduction notice · tax rate schedules

Vehicles, plates & tolls

What it is: the North Carolina Division of Motor Vehicles (DMV) issues a free Disabled Veteran license plate. North Carolina does not run a statewide veteran toll program, so this section is about the plate.

• Disabled Veteran (DV) plate — free. The plate itself carries no plate fee and no annual registration fee. It is reserved for veterans with a combined 100% VA rating or those receiving Individual Unemployability (IU) and paid at the 100% rate. Veterans with a lower rating receive a partially-disabled-veteran certification instead.
• County vehicle property tax is NOT waived by this plate. North Carolina bills vehicle property tax separately at registration; the free plate removes the plate/registration fee only, not the county tax. (The pending bill in the box above would exempt a 100%-disabled veteran's primary vehicle from property tax — but that is not law yet.)
• Form and certification: apply on Form MVR-33A (Military/Veteran's Registration Plate Application). You complete your sections, then the certification section must be signed in person by an NC DMVA Accredited Service Officer (County or State) — the DMV will not process it without that certification. You will need a VA Rating Letter or Summary of Benefits letter (dated within the last year) showing the combined rating. Direct form: file Form MVR-33A (PDF).
• Disabled parking placard or plate. A doctor's certification is the usual route to a disabled-parking placard or plate, but North Carolina law lets a VA disability determination substitute for the doctor's signature — apply on Form MVR-37A. There is a minimum $5 fee and the placard is good for 5 years without needing to re-certify if you were certified totally and permanently disabled at your initial application (or once you turn 80). Importantly, both the full Disabled Veteran plate and the Partially Disabled Veteran plate carry parking privileges in a designated accessible space, so you do not need a separate placard if you already have either veteran plate.

1. Get a current (within one year) VA Rating Letter or Summary of Benefits letter showing your combined 100% rating or IU-at-100% status.
2. Fill out your portion of Form MVR-33A.
3. Take it to a County or State Veteran Service Officer to certify the veteran section in person.
4. Submit the certified MVR-33A to the DMV with your vehicle and insurance information, and confirm the plate and registration fees are waived before you pay.

Sources NC veterans agency — license plates

Recreation: parks, hunting & fishing

What it is: a free annual State Parks pass for veterans with a service-connected disability, and a low-cost lifetime hunting/fishing license for veterans rated 50% or more.

• Free NC State Parks Annual Pass. Under a 2024 state law, any honorably-discharged veteran with a VA-certified service-connected disability can get a free Annual Pass — the official announcement sets no minimum disability-rating percentage. Most North Carolina parks charge no general entry fee anyway; the pass (a roughly $90 value) instead covers day-use at Falls Lake, Jordan Lake, and Kerr Lake recreation areas, the Hammocks Beach ferry to Bear Island, boat launches at Carolina Beach and Hammocks Beach, and canoe/kayak/paddleboard rentals at select parks. An optional 4WD Beach Access version is available for Fort Fisher. You submit a request with a copy of your VA Summary of Benefits Letter; plan to re-request each calendar year (confirm the current renewal cadence when you apply).
• Lifetime Disabled Veteran hunting & fishing license. North Carolina residents determined by the VA to be 50% or more disabled qualify for a lifetime disabled-veteran hunting and inland-fishing license through the NC Wildlife Resources Commission (NCWRC). It is a heavily discounted license, not free — the resident disabled-veteran lifetime combination license is $14 (it rose from $11 effective July 1, 2024), but confirm the current price with NCWRC when you apply. VA certification is required, and you apply by mail or in person.
• Free Mountain Heritage Trout Waters fishing. Any honorably-discharged veteran (any disability rating, resident or nonresident) is exempt from needing a fishing license on North Carolina's designated Mountain Heritage Trout Waters — about 17 mountain communities' waters. Carry proof of your service with you.

1. For the parks pass, get your VA Summary of Benefits Letter and submit the request form from the state parks free-pass page (linked below); re-request each calendar year.
2. For the lifetime license, get VA certification of a 50%+ rating (a County/State Veteran Service Officer can help), then apply through the NCWRC disabled-licenses page (linked below) and confirm the current fee (currently $14) at the counter or by calling NCWRC.

Sources NC State Parks · NC Wildlife Resources Commission

Education for you & your family

What it is: North Carolina's flagship state education benefit for military families is the Scholarship for Children of Wartime Veterans — a benefit for your children, tiered by your service and disability. (For your own schooling, the federal GI Bill and Yellow Ribbon apply at the school level; North Carolina's state scholarship is dependent-focused.)

• Who it is for: the child of a qualifying North Carolina wartime veteran (deceased, disabled, combat, or POW/MIA). The child must be a North Carolina resident and under age 25 at the time of application.
• What it covers: up to eight academic semesters, to be used within eight years of first use, at eligible North Carolina colleges and universities. Depending on the class, the award covers tuition and required fees (and, in some classes, room and board) — confirm the exact benefit tier for your class at the official portal.
• The classes (each keys on a different qualifying condition): the program is divided into Class I-A, Class I-B, Class II, Class III, and Class IV. The disability-based tiers are Class I-B (veteran-parent rated 100% disabled from wartime service, drawing or having drawn compensation — covers tuition and fees at a public school, uncapped, no annual award limit) and Class II (veteran-parent rated 20%–99% disabled from wartime service, or awarded a Purple Heart — covers tuition, fees, and room/board at a public school, normally capped at 100 awards per year with a February 14 deadline). For the 2026–2027 academic year only, a newly enacted state budget law (Session Law 2026-1, Section 2.4, signed April 2026) lets the DMVA Secretary raise that cap to as many as 200 awards in each of Class II and Class III, backed by a new $10 million recurring appropriation — confirm at the portal below whether the higher cap applied to your award year. Class III (VA pension for total/permanent disability, or other circumstances not covered elsewhere) normally carries the same benefit and cap as Class II. Class I-A (parent killed or died from wartime service) and Class IV (POW/MIA parent) carry the richest, uncapped benefit (tuition, fees, and room/board). Confirm current award amounts and deadlines at the portal below, since state funding for this program runs on the state budget cycle and can affect award levels in a given year — a funding gap during the 2025–2026 academic year led to prorated (75%) spring awards before this same budget law restored full funding.
• Residency link: generally the veteran parent must have been a legal North Carolina resident when entering wartime service, or the child was born in North Carolina and has lived there continuously since birth.

