Illinois Veteran Benefits 2026: Complete Guide to State Programs and Resources

Key Takeaways

• Illinois exempts all military retirement pay from state income tax and offers property tax exemptions of up to $250,000 EAV for veterans with 70%+ disability ratings
• The Illinois Veteran Grant (IVG) provides free tuition and fees at all public colleges and universities for eligible veterans—one of the nation’s best education benefits
• Five state veterans homes in Anna, Chicago, LaSalle, Manteno, and Quincy offer skilled nursing care starting at $1,720/month, with no cost for veterans rated 70-100%
• Disabled veterans with 10%+ ratings receive free hunting and fishing licenses plus free camping at Illinois state parks
• State employment preference adds points to examination scores for veterans seeking Illinois government jobs

Table of Contents

• Illinois Veteran Tax Benefits
• Property Tax Exemptions
• Education Benefits
• Healthcare and Veterans Homes
• Employment Benefits
• Recreation and Outdoor Benefits
• License Plates and Vehicle Benefits
• Burial Benefits
• Illinois Veteran Resources
• Frequently Asked Questions

Illinois is home to approximately 620,000 veterans and offers one of the most comprehensive state veteran benefit packages in the nation. From complete military retirement pay tax exemption to free tuition at public universities, the Prairie State provides substantial support for those who served.

This guide covers every Illinois veteran benefit available in 2026, including eligibility requirements, application processes, and contact information for the agencies that administer these programs.

Illinois Veteran Tax Benefits

Illinois offers significant tax advantages for veterans and military members, making it one of the more tax-friendly states for military retirees.

Military Retirement Pay Exemption

Illinois completely exempts military retirement pay from state income tax. This includes retirement pay from all branches of the U.S. Armed Forces, Survivor Benefit Plan (SBP) payments, and military disability retirement pay. Veterans do not need to take any special action—simply exclude this income when filing your Illinois state tax return.

Active Duty Pay Exemption

Military pay received while serving on active duty is also exempt from Illinois state income tax. This applies to basic pay, special pay, bonuses, and allowances that are included in federal adjusted gross income (AGI).

Military Spouse Residency Relief

Under the Military Spouse Residency Relief Act, a nonresident spouse who shares the same state of legal residence as a service member stationed in Illinois is exempt from Illinois income taxes on wages earned in Illinois. The spouse pays taxes only to their state of legal residence.

Deceased Service Member Tax Forgiveness

Illinois forgives any outstanding state income tax liability for service members who die while on active duty in a combat zone or as a result of injuries sustained in a combat zone.

Property Tax Exemptions

Illinois offers several property tax exemptions for disabled veterans, with some of the most generous benefits in the nation for those with higher disability ratings.

Standard Homestead Exemption for Veterans with Disabilities (SHEVD)

This exemption reduces the Equalized Assessed Value (EAV) of a disabled veteran’s primary residence based on their VA disability rating:

• 70% or higher disability: Up to $250,000 reduction in EAV (often results in complete property tax exemption)
• 50% to 69% disability: $5,000 reduction in EAV
• 30% to 49% disability: $2,500 reduction in EAV

For veterans in Cook County and other high-value areas, the $250,000 EAV exemption can eliminate property taxes entirely. Based on typical tax rates, veterans with 50-69% ratings save approximately $360-720 annually, while those with 30-49% ratings save approximately $180-360.

Eligibility Requirements

• Illinois resident who served in the U.S. Armed Forces, Illinois National Guard, or U.S. Reserve Forces
• At least 30% service-connected disability certified by the VA
• Own and occupy the property as primary residence
• Beginning in 2024, World War II veterans qualify regardless of disability rating

How to Apply

File Form PTAX-342 (Application for the Standard Homestead Exemption for Veterans with Disabilities) with your county’s Chief County Assessment Office. Required documentation includes DD-214 and a VA disability certification letter. The exemption must be renewed annually.

Surviving spouses who have not remarried can continue to receive this exemption or transfer it to a new primary residence.

Returning Veterans’ Homestead Exemption (RVHE)

Service members returning from active duty deployment in an armed conflict receive a $5,000 reduction in their home’s EAV for two consecutive tax years—the year they return and the following year. Contact your county assessor’s office to apply.

Specially Adapted Housing Exemption

Veterans who received federal funds for specially adapted housing due to permanent and total service-connected disabilities may qualify for up to a $100,000 reduction in assessed value. This exemption is also available for housing donated by charitable organizations that has been specifically adapted for a qualifying veteran’s disability.

Education Benefits

Illinois offers exceptional education benefits for veterans—the Illinois Veteran Grant is one of the best state-funded veteran education programs in the country.

Illinois Veteran Grant (IVG)

The IVG pays tuition and mandatory fees at all Illinois public two-year and four-year colleges and universities. This is an entitlement program, meaning eligible veterans will receive benefits regardless of state budget appropriations—schools must waive charges not covered by state funding.

