Best States for Disabled Veterans in 2026: Top 10 Ranked by Benefits
Your VA disability rating unlocks more than federal compensation—it opens the door to hundreds of state-level benefits that vary dramatically depending on where you live. The difference between the best and worst states for disabled veterans can be worth $10,000 to $50,000+ per year in tax savings, exemptions, and direct benefits. Here's our ranking of the top 10 states for disabled veterans in 2026, along with what makes each one stand out.
Find Your State Benefits: The Veterans Benefits Finder shows you every state-specific benefit you qualify for based on your rating and location. Each state page on our site has a detailed breakdown—use it to see exactly what you're eligible for.
How We Ranked the Best States
We evaluated all 50 states across five key benefit categories:
- Property tax exemptions – Full or partial exemptions for disabled veterans
- Income tax benefits – State income tax exemptions on military retirement and disability pay
- Vehicle benefits – Free registration, reduced fees, disabled veteran license plates
- Education benefits – State-funded tuition waivers for veterans and dependents
- Additional perks – Hunting/fishing licenses, state park passes, employment preferences
States with no income tax automatically earn a major advantage, since they don't tax any income—including retirement pay, disability compensation, or civilian earnings.
Top 10 States for Disabled Veterans in 2026
1. Texas
Why Texas leads: Texas combines no state income tax with one of the most generous property tax exemptions in the country. Veterans with a 100% disability rating receive a full property tax exemption on their primary residence—saving homeowners $5,000 to $15,000+ annually depending on the county.
Key benefits:
- 100% property tax exemption for 100% disabled veterans
- Partial property tax exemptions starting at 10% rating
- No state income tax
- Free driver's license and vehicle registration
- Hazelwood Act: 150 hours of free tuition at state colleges (transferable to dependents)
- Free hunting and fishing licenses
2. Florida
Why Florida ranks #2: Florida pairs no income tax with strong veteran-specific programs and a large veteran population that drives political support for benefits.
Key benefits:
- Full property tax exemption for 100% P&T (Permanent & Total) veterans
- $5,000 property tax exemption for all veterans with service-connected disability
- No state income tax
- Free vehicle registration and license plates for disabled veterans
- Tuition waivers at state universities for eligible veterans
- Free state park admission
3. Alaska
Why Alaska ranks high: Beyond having no state income tax or sales tax, Alaska pays residents an annual Permanent Fund Dividend (typically $1,000–$2,000+). Combined with strong veteran property tax exemptions, Alaska offers unique financial advantages.
Key benefits:
- Property tax exemption on first $150,000 of assessed value for disabled veterans
- No state income tax or sales tax
- Annual Permanent Fund Dividend for all residents
- Free hunting and fishing licenses for disabled veterans
- Employment preference for veterans in state jobs
4. South Dakota
Why South Dakota stands out: Another no-income-tax state, South Dakota offers competitive property tax exemptions and low cost of living that stretches your VA compensation further.
Key benefits:
- Full property tax exemption for 100% disabled veterans (on first $150,000)
- No state income tax
- Free motor vehicle registration
- Reduced hunting and fishing license fees
- Low overall cost of living amplifies benefit value
5. Wyoming
Why Wyoming ranks #5: With no state income tax and property tax exemptions for disabled veterans, Wyoming is a financially friendly state. Its low population also means less competition for state veteran services.
Key benefits:
- Property tax exemption up to $3,000 for veterans with 100% rating
- No state income tax
- Free vehicle registration for disabled veterans
- Free hunting and fishing licenses
- Veterans preference in state employment
6. Virginia
Why Virginia surprises many: Despite having a state income tax, Virginia's proximity to Washington D.C., exceptional VA healthcare facilities, and generous benefit structure make it a top choice—especially for veterans working in government or defense.
Key benefits:
- Full property tax exemption for 100% P&T veterans (statewide, implemented by each locality)
- Disability income fully exempt from state income tax
- Free vehicle registration for disabled veterans
- Virginia Military Survivors and Dependents Education Program
- Strong state veteran employment programs
7. New Hampshire
Key benefits:
- $4,000 property tax credit for veterans with total disability
- No state income tax on wages or salary
- Free state park access for disabled veterans
- Free hunting and fishing licenses for service-connected disabled veterans
- Strong local veterans' services network
8. Illinois
Why Illinois ranks here: Illinois offers a full property tax exemption for 70%+ rated veterans and has one of the most generous education benefit packages for veterans' dependents.
