North Carolina Veteran State Benefits 2026: Complete Guide
North Carolina offers qualifying veterans a comprehensive package of state-level benefits in 2026, including a full state income tax exemption on military retirement pay, a property tax exclusion on the first $45,000 of a permanent residence’s appraised value for 100% permanently and totally disabled veterans, in-state tuition for qualifying honorably discharged veterans, the Scholarship for Children of Wartime Veterans, free or discounted hunting and fishing licenses, specialized license plates, and access to state veterans homes and cemeteries . Key proposed changes, such as an increased property tax exclusion under the Heroes Homestead Act, remain pending legislation as of 2026 .
Quick Facts
| Item | Details |
|---|---|
| Benefit | Property tax exclusion, education benefits, employment preference, recreation benefits, state veterans homes, state veterans cemeteries, driver’s license/plate benefits |
| Eligibility | Varies by program; generally requires North Carolina residency, honorable discharge, and specific criteria (e.g., disability rating, wartime service) |
| Application | County Veterans Service Office, North Carolina Department of Military and Veterans Affairs (NCDMVA), county tax office, or other relevant state agency |
| Processing Time | Varies by program |
| Official Agency | North Carolina Department of Military and Veterans Affairs (NCDMVA) |
| Required Forms | Varies by program; e.g., AV-9 and NCDVA-9 for property tax exclusion |
| Updated For | 2026 Legislative Session; SB 128, SB 118, SB 816 |
What Is the North Carolina Department of Military and Veterans Affairs (NCDMVA)?
The North Carolina Department of Military and Veterans Affairs (NCDMVA) is the state agency responsible for administering and connecting veterans to state-level benefits.
What it is: NCDMVA serves as a central resource for veterans and their families, providing information, assistance, and advocacy . The agency manages services including the State Veterans Homes, State Veterans Cemeteries, the Scholarship for Children of Wartime Veterans, the State Approving Agency for education programs, and a network of Veterans Service Officers.
Who qualifies: All North Carolina veterans and their families are eligible to seek assistance and information from NCDMVA.
Why it matters: NCDMVA is the primary gateway to accessing North Carolina’s state-specific veteran benefits. Veterans Service Officers, located within counties and through NCDMVA, provide free, expert assistance in applying for these benefits.
What to do next: Visit the NCDMVA website to locate a Veterans Service Officer near you or find information on specific benefit programs.
Tax Benefits for North Carolina Veterans
North Carolina provides significant tax benefits to veterans, particularly regarding property taxes and income taxes.
Property Tax Exclusion for Disabled Veterans
Veterans May Qualify for Extra Benefits
Check available financial assistance, healthcare programs and other opportunities that may apply to you.
Check EligibilityNorth Carolina excludes a portion of the appraised value of a qualifying veteran’s permanent residence from property taxation .
What it is: The Disabled Veteran Property Tax Homestead Exclusion removes the first $45,000 of the appraised value of a permanent residence owned and occupied by a qualifying veteran (or their unmarried surviving spouse) from local property taxes . There is no income limit for this exclusion .
Who qualifies: To qualify, a veteran must have an honorable (or under honorable conditions) discharge and have a 100% permanent and total (P&T) service-connected disability, OR receive VA specially adapted housing benefits under 38 U.S.C. § 2101 . An unmarried surviving spouse of a qualifying veteran is also eligible . The benefit is not tiered for lower disability ratings .
Why it matters: This exclusion can save qualifying veterans hundreds or thousands of dollars annually in property taxes, making homeownership more affordable and stable.
What to do next: Contact your County Veterans Service Office to certify Form NCDVA-9. Submit this form along with Form AV-9 to your county tax office by June 1 of the tax year .
Pending Property Tax Legislation (2026)
North Carolina lawmakers have introduced legislation to increase the property tax exclusion for disabled veterans.
What it is: Senate Bill 128, the Heroes Homestead Act, would raise the homestead exclusion from $45,000 to **$76,500** . This bill was filed in February 2025 and would be effective for taxable years beginning on or after July 1, 2026 . Other proposed legislation sought to eliminate the cap entirely .
Current status: As of mid-2026, SB 128 and similar bills remain pending in committee. The current, enacted exclusion remains $45,000 .
Why it matters: If passed, this legislation would provide greater financial relief as property values rise.
Military Retirement Pay Income Tax Exemption
North Carolina fully exempts military retirement pay from state income tax .
What it is: Since 2021, North Carolina does not tax military retirement pay for retirees who served at least 20 years or were medically retired under 10 U.S.C. Chapter 61 . There is no dollar cap or age requirement for this exemption .
Who qualifies: Veterans who receive military retirement pay, including Survivor Benefit Plan (SBP) payments, are eligible .