1. Confirm the child's age (under 25) and North Carolina residency, and identify which class fits your service/disability.
2. Gather the veteran's DD-214 and VA disability documentation.
3. Apply through the official portal (linked below) and note the class-specific deadline (one deadline applies when the disability is under 100% or based on combat service).

Sources NC veterans agency — scholarships · Session Law 2026-1 (H696), Section 2.4

State Veterans' Homes & long-term care

What it is: North Carolina operates state Veterans Nursing Homes that provide skilled nursing care. As re-verified for this guide, there are four active homes, and the Fayetteville home is currently closed.

• Active homes: Salisbury (99 beds, (704) 639-2320), Black Mountain (100 beds, (828) 257-6801), Kinston (100 beds, (252) 939-8001), and Kernersville (120 beds, (743) 209-3042).
• Fayetteville is closed after the state identified significant repair needs and structural deficiencies; residents were relocated. Confirm current status and any reopening timeline directly with the state veterans agency before relying on it.
• Who can be admitted: generally a North Carolina resident (commonly the two years immediately before applying) who needs nursing-home-level care under physician orders. Confirm the current residency and clinical criteria with the specific home's admissions office.

1. Pick the closest active home (Salisbury, Black Mountain, Kinston, or Kernersville) and call its admissions office at the number above.
2. Ask for the application and physician's-statement packet, and confirm the current residency requirement and your expected cost given your VA rating (the VA often covers a large share of skilled-nursing cost for higher-rated service-connected veterans — confirm your specifics).
3. Have your DD-214 and VA rating letter ready to submit.

Sources NC veterans agency — state veterans homes

State hiring & civil service

What it is: North Carolina gives eligible veterans a hiring preference for state-government jobs, administered by the Office of State Human Resources (OSHR).

• Who is eligible: the preference covers a veteran who served during a period of war, a veteran with a service-connected disability from peacetime service, the spouse of a disabled veteran, and the surviving spouse or dependent of a veteran who died on active duty during wartime or died in service during peacetime.
• When it applies: the preference applies to initial employment, subsequent employment, promotions, reassignments, and horizontal transfers. Where a numerically scored selection is used, eligible veterans receive 10 preference points added to their score. In non-numerically-scored hiring, an eligible veteran can instead receive up to 4 years of additional experience credit for unrelated military service (this specific credit does not extend to spouses/dependents). In a reduction-in-force, veterans get 1 year of state-service credit per year of military service, capped at 5 years.
• Authority: the preference is set by state law and carried out through the OSHR policy.

1. When you apply for a North Carolina state job, claim veteran (or eligible spouse/dependent) status and attach your DD-214 and, if disability-based, your VA rating letter.
2. Read the current OSHR preference policy (linked below) to confirm your category and how the preference is scored for that posting.
3. If a hiring decision seems to ignore your preference, raise it with the hiring agency's HR office referencing that policy.

Sources NC Office of State Human Resources

Other: burial & veterans cemeteries

What it is: North Carolina runs four State Veterans Cemeteries where a qualified veteran is buried at no charge.

• Locations: Western Carolina (Black Mountain), Eastern Carolina (Goldsboro), Coastal Carolina (Jacksonville), and Sandhills (Spring Lake).
• What is free for the veteran: the gravesite, interment (opening/closing), and a government-furnished headstone and its installation, at no charge. There is a burial fee for an eligible spouse or dependent family member.
• Who qualifies: a veteran discharged under honorable conditions who meets the residency requirement (DD-214 required). Eligible dependents include a legal spouse or widow(er), unmarried minor children, and certain permanently disabled adult children — documentary proof is required before interment approval.

1. Keep the veteran's DD-214 and, for dependents, marriage/birth/disability documentation accessible.
2. At time of need, the funeral home or family contacts the chosen state cemetery to confirm eligibility and schedule interment.

Sources NC veterans agency — cemetery program

Who to call

The North Carolina Department of Military & Veterans Affairs (DMVA) is your single front door for the programs above, and its network of County and State Veteran Service Officers provides free accredited help with VA claims, ratings, and certifying the forms several of these benefits require.

• Website: milvets.nc.gov
• Toll-free phone: 844-624-8387
• Mailing address: 4001 Mail Service Center, Raleigh, NC 27699-4001
• Property tax questions: your county tax office (they administer the exclusion) plus the state Form NCDVA-9

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. Call the DMVA at 844-624-8387 to find your County Veteran Service Officer, or find an accredited representative at VA.gov. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, parks, education, homes, hiring, burial) go to the specific office linked in that section, or start at milvets.nc.gov.

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