Key benefits:
- Full property tax exemption for veterans rated 70%+ (not just 100%)
- Illinois Veterans' Grant: free tuition at state universities for veterans
- Standard Homeowner Exemption for all veterans
- Free vehicle registration for disabled veterans
- MIA/POW scholarship program for dependents
Note on Illinois: While property tax benefits are excellent, Illinois has a relatively high cost of living and state income tax rate. Factor in total cost of living when comparing states—a high property tax exemption may be offset by higher everyday expenses.
9. Nevada
Key benefits:
- Property tax exemption for disabled veterans (varies by rating and assessed value)
- No state income tax
- Free disabled veteran license plates
- Reduced hunting and fishing license fees
- Veterans preference in state employment
- Growing veteran community and VA services
10. Tennessee
Key benefits:
- Property tax exemption for 100% disabled veterans
- No state income tax on wages or salary
- Free disabled veteran license plates and registration
- Tennessee Veterans Education Transition Support (VETS) program
- Free hunting and fishing licenses for disabled veterans
Quick Comparison: Top 10 States at a Glance
| State | Income Tax | 100% PT Property Tax Exemption | Free Vehicle Reg | Education Benefits |
|---|---|---|---|---|
| Texas | None | Full | Yes | 150 hrs free tuition |
| Florida | None | Full | Yes | Tuition waivers |
| Alaska | None | Partial ($150K) | No | Limited |
| South Dakota | None | Full ($150K cap) | Yes | Limited |
| Wyoming | None | Partial ($3K) | Yes | Limited |
| Virginia | Exempt on disability | Full | Yes | Dependents program |
| New Hampshire | None on wages | $4K credit | No | Limited |
| Illinois | Standard rate | Full (70%+) | Yes | Free tuition |
| Nevada | None | Partial | Yes | Limited |
| Tennessee | None on wages | Full | Yes | VETS program |
Key Benefit Categories Explained
Property Tax Exemptions
This is often the single most valuable state benefit for disabled veterans. In states like Texas, a 100% P&T veteran with a $350,000 home saves $8,000–$12,000+ per year in property taxes. Even partial exemptions at lower rating levels provide meaningful savings.
Income Tax Exemptions
Seven states have no state income tax at all: Alaska, Florida, Nevada, New Hampshire (wages), South Dakota, Tennessee (wages), Texas, Washington, and Wyoming. For veterans with significant retirement pay or civilian income, this alone can save thousands annually.
Vehicle Benefits
Many states offer free vehicle registration, reduced fees, and special disabled veteran license plates. While the dollar value is smaller ($50–$200/year), these benefits add up over time and are easy to claim.
Education Benefits
Some of the most valuable state benefits are tuition waivers for veterans and their dependents. Texas's Hazelwood Act (150 credit hours free) and Illinois's Veterans' Grant can save families $30,000–$100,000+ in college costs.
Hunting, Fishing, and Recreation
Most states offer free or reduced hunting and fishing licenses for disabled veterans. Many also provide free state park passes. While modest individually, these benefits reflect a state's overall commitment to veteran support.
How to Find Benefits in Your State
Every state offers a unique mix of benefits, and your eligibility depends on your specific disability rating, service history, and residency status. What works best for a 100% P&T veteran is very different from what matters most to a veteran rated at 30%.
The Veterans Benefits Finder takes your complete profile into account and shows you every state-specific benefit you qualify for—not just the highlights. Each state page on our site includes detailed eligibility requirements, application links, and estimated values.
Discover Your Benefits: Complete your free benefits profile to see a personalized list of every federal, state, and local benefit available to you. Whether you're planning a move or just want to make sure you're not missing anything in your current state, the results will show you exactly what's on the table.
Planning a Move? Consider the Full Picture
If you're considering relocating to maximize your benefits, look beyond just tax savings:
- Cost of living – A tax-free state with high housing costs may not save you money overall
- VA healthcare access – Proximity to VA medical centers and clinics matters
- Climate and lifestyle – Quality of life should factor into your decision
- Employment opportunities – If you're working, job market strength matters
- Veteran community – States with large veteran populations often have stronger support networks and advocacy
The best state for you depends on your unique circumstances. Use the benefits data as one input alongside your personal priorities to make the right decision for your family.
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