Tennessee Veteran Benefits 2026: A Comprehensive Guide

Tennessee Veteran Benefits 2026: Complete State Guide

Tennessee offers substantial benefits for its Veterans, including a no state income tax policy, robust property tax relief for disabled Veterans, and the Tennessee STRONG Act providing up to 100% tuition reimbursement for National Guard members. The state is also expanding benefits with the VALOR Act, which takes effect January 1, 2026, providing full property tax reimbursement and free lifetime hunting/fishing licenses for 100% disabled Veterans. The Tennessee Department of Veterans Services (TDVS) provides free claims assistance at over a dozen offices statewide.

Quick Facts

Income Tax Benefits

No State Income Tax

Tennessee has no general state income tax. Residents do not have to file an individual state income tax return <span class=””>. This means military retirement pay, VA disability compensation, Thrift Savings Plan (TSP) distributions, and Social Security benefits are completely tax-free at the state level .

Property Tax Benefits

Disabled Veteran Property Tax Relief

Tennessee provides significant property tax relief for eligible disabled Veterans and their surviving spouses. The program reimburses Veterans for taxes paid on their primary residence <span class=””>. The benefit is a reimbursement, not an exemption — Veterans still receive their tax bill and must pay it, then receive reimbursement from the state .

Current benefit: Tax relief calculated on up to $175,000 of the property’s market value .

VALOR Act (Effective January 1, 2026): Senate Bill 473 increases the market value cap to $250,000  and requires the state to reimburse eligible disabled Veterans and surviving spouses for all local property taxes on their primary residence, removing the current cap .

Who qualifies:

• Veteran must have served in the U.S. Armed Forces and received a discharge other than dishonorable 

• Must have a service-connected disability rating meeting one of the following criteria:

  • Total and permanent disability

  • 100% total and permanent disability due to being a prisoner of war (POW)

  • Paraplegia

  • Permanent paralysis of both legs and lower part of the body from traumatic injury or disease to the spinal cord or brain

  • Loss, or loss of use of, two or more limbs

  • Legal blindness 

Surviving spouse: The benefit transfers to the unremarried surviving spouse of a disabled Veteran who was eligible for property tax relief. The surviving spouse must solely or jointly own the property and use it as their home .

How to apply: Applications are made through the local County Trustee or city collecting official for properties inside city limits . Applications for tax relief are accepted through April 5 each year .

Tax-Free Motor Vehicle Sales to Service Members

Motor vehicles sold to certain service members and registered in Tennessee are exempt from sales and use tax .

Who qualifies:

• Service member on active duty stationed in Tennessee

• Service member in the Tennessee National Guard or Reserves in the Active Guard and Reserve (AGR) Program stationed in Tennessee

• Service member who has been called to active duty and stationed in a combat zone (exemption expires 90 days after return)

The service member must provide a copy of official orders documenting eligibility .

Motor Vehicle Tax Exemptions for Disabled Veterans

New or used vehicles sold to disabled Veterans who have a service-connected disability and receive a VA grant for a specially adapted vehicle are exempt from sales tax, registration fees, and local motor vehicle privilege taxes. The exemption is limited to the portion of the sales price that exceeds the amount of the grant .

Disabled Veteran License Plates

Disabled Veterans license plates cost nothing for the first plate. To qualify, Veterans must be considered permanently and totally disabled by the VA .

2026 VALOR Act update: The VALOR Act exempts eligible disabled Veterans from paying taxes and fees for the registration of one qualifying vehicle . This applies to a private passenger automobile, recreational vehicle, or specified truck .

Education Benefits

Tennessee STRONG Act Tuition Assistance

The Tennessee Support, Training, and Renewing Opportunity for National Guardsmen (STRONG) Act provides tuition reimbursement for Tennessee National Guard service members .

Coverage: 100% of the maximum resident undergraduate or graduate in-state tuition (based on UT Knoxville tuition rate) after Federal Tuition Assistance, scholarships, grants, and other financial aid have been calculated .