Eligibility Requirements

• Illinois resident (lived in Illinois six months before entering service, OR returned to Illinois within six months of discharge, OR have been an Illinois resident for 15+ consecutive years after leaving active duty)
• At least one year of federal active duty service in the U.S. Armed Forces (or served in a foreign country during hostilities regardless of length)
• Honorable discharge
• Currently reside in Illinois

Benefits

• Covers tuition and mandatory fees at any Illinois public college or university
• Available for undergraduate or graduate study
• Up to 120 eligibility units (equivalent to four years of full-time enrollment)
• Can be combined with federal GI Bill benefits
• Does not cover housing, books, or non-mandatory fees

Apply through the Illinois Student Assistance Commission (ISAC) Student Portal. Allow 12 weeks for processing.

Illinois National Guard Grant (ING)

Illinois National Guard members (Army or Air) with at least one year of service who are actively serving may receive tuition and eligible fees at Illinois public colleges and universities. Benefits continue for members whose education was interrupted by federal active duty deployment of at least six months.

MIA/POW Dependents Scholarship

Dependents of veterans who are missing in action, prisoners of war, deceased from service-connected causes, or 100% service-connected disabled are eligible for full tuition at any Illinois public college or university. Benefits include:

• Full payment of tuition and certain fees
• Up to 120 eligibility units (four years of full-time enrollment)
• Spouses and children are eligible
• Children must begin using benefits before age 26

Educational Opportunity Grant for Dependents (Ages 10-18)

Illinois provides an annual $250 educational grant for children between ages 10 and 18 whose veteran parent is MIA, POW, died on active duty, or is 100% disabled due to service-connected disabilities. The grant helps cover educational expenses at state elementary schools, high schools, or vocational training schools.

University of Illinois Children of Veterans Scholarship

Each Illinois county may award one honorary scholarship annually at the University of Illinois for children of veterans who served in WWI, WWII, the Korean War, Vietnam Conflict, or any time after August 2, 1990. The scholarship provides four consecutive years of instruction without tuition charges. Preference is given to children of deceased and disabled veterans.

Healthcare and Veterans Homes

In addition to VA healthcare, Illinois operates five state veterans homes providing skilled nursing and residential care at significantly below-market rates.

Illinois Veterans Homes

Illinois operates veterans homes in five locations across the state:

• Anna: 50 skilled nursing beds and 6 independent living apartments (Southern Illinois)
• Chicago: Private rooms with modern amenities, opened 2022 (Cook County)
• LaSalle: Skilled nursing care (North-Central Illinois)
• Manteno: 304 beds on 122 acres, includes Prince Home for homeless veterans
• Quincy: Largest and oldest (founded 1886), 366 skilled nursing beds and 88 independent living apartments, newly renovated in 2025 with $300 million investment

Cost of Care

Monthly costs are significantly lower than comparable private facilities:

• Maximum monthly maintenance charge: $1,720 (as of June 2025)
• Cost is based only on veteran and spouse monthly income—assets are not considered
• Veterans with 70-100% service-connected disability pay nothing
• Inability to pay does not prevent admission

Eligibility

• Served at least one day during a recognized war period, or 24+ months continuous active duty if enlisted after September 7, 1980
• Honorable discharge
• Illinois resident for one year prior to application, or service credited to Illinois
• Disabled and unable to earn a living, or in need of nursing care

Widows and widowers of eligible veterans may also qualify for admission at the Anna and Quincy homes. Contact the nearest home’s Adjutant office to begin the application process.

Illinois Warrior Assistance Program (IWAP)

IWAP provides mental health resources and referrals for Illinois veterans and their families. The program connects veterans with counseling services, support groups, and crisis intervention resources.

County Veterans Assistance Commissions

Many Illinois counties operate Veterans Assistance Commissions (VACs) that provide emergency financial assistance, transportation to VA medical appointments, and help connecting with benefits programs. Contact your county VAC for available services.

Employment Benefits

Illinois provides significant employment advantages for veterans seeking state and local government positions.

State Employment Preference Points

The Illinois Personnel Code grants preference points on entrance examinations for state employment:

• Veterans: Additional points added to passing exam scores
• Disabled veterans: Additional preference points
• Spouse of veteran with service-connected death or disability: 10 points (if spouse cannot qualify for civil service employment due to disability)
• Parent of unmarried veteran with service-connected death or disability: 10 points

To receive preference points, submit your DD-214 to the CMS Veterans Outreach Program for verification.

Municipal Employment Preference

The Illinois Municipal Code also provides hiring and promotion preferences for veterans in municipal employment. Contact specific municipalities for their veteran preference policies.

Illinois State Police and Conservation Police

Educational requirements for joining the Illinois State Police or Illinois Conservation Police are waived for veterans who have been honorably discharged with a campaign medal of service in Afghanistan or Iraq. All other requirements still apply.

Firefighter and Police Officer Education Waivers

The educational requirements (Associate’s or Bachelor’s degree) for firefighter and police positions are waived for veterans who:

• Served honorably for 24 months (Associate’s waiver) or 36 months (Bachelor’s waiver) of active duty, or
• Served 180 days in combat, or
• Completed at least 60 credit hours toward a bachelor’s degree

American Job Centers

Illinois has over 30 American Job Centers providing employment services with priority of service for veterans. Services include job search assistance, resume help, training referrals, and connections to employers actively seeking to hire veterans. Visit IllinoisJobLink.com to search jobs and access services.

