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How U.S. States Support Veterans with Tax Breaks

Many U.S. states and territories offer special tax breaks to Veterans, their families, and survivors. Whether you’re a Veteran, a family member, or someone leaving the military, this guide makes things easier to understand. Benefits are listed alphabetically by state and territory to help you find information fast. Everything here is up to date at the time of publishing.

Income Tax for Military Members

If you’re in the military and live in California but are stationed outside the state, you don’t have to pay California state income tax. But if you are stationed in California, your military pay is taxable.

Business Tax Savings

Veterans who were honorably discharged and sell items from a set location may not have to pay local, county, or state business license fees. However, this doesn’t apply if you’re selling alcohol.

Property Tax Exemptions

Veterans who were honorably discharged—or their surviving spouse or parent who gets a pension—can get a $4,000 property tax exemption. But the property must not be worth more than $5,000 ($10,000 if married).

Extra Help for Disabled Veterans

If a Veteran has a 100% disability, or if their surviving spouse is not remarried, they may get a bigger property tax exemption. There are also extra benefits for those with low incomes. Check with your local property tax office for details.

Local Tax

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