Limits:

• Up to 130 undergraduate semester hours

• Up to 40 graduate semester hours of study

Who qualifies:

• Currently serving in the Tennessee National Guard in good standing (not flagged) through the end of the academic term

• Does not have a previous degree at the level they are studying for

• Attends a Tennessee College of Applied Technology (TCAT), regionally accredited community college, four-year public university, or private school whose primary campus is in Tennessee

• Must use Federal Tuition Assistance first if eligible 

Academic requirements:

• 2.0 GPA minimum for undergraduate degrees

• 3.0 GPA for graduate degrees

• Satisfactory academic progress for certificates or diplomas

How to apply: Completed application packets (reimbursement request, billing statement, and grade report) must be completed within 45 days of the last day of class .

Contact: Air National Guard applications can be emailed to ng.tn.tnarng.mbx.ngtn-state-tuition-assistance-air@mail.mil. Call 615-313-0737 for more information.

Tennessee Helping Heroes Education Grant

The Helping Heroes Grant provides financial assistance to qualifying Veterans seeking higher education <span class=””>.

Grant amounts:

• $1,000 per semester for Veterans enrolled in 12+ semester hours

• $500 per semester for 6-11 semester hours

• Veterans enrolled in less than six semester hours are not eligible 

Total benefit: Veterans can receive a grant for eight full semesters (6-11 semester hours is considered a half semester) or until they earn a bachelor’s degree, whichever comes first .

Who qualifies:

• Current service member or honorably discharged Veteran

• Tennessee resident for one year prior to application

• Was awarded one of the following on or after September 11, 2001:

  • Iraq Campaign Medal

  • Afghanistan Campaign Medal

  • Global War on Terrorism Expeditionary Medal 

• Enrolled at a participating two or four-year postsecondary institution

• Has not earned a bachelor’s degree

• Not in default on a federal or state educational loan

• Not owe a refund on a federal or state student financial aid program

• In compliance with federal drug-free rules

• Not incarcerated 

Pending legislation (SB1188): A bill introduced in the 114th General Assembly would expand eligibility to include Veterans who have received any medal authorized by Congress for combat or heroism and would allow grants for certificate programs .

How to apply: Applications must be submitted each academic year using the Tennessee Student Assistance Corporation Online Application. Deadlines are:

• September 1 for fall enrollment

• February 1 for spring enrollment

• May 1 for summer enrollment 

Veterans must mail or fax their DD-214 to the Tennessee Student Assistance Corporation when they apply .

Early Class Registration

Tennessee resident Veterans who are students at a Tennessee public institution of higher education are eligible to register for classes prior to the general student population. Early registration uses the same procedures used by student athletes, disabled students, and honor students .

In-State Tuition for Veterans

Veterans who are not residents of Tennessee can still qualify for in-state tuition . Under the Tennessee VETS Act, in-state tuition is available to Veterans and dependents .

VETS Campus Designation

The Tennessee Veterans Education Transition Support (VETS) Act establishes a program of recognition for higher education institutions that allocate resources for Veterans’ successful transition from military service to college enrollment. Institutions receiving the VETS Campus designation prioritize outreach to Veterans and deliver services to create a supportive environment .

VETS Bravo Campus: Starting July 2024, VETS Campuses can become VETS Bravo Campuses. These analyze annual student veteran surveys, invest in a VETS Bravo Campus liaison, establish peer mentoring programs, and help military-affiliated students engage with the workforce .

Purple Star School Award

The Purple Star School Award recognizes schools that show a major commitment to students and families connected to the U.S. Armed Forces. Schools must appoint a school liaison specially trained to handle the unique challenges experienced by military families .

Honorary High School Diplomas for War Time Veterans

Honorary high school diplomas may be issued to Veterans who left a Tennessee high school before graduating to serve in the U.S. Armed Forces during World War I, World War II, Korea, or Vietnam and received an honorable discharge .

Employment Benefits

State Employment Veterans’ Preference

Tennessee provides strong employment preference for Veterans in state government hiring .

State hiring preference:

• Veterans who meet minimum qualifications must be invited to interview 

• If a Veteran’s skills, abilities, competencies, and knowledge are equal to another applicant’s, preference must be given to the Veteran 

• During layoffs, Veterans receive an additional 60 months of service credit added to their total months of state service 

• Application forms must include the option to declare veteran status 

Who qualifies:

• Honorably discharged from the Army, Navy, Air Force, Space Force, Marine Corps, or Coast Guard

• Members of reserve components who perform active federal service 

Spouses and surviving spouses:

• Spouses of 100% disabled Veterans

• Surviving spouses of Veterans who died in the line of duty and have not remarried

• Must be a qualified voter in Tennessee or have been a resident for two years 

Enforcement: Appointing authorities who pass over an eligible Veteran and select an eligible non-Veteran must file the reasons with the Commissioner of Veterans Services within 30 days .