Why it matters: This exemption can result in substantial tax savings for military retirees living in North Carolina.
Education Benefits for North Carolina Veterans and Families
North Carolina provides multiple education benefits, including in-state tuition and scholarships for veterans and their children.
In-State Tuition for Veterans
Qualifying veterans can attend North Carolina public colleges and universities at in-state tuition rates, regardless of their residency status .
What it is: The Military and Veteran Support Act (S.L. 2025-72) requires that a “qualifying veteran” admitted to a UNC constituent institution or a community college be charged the in-state tuition rate .
Who qualifies: A veteran must have served at least 90 days in the Armed Forces, received an honorable discharge, and meet at least one of the following :
Graduated from a North Carolina high school on or after January 1, 2004.
Served active duty with a permanent station in North Carolina for at least 90 continuous days.
Was awarded a Purple Heart.
Why it matters: This eliminates the 12-month residency requirement for in-state tuition, significantly reducing education costs for qualifying veterans.
What to do next: When applying to a UNC school or community college, present your DD-214 and documentation supporting your qualification to the admissions office.
Scholarship for Children of Wartime Veterans
The Scholarship for Children of Wartime Veterans provides financial assistance to eligible children .
What it is: The program offers up to eight semesters of tuition assistance at North Carolina public institutions for children of wartime veterans . Priority is given to “Class I” recipients (children of 100% disabled or deceased veterans) .
Who qualifies: Children of veterans who died or became disabled as a result of wartime service, were Prisoners of War, or died from a service-connected condition may be eligible .
Current status: Due to funding constraints, Spring 2026 awards are being prorated . However, legislation (SB 816) appropriates $10 million to support additional scholarships beginning in the 2026-27 academic year and authorizes an increase in new applicants from 100 to 200 per class .
Why it matters: This scholarship helps ensure that the children of veterans who made the ultimate sacrifice or suffered significant disabilities have access to higher education.
What to do next: Apply through NCDMVA. Because of funding limits, apply early. Check the NCDMVA website for the latest application status .
Healthcare and Housing Benefits
North Carolina provides long-term care through State Veterans Homes and offers housing assistance.
North Carolina State Veterans Homes
NCDMVA operates four State Veterans Homes providing skilled nursing care to eligible veterans .
What it is: These homes provide full-time skilled nursing care, rehabilitation, and long-term care . The facilities are located in Salisbury, Black Mountain, Kinston, and Kernersville .
Who qualifies: A veteran must have served in the active Armed Forces with a discharge under honorable conditions, been a North Carolina resident for two years before applying, be disabled by age or disease, and be referred by a licensed physician . Fees are based on the cost of care and ability to pay .
Why it matters: These facilities offer affordable, high-quality long-term care options specifically for veterans.
North Carolina State Veterans Cemeteries
North Carolina operates four state veterans cemeteries .
What it is: The cemeteries provide burial options for honorably discharged North Carolina resident veterans. They are located in Black Mountain, Goldsboro (Eastern Carolina), Jacksonville (Coastal Carolina), and Spring Lake (Sandhills) . Interment for veterans is typically free; spouses and eligible dependents may be buried for a modest fee .
Who qualifies: North Carolina resident veterans with an honorable discharge .
Why it matters: This ensures veterans and their families have accessible, respectful burial options.
Housing Assistance
North Carolina offers housing support through state and federal programs.
What it is: The NC Housing Finance Agency provides below-market rate mortgages through the NC Home Advantage Mortgage program. This can be combined with a VA Home Loan and offers up to 3% down payment assistance . State resources also help veterans facing homelessness .
Who qualifies: Veterans purchasing a primary residence in North Carolina.
Why it matters: This assistance can make homeownership more affordable and accessible.
What to do next: Contact the NC Housing Finance Agency or a participating lender for information.
Employment and Licensing Benefits
North Carolina supports veteran employment and provides driver’s license benefits.
Veterans Employment Preference
Veterans receive preference in North Carolina state employment.
What it is: Veterans and National Guard members receive a 10-point bonus on state employment exams . This preference applies to all state departments, agencies, and institutions for hiring, promotions, reassignments, transfers, and reduction-in-force . State government is the largest employer in North Carolina .
Who qualifies: Veterans and National Guard members.
Why it matters: This preference can be a decisive factor in securing a state government position.
Driver’s License and CDL Waivers
North Carolina offers driver’s license benefits to veterans.
What it is: The Division of Motor Vehicles offers a Commercial Driver License (CDL) test waiver based on military training and experience . This allows service members with certain Military Occupational Specialties/Ratings to have their CDL knowledge and skills testing waived . A skills test waiver option is also available for those with relevant experience .
What to do next: Apply online or by mail using the North Carolina CDL Test Waiver/Even Exchange Military Application.
