State file · KY
Veteran benefits in Kentucky
Kentucky exempts all military pay from state income tax, deducts up to $37,600 from the assessed home value of 100% disabled veterans, and runs four state veterans homes plus generous dependent tuition waivers. Here's the landscape, category by category.
Back to the state mapKentucky file
Financial benefits
Military pay not taxed
Effective January 1, 2010, all military pay received by active duty members, Reserve component members, and National Guard members is exempt from Kentucky income tax.
Pension income exclusion
Kentucky excludes up to $31,110 of taxable pension income reported in federal adjusted gross income, which covers retired military pay. Military survivor benefit plans are generally subject to state taxes.
DIC not taxed
Dependency and Indemnity Compensation is a tax-free monetary benefit paid to eligible survivors of service members who died in the line of duty.
Property tax relief
Veterans with a 100% disability rating receive a deduction of up to $37,600 from their home's assessed value, and homeowners who are 65 or older or totally disabled qualify for a homestead exemption against assessed home value.
Sales tax picture
Statewide sales tax is 6.0%, and counties cannot levy additional sales tax, so the combined average is 6.0%.
Recreation
Hunting & fishing license discounts
Veterans with a 50% or higher disability rating are eligible for discounted hunting, trapping, or fishing licenses, and Kentucky resident service members home on leave may fish free without a license.
State park accommodations
Permanently and totally disabled resident veterans pay no overnight accommodation fees at Kentucky state parks.
Education programs
Veteran dependent tuition waiver
Covers tuition at two-year, four-year, or vocational-technical schools operated by the Kentucky Department of Education for children, stepchildren, adopted children, spouses, and unmarried surviving spouses of qualifying veterans. A related exemption gives spouses and children under 26 of permanently and totally disabled Guard or Reserve members, war veterans, former POWs, or MIA service members a tuition waiver of up to 45 months.
National Guard Tuition Award Program
Kentucky National Guard members and their dependents are eligible for in-state tuition at Kentucky public colleges, full or part time.
Iraq and Afghanistan Service Grant
Students not eligible for Pell Grants whose parent or guardian died as a result of military service in Iraq or Afghanistan after September 11, 2001 — and who were under 24 or enrolled part time — may receive up to about $5,920 per year.
High school diploma program
Veterans of World War II, the Korean War, and the Vietnam War whose high school education was interrupted by service may receive a diploma. Kentucky also participates in the interstate compact that removes school-transfer barriers for military children.
Veteran housing
Kentucky State Veterans Homes
Kentucky operates state veterans homes at Hazard, Radcliff, Wilmore, and Hanson. Residents must be honorably discharged Kentucky residents, with monthly costs based on the veteran's ability to pay.
Employment & job training
State hiring preference
Veterans with an other-than-dishonorable discharge receive 5 points on state job examinations; disabled veterans receive 10 points.
Retirement credit for military service
Kentucky grants public retirement service credit for Armed Forces service during a national emergency: nine or more months counts as a full year, six to nine months as three-quarters, three to six months as one-half, and under three months as one-quarter of a year.
Reemployment protections
Public employees returning within 90 days of military duty or related hospitalization are restored to their former position with equivalent seniority, status, pay, and benefits, and Guard members receive leave for active duty or training with seniority preserved. USERRA provides parallel federal protections.
Burials & memorials
Burial fees
There is no burial fee for Kentucky resident veterans or veterans stationed in Kentucky.
National cemeteries in Kentucky
Kentucky hosts national cemeteries at Danville, Lebanon, Lexington, Louisville (Cave Hill and Zachary Taylor), Nancy (Mill Springs), and Nicholasville (Camp Nelson), plus the Evergreen Cemetery Soldiers' Lot in Southgate.
VA resources in Kentucky
Louisville Regional Benefits Office
The VA regional office serving Kentucky for benefits claims and questions.
Official siteLexington VA Medical Center
VA medical care for central Kentucky through the Cooper and Leestown divisions in Lexington.
Official siteCincinnati VA Medical Center – Fort Thomas
VA medical care for northern Kentucky, in Fort Thomas.
Official siteBefore you apply
- First-time applicants generally need a copy of their DD-214 or discharge paperwork — keep certified copies somewhere safe.
- Most programs require a discharge under other than dishonorable conditions; a dishonorable or bad-conduct discharge may bar eligibility.
- “Active service” has a specific definition for many programs — training periods don’t always count. When in doubt, ask the agency directly.
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