Required documentation: Applicants must submit a DD-214 or other official documentation verifying honorable discharge .

Local Government Hiring Preference (Pending)

SB2428, introduced in the 114th General Assembly, would require local governmental entities to invite honorably discharged Veterans who apply for employment or promotion to interview and give preference if qualifications are equal . This bill was deferred in committee in March 2026 .

Employment Assistance Programs

The Tennessee Department of Labor and Workforce Development provides specialized employment services to Veterans, including job search assistance, resume workshops, and training programs . The Tennessee Reconnect Program helps Veterans and their family members return to school or training .

CDL Skills Test Waiver

Members and former service members can benefit from the CDL skills test waiver offered by the Tennessee Department of Safety and Homeland Security. Eligible applicants are required to pass only the written CDL knowledge exam and are not required to take the road skills test .

Recreation Benefits

Free Lifetime Hunting and Fishing Licenses (2026 VALOR Act)

The VALOR Act eliminates the $10 one-time fee for a permanent sport combination hunting and fishing license for disabled Veterans, allowing eligible Veterans to obtain it at no cost effective January 1, 2026 .

Current benefit: Veterans with a 100% permanent and total service-connected disability qualify for a $10 lifetime hunting and fishing license . Veterans with a 30% or higher service-connected disability incurred in war also qualify .

Who qualifies for the $10 license:

• 100% permanent and total service-connected disability OR

• 30%+ service-connected disability incurred in war 

Medal of Honor recipients: Receive free lifetime hunting and fishing licenses .

State Parks and Recreation Passes

Honorably discharged Veterans who are residents of Tennessee are eligible for a free Lifetime Sportsman License, which grants access to all state parks, campgrounds, day-use areas, and recreational facilities . Discounts of 25%-50% off cabin and campground stays are available depending on the season. Free camping and golfing is available on special days, including Veterans Day .

State Veterans Homes

Tennessee State Veterans Homes

Tennessee operates four State Veterans Homes providing long-term care to Veterans with an honorable discharge . A fifth home in Arlington is set to open in 2025 .

Locations:

• Four current homes (contact TDVS for specific locations)

• Arlington (opening 2025)

Eligibility:

• Served on active duty and received an honorable discharge

• Need for skilled nursing care

• Valid Tennessee residency 

Contact: Tennessee State Veterans Home Board

Burial Benefits

Tennessee State Veterans Cemeteries

The state operates five Veterans cemeteries, which provide free burial for Veterans and their eligible dependents .

Eligibility:

• Served on active duty and discharged under honorable conditions

• Tennessee resident at the time of death or entry into military service

Spouses, minor dependent children, and in certain cases, unmarried adult children with disabilities are eligible for burial .

License Plates and Driver’s Licenses

Veteran Designation on Driver’s License

Honorably discharged Veterans are eligible for a Veteran designation on their Tennessee driver’s license or ID card. To apply, Veterans must visit a Tennessee Driver Services Center and provide discharge papers .

Disabled Veteran License Plates

Disabled Veterans license plates cost nothing for the first plate. To qualify, Veterans must be considered permanently and totally disabled by the VA . The VALOR Act expands benefits to include exemption from registration taxes and fees for one qualifying vehicle .

Tax-Free Motor Vehicle Sales for Service Members

Motor vehicles sold to certain service members and registered in Tennessee are exempt from sales and use tax when stationed in Tennessee or deployed to a combat zone .

Tennessee Department of Veterans Services

Free Claims Assistance

The Tennessee Department of Veterans Services has trained staff who can assist Veterans, retired service members, and their families find and apply for Veterans’ benefits under federal, state, and local laws. All services are provided free of charge . Over a dozen offices are located throughout the state.

2026 Legislative Updates

VALOR Act (SB0473/HB0052)

The Veterans Assistance for Livelihood, Opportunity, and Relief (VALOR) Act takes effect January 1, 2026, and provides:

• Full property tax reimbursement for 100% disabled Veterans and surviving spouses (eliminating the $175,000 cap) 

• Increase in property tax relief market value cap to $250,000 

• Free lifetime hunting and fishing licenses for 100% disabled Veterans (eliminating the $10 fee) 

• Exemption from registration taxes and fees for one vehicle for 100% disabled Veterans 

Fiscal impact: The legislation is projected to increase state expenditures by over $32.8 million for property tax reimbursements .