Recreation and License Benefits
North Carolina offers discounts and passes to help veterans enjoy the state’s recreational resources.
Hunting and Fishing Licenses
Veterans can obtain lifetime licenses at reduced rates.
What it is: Veterans with a 50% or greater service-connected disability rating may purchase lifetime hunting and fishing licenses at reduced rates .
What to do next: Contact the North Carolina Wildlife Resources Commission.
State Parks Pass
Veterans with a service-connected disability can receive a free annual pass to state parks .
What it is: The pass provides free entry and discounts on equipment rentals . A free Annual Pass is available to veterans with a 50%+ disability rating .
Specialty License Plates
Disabled veterans and other veterans are eligible for specialized license plates.
What it is: 100% disabled veterans qualify for a free Disabled Veteran license plate and free vehicle registration for one vehicle . Partially disabled veterans can get the plate at no additional fee . A variety of military and veteran license plates are available .
What to do next: Apply through the NCDMV.
Common Mistakes Veterans Make
Missing the property tax application deadline. The deadline for the Disabled Veteran Exclusion is June 1 . Late applications may be considered, but it is best to file on time.
Not using a County Veterans Service Officer. County VSOs provide expert, free assistance with claims and applications. Avoid paying for help with benefit applications.
Assuming you don’t qualify for the property tax exclusion. If you are 100% P&T, or are an unremarried surviving spouse of a veteran who was, apply. There is no income limit.
Failing to apply for VA Disability Compensation. Many state benefits are tied to a disability rating. Filing a claim for conditions related to your service can unlock these state benefits.
Not understanding the difference between federal and state benefits. The VA provides federal benefits; the state provides state benefits. You can receive both. Knowing the difference ensures you access all resources available to you.
Frequently Asked Questions
Does North Carolina tax military retirement pay?
No. North Carolina fully exempts military retirement pay from state income tax .
What is the North Carolina property tax exemption for disabled veterans?
North Carolina excludes the first $45,000 of the appraised value of a permanent residence owned by a 100% permanently and totally disabled veteran . There is no income limit . Proposed legislation would increase this amount .
How do I apply for the North Carolina disabled veteran property tax exclusion?
You must file Form NCDVA-9 and Form AV-9 with your county tax office. The NCDVA-9 must be certified by a County Veterans Service Office . The deadline is June 1 .
Who is eligible for in-state tuition in North Carolina?
Honorably discharged veterans who graduated from a NC high school on or after January 1, 2004, served active duty in NC for 90 continuous days, or were awarded a Purple Heart .
What is the Scholarship for Children of Wartime Veterans?
It provides up to eight semesters of tuition assistance to children of wartime veterans who were killed or disabled in service, were POWs, or died of service-connected causes . The program is subject to funding availability .
Does North Carolina have state veterans homes?
Yes. North Carolina operates four State Veterans Homes providing skilled nursing care in Salisbury, Black Mountain, Kinston, and Kernersville .
How many state veterans cemeteries are in North Carolina?
North Carolina has four state veterans cemeteries located in Black Mountain, Goldsboro, Jacksonville, and Spring Lake .
Do North Carolina veterans get state park discounts?
Yes. Veterans with a service-connected disability may receive a free annual pass to state parks .
What is the Heroes Homestead Act?
Senate Bill 128 proposes raising the disabled veteran property tax homestead exclusion from $45,000 to $76,500 . As of 2026, it is pending legislation .
Are there income limits for the North Carolina disabled veteran property tax exclusion?
No. There is no income limit for this program .
Key Takeaways
North Carolina fully exempts military retirement pay from state income tax .
The state offers a $45,000 property tax exclusion for 100% permanently and totally disabled veterans, with no income limit .
Pending legislation would increase the property tax exclusion to $76,500 .
Qualifying veterans are eligible for in-state tuition at state schools, with no residency requirement .
The Scholarship for Children of Wartime Veterans provides tuition assistance to eligible children .
The NCDMVA is the primary agency for state benefits and can connect you with a free County Veterans Service Officer .
Veterans can access a network of state veterans homes and cemeteries across the state .
Various recreation benefits, including free state park passes and discounted hunting/fishing licenses, are available .
Official Resources
North Carolina Department of Military and Veterans Affairs: milvets.nc.gov
NC General Assembly Bill Search: ncleg.gov
NC County Veterans Service Offices: Contact your local county office
NC Division of Motor Vehicles (NCDMV): ncdot.gov/dmv
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📌 Information provided as of June 2026. Always verify current eligibility and rules with official .gov sources.
This site is not affiliated with the U.S. Department of Veterans Affairs or any government agency. All information is for educational purposes only. Please visit VA.gov for official information.
