KEY TAKEAWAYS
- Military retired pay is totally exempt from New York State, New York City and Yonkers income tax, with no age or income limit.
- New for 2026: towns, cities, counties and school districts can now fully exempt the home of a veteran rated permanently and totally disabled, for assessment rolls from October 1, 2026. It’s optional, so ask your assessor whether yours adopted it.
- The Alternative Veterans’ Exemption cuts assessed value by 15% for wartime service, another 10% for combat or an expeditionary medal, and half your disability rating, up to local caps.
- Veterans with four years of active duty now qualify for the Veterans Tuition Award even without combat service, covering up to SUNY tuition.
- Every honorably discharged New York veteran gets a free Lifetime Liberty Pass for state parks, pools and golf; the 40% disability requirement was dropped in 2024.
- New York Veteran Benefits at a Glance
- New York Income Tax for Veterans and Service Members
- New York Property Tax Exemptions for Veterans
- Education Benefits
- Employment Benefits
- Licenses, Plates and Free Thruway Travel
- State Parks, Hunting and Fishing
- New York State Veterans’ Homes
- Cemetery and Burial Benefits
- Other State Benefits and Help
- How to Claim New York Veteran Benefits, Step by Step
- Frequently Asked Questions
New York doesn’t tax military retired pay at the state or city level, and its property tax exemptions for veterans are among the most widely offered in the country. The details matter more than in most states, though, because almost every property tax benefit is set by your county, city, town, village or school district. This guide explains each New York benefit, what’s new for 2026 — including the new full exemption for veterans rated permanently and totally disabled — and how to claim it.
New York Veteran Benefits at a Glance
| If you are | You may get |
|---|---|
| Any honorably discharged New York veteran | Tax-free military retired pay, the Lifetime Liberty Pass, a veteran designation on your license, civil service preference points |
| A wartime, combat or Cold War veteran who owns a home | The Alternative or Cold War veterans’ property tax exemption, where your locality offers it |
| Rated 10% or higher | 10 civil service points instead of 5, and a larger property tax reduction based on your rating |
| Rated 40% or higher | $5 hunting, fishing or trapping licenses and free bowhunting and muzzleloading privileges |
| Rated permanently and totally disabled | A full property tax exemption on your home, where your locality has adopted it |
| A veteran with a VA-funded adapted vehicle | Fee-exempt vehicle registration and free travel on the Thruway |
| A Gold Star family member | The Lifetime Liberty Pass, the Gold Star parent annuity and, for children and spouses, the MERIT Scholarship |
New York Income Tax for Veterans and Service Members
Military Retired Pay: Totally Exempt
According to the New York Department of Taxation and Finance, military pension payments to retirees or their beneficiaries are totally exempt from New York State, New York City and Yonkers income taxes. There is no age requirement and no income cap. Our military pension calculator estimates what that retired pay will be. VA disability compensation isn’t taxable either.
Active-Duty, Guard and Reserve Pay
- Residents: military pay is subject to New York tax to the same extent it’s subject to federal tax, so combat zone pay that’s tax-free federally is tax-free in New York too.
- Nonresidents stationed in New York: your military pay isn’t subject to New York tax, though a civilian job you hold in the state can be.
- Guard and organized militia: pay for active service within New York State can be subtracted on Form IT-225 (code S-126). Pay for regular duty, such as annual two-week training, doesn’t qualify.
- Military spouses: a nonresident spouse living in New York only to be with a service member stationed here can exclude those wages from New York-source income under the Servicemembers Civil Relief Act.
New York Property Tax Exemptions for Veterans
New York has four veterans’ property tax exemptions. Each one is offered by local taxing jurisdictions — counties, cities, towns, villages and school districts — which decide whether to offer it and set the dollar caps, so the same veteran can get different amounts on different parts of the same tax bill. None is automatic: you apply to your assessor. The Department of Taxation and Finance veterans exemption page has the full rules.
New: Full Exemption for Permanently and Totally Disabled Veterans
A new law, Real Property Tax Law section 458-a(11), lets each municipality and school district fully exempt the primary residence of a veteran whom VA considers permanently and totally disabled as a result of military service. Where it’s adopted, the exemption covers property taxes, special ad valorem levies and special assessments. It applies to assessment rolls based on taxable status dates on or after October 1, 2026.
- Who qualifies: a veteran who meets the Alternative Veterans’ Exemption requirements, was discharged under honorable conditions, and has VA paperwork that specifically says the disability is permanent and total and results from service.
- Where: only in localities that choose to offer it. Ask your assessor, or your village assessor if you live in a village, whether your county, town, city and school district have adopted it.
- How to apply: file Form RP-458-a with your assessor (instructions are in RP-458-a-I). You only need to apply once.
If your locality hasn’t adopted it, the Alternative Veterans’ Exemption below still applies. Our 100% VA disability guide explains the difference between a 100% rating and permanent and total status.
Alternative Veterans’ Exemption
The Alternative Veterans’ Exemption is the most widely offered. It reduces the assessed value of your primary residence by:
- 15% if you served during a time of war
- An additional 10% if you served in a combat zone, including expeditionary medal recipients
- An additional amount equal to half your service-connected disability rating, whether or not you served in combat
Each percentage is subject to maximum dollar limits set by each taxing jurisdiction. Reenlisted service members with at least 10 years of service can count as veterans. Unremarried surviving spouses and Gold Star parents can also be eligible.
Cold War Veterans’ Exemption
Veterans who served between September 2, 1945 and December 26, 1991 can get a 10% or 15% reduction in assessed value, depending on what the locality adopted, plus a disability reduction equal to half the rating. The general part of the Cold War exemption lasts 10 years unless the locality makes it indefinite; the disability part has no time limit.
Eligible Funds Exemption
A partial exemption for property bought with eligible funds, such as a veteran’s pension, bonus or insurance money. Homes bought with a VA specially adapted housing grant can qualify for a full exemption.
Deadlines and How to Apply
In most communities the deadline to file is March 1, but dates vary, so confirm with your assessor. In New York City, the Department of Finance takes applications online from September 28 to March 15 for the tax year starting the following July 1.
Education Benefits
Veterans Tuition Award
The Veterans Tuition Award pays tuition up to the average undergraduate tuition at state-operated SUNY schools, or your actual tuition if lower. Since July 1, 2025, veterans with at least four years of active-duty service qualify even without combat service. Combat veterans of Vietnam, the Persian Gulf or Afghanistan still qualify, as do Guard members with four or more years of active-duty deployment or an expeditionary medal.
- Covers undergraduate, graduate and approved vocational programs at SUNY, CUNY, private colleges and participating vocational schools in New York
- Full-time and part-time study (part-time awards are prorated); up to 4 years of undergraduate study, 3 years of graduate study or 2 years of vocational training
- You must have lived in New York for 12 continuous months, and not have a dishonorable discharge
- Degree students file the FAFSA and TAP application first, then the VTA application
MERIT Scholarship
The MERIT Scholarship pays the cost of attendance, up to the average cost at state-operated SUNY schools, for the children, spouses and financial dependents of service members who died, were declared missing in action, or became severely and permanently disabled from an injury or illness while performing military duties. The service member must have been a New York resident at the time. There’s no income limit; students must enroll full time.
Regents Award for Children of Deceased and Disabled Veterans
A $450-a-year award for undergraduates whose parent served in wartime and died, became severely disabled, or was a prisoner of war or missing in action.
National Guard Tuition: RIRP
The Recruitment Incentive and Retention Program pays tuition up to SUNY rates for eligible New York National Guard members, capped at $1,700 a semester and $3,400 a year, according to the official New York benefits summary. Federal tuition help and the Post-9/11 GI Bill can cover the rest.
In-State Tuition
Federal law requires New York’s public colleges to charge in-state tuition to veterans and eligible family members using the Post-9/11 or Montgomery GI Bill who live in New York.
Employment Benefits
Civil Service Veterans’ Preference
| Open-competitive exam | Promotion exam | |
|---|---|---|
| Veteran | 5 points | 2.5 points |
| Disabled veteran (10%+ VA rating) | 10 points | 5 points |
Points are added to a passing score, and you can use the preference only once. You need an honorable discharge and active-duty service other than for training.
The 55-c Program
Up to 500 entry-level state positions can be filled by qualified wartime veterans with a service-connected disability without a civil service exam. You still need to meet the job’s minimum qualifications; apply through the state’s civil service veterans portal.
Licenses, Plates and Free Thruway Travel
- Veteran designation: honorably discharged veterans can add a veteran designation to a driver license or non-driver ID at no additional fee (regular transaction fees apply). It also proves eligibility for the Lifetime Liberty Pass.
- Fee-exempt registration: veterans who receive VA funds to buy or adapt a vehicle, and Medal of Honor and POW plate holders, pay no registration fees.
- Plates: the Disabled Veteran and Purple Heart plates cost $28.75 up front with no annual renewal fee; the Medal of Honor plate is free.
- Free Thruway travel: veterans with a fee-exempt registration for a VA-funded adapted vehicle can travel the Thruway free through the E-ZPass Disabled Veteran Non-Revenue Plan. Apply with form TA-W5175 and a copy of the registration, and reapply every two years when the registration renews. Eligibility depends on that registration, not on your rating.
State Parks, Hunting and Fishing
Lifetime Liberty Pass
Since April 2024 the Lifetime Liberty Pass is free to every New York resident veteran with a discharge other than dishonorable, and to Gold Star parents, spouses and minor children. It gives free vehicle entry to most state parks and DEC day-use areas, many boat launches and historic sites, free greens fees at state-run golf courses, free pool entry and discounted camping and cabins. A DMV license with the veteran designation works as the pass at staffed sites; otherwise, order a free pass online with your DD-214.
Hunting and Fishing Licenses
Resident veterans rated 40% or higher can buy a $5 fishing, hunting or trapping license; after the first one each year, other licenses of those types are free. You also get free bowhunting and muzzleloading privileges (with a base hunting license) and preference in Deer Management Permit selection. Show your VA letter at a license agent the first time; after that you can buy online.
Free Empire Pass for Activated Guard and Reserve Families
New York residents in the National Guard or Reserves on active duty in support of the war on terrorism can get one free Empire Pass per household for day-use entry to state parks and DEC facilities.
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New York State Veterans’ Homes
New York has five state veterans’ nursing homes. According to the Department of Veterans’ Services, veterans pay no out-of-pocket cost for