Helping Heroes Grant Expansion (SB1188)

Pending legislation would expand the Helping Heroes Grant to include Veterans who have received any medal authorized by Congress for combat or heroism and allow grants for certificate programs .

Common Questions

Does Tennessee tax military retirement pay?
No. Tennessee has no state income tax, so military retirement pay, VA disability compensation, TSP distributions, and Social Security benefits are completely tax-free .

What property tax benefits do disabled Veterans get in Tennessee?
Disabled Veterans with 100% total and permanent disability, paraplegia, paralysis of both legs, loss of two limbs, or legal blindness qualify for property tax relief on up to $175,000 of market value. The VALOR Act (2026) increases this to $250,000 .

Does the VALOR Act eliminate property taxes for disabled Veterans?
Yes, effective January 1, 2026. The VALOR Act requires the state to reimburse eligible 100% disabled Veterans for all local property taxes on their primary residence .

What education benefits does Tennessee offer Veterans?
The STRONG Act provides up to 100% tuition reimbursement for National Guard members. The Helping Heroes Grant provides $1,000/semester for qualifying Veterans. Tennessee also offers in-state tuition, early class registration, and VETS Campus designations .

Do Tennessee Veterans get hiring preference for state jobs?
Yes. Veterans who meet minimum qualifications must be invited to interview. If qualifications are equal, Veterans get preference. Veterans also receive 60 months of additional service credit for seniority during layoffs .

What is the Tennessee Helping Heroes Grant?
It’s a $1,000 per semester grant (or $500 for 6-11 credit hours) for qualifying Veterans who received the Iraq Campaign Medal, Afghanistan Campaign Medal, or Global War on Terrorism Expeditionary Medal after 9/11 .

How do I apply for Tennessee property tax relief?
Apply through your local County Trustee or city collecting official. Applications are accepted through April 5 each year. For disabled Veterans, you’ll need VA disability rating documentation .

Can surviving spouses get property tax relief in Tennessee?
Yes. The unremarried surviving spouse of a disabled Veteran who was eligible for property tax relief can continue receiving the benefit if they own and occupy the property as their home .

What is the Tennessee STRONG Act?
The STRONG Act provides tuition reimbursement equal to 100% of in-state tuition at UT Knoxville rates for Tennessee National Guard service members, after other financial aid is applied .

What benefits are new for 2026?
The VALOR Act provides full property tax reimbursement, free lifetime hunting/fishing licenses, and vehicle registration fee exemptions for 100% disabled Veterans .

Key Takeaways

• No state income tax: Tennessee has no state income tax, making military retirement pay, VA disability, and TSP distributions tax-free .

• Property tax relief: Disabled Veterans receive tax relief on up to $175,000 of home value (increasing to $250,000 in 2026) .

• VALOR Act (2026): Beginning January 1, 2026, 100% disabled Veterans receive full property tax reimbursement, free lifetime hunting/fishing licenses, and vehicle registration fee exemptions .

• Education benefits: The STRONG Act provides up to 100% tuition for National Guard members; the Helping Heroes Grant provides up to $1,000/semester for qualifying Veterans .

• State employment preference: Veterans get preference in state hiring — those who meet minimum qualifications must be interviewed and receive preference when qualifications are equal .

• State Veterans Homes: Four state homes provide skilled nursing care for eligible Veterans; a fifth is opening in 2025 .

• State Veterans Cemeteries: Five state cemeteries provide free burial for Veterans and eligible dependents .

• Free claims assistance: The Tennessee Department of Veterans Services provides free help finding and applying for benefits .

Official Resources

• Tennessee Department of Veterans Services: tn.gov/veterans

• TDVS Veterans Service Office Directory: tn.gov/veterans

• Tennessee Comptroller Tax Relief: comptroller.tn.gov/pa/taxrelief

• Tennessee Student Assistance Corporation (Helping Heroes Grant): tn.gov/tsac

• Tennessee Higher Education Commission (VETS Act): tn.gov/thec

• VA Tennessee Healthcare: va.gov/find-locations

• VALOR Act Information (SB0473): capitol.tn.gov