License Recognition for Military Training

Illinois expedites professional licensing for veterans with equivalent military training and experience. The Illinois Department of Public Health reviews applications from veterans with military emergency medical training for EMT licensure. Contact the relevant licensing board for your profession to learn about military credential recognition.

Recreation and Outdoor Benefits

Illinois offers substantial recreational benefits for veterans, particularly those with service-connected disabilities.

Free Hunting and Fishing Licenses

Disabled veterans with a 10% or greater service-connected disability rating receive free hunting and fishing licenses. This benefit applies regardless of state of residency. Disabled veterans are also exempt from purchasing a Habitat Stamp.

To claim this benefit, obtain a Veteran’s Disability Card from your nearest Illinois Department of Veterans Affairs Veteran Service Office. You’ll need to provide your DD-214 and current VA disability verification letter.

Half-Price Licenses for Veterans Who Served Abroad

Illinois resident veterans who served abroad or were mobilized to federal active duty can purchase fishing, hunting, or Sportsmen’s Combination licenses for half the regular price.

Service Member Fee Waivers

Service members who served abroad or were mobilized receive free camping, fishing, and hunting for one year for each year served (or portion thereof). Benefits include:

• Free camping at Illinois State Parks (excluding utilities and cabin fees)
• Free Combined Sportsman’s License and Habitat Stamp
• Free firearm deer permit

Service members must apply within two years of returning from abroad or release from mobilization.

Free Camping for Disabled Veterans and POWs

Illinois resident disabled veterans and former POWs receive free camping and admission at all Illinois Department of Natural Resources parks. This benefit extends to the veteran’s spouse, minor children, and grandchildren under 18 who are accompanying them.

To qualify, obtain a Veteran’s Disability Card from your local IDVA office with proof of disability rating or POW status.

Hunting Without License While on Leave

Active duty service members who entered the military from Illinois and remain Illinois residents may hunt without a license while on ordinary or emergency leave. However, a Federal Waterfowl Stamp and Illinois Habitat Stamp are still required for waterfowl hunting.

License Plates and Vehicle Benefits

Illinois offers 40 different special license plate designs honoring military service. These include plates for:

• Combat veterans and specific campaigns (Iraq, Afghanistan, Vietnam, Korea, WWII)
• Branch-specific plates (Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force)
• Medal recipients (Purple Heart, Bronze Star, Silver Star, Medal of Honor)
• Former POWs
• Gold Star families
• Disabled veterans

Visit the Illinois Secretary of State website for the complete list of available plates, eligibility requirements, and fees.

Veteran Designation on Driver’s License

Illinois veterans can add a “veteran” designation to their driver’s license or state ID card. This designation provides ready proof of veteran status when accessing benefits and services. Request the designation at any Secretary of State facility with your DD-214 or other proof of honorable discharge.

Burial Benefits

Illinois provides burial options and honors for veterans who have served.

State Veterans Cemeteries

Illinois operates veteran cemeteries at:

• Illinois Veterans Home Cemetery – Quincy
• Illinois Veterans Center Cemetery – Manteno

Eligible veterans and their dependents may be interred at these locations. Contact the facilities directly for eligibility and arrangements.

National Cemeteries in Illinois

The VA operates several national cemeteries in Illinois, including Abraham Lincoln National Cemetery in Elwood, Rock Island National Cemetery, and others. These provide burial at no cost to eligible veterans and their dependents.

Military Funeral Honors

Honorably discharged veterans are entitled to military funeral honors, including flag folding and presentation and the playing of Taps. Contact your local Veteran Service Officer or the funeral home to arrange honors.

Illinois Veteran Resources

Illinois Department of Veterans Affairs (IDVA)

The Illinois Department of Veterans Affairs is the primary state agency serving veterans. IDVA operates full-time and part-time Veteran Service Offices in 80 of Illinois’ 102 counties. Veteran Service Officers help veterans and their families:

• File VA disability claims and appeals
• Access state and federal benefits
• Navigate healthcare options
• Connect with education and employment programs
• Obtain required documentation (DD-214, disability verification)

Find your nearest Veteran Service Office on the IDVA website.

VA Facilities in Illinois

Illinois is served by multiple VA healthcare facilities including:

• Jesse Brown VA Medical Center – Chicago
• Edward Hines Jr. VA Hospital – Hines
• Marion VA Medical Center – Marion
• VA Illiana Health Care System – Danville
• Numerous outpatient clinics throughout the state

Military Installations

Illinois hosts several military installations including:

• Scott Air Force Base (home of U.S. Transportation Command)
• Rock Island Arsenal
• Naval Station Great Lakes (Navy’s boot camp)

Veterans and retirees may access commissary, exchange, and MWR facilities at these installations with proper identification.

Frequently Asked Questions

This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Illinois Department of Veterans Affairs or any government agency. For official benefit information and applications, visit veterans.illinois.gov or contact your local Veteran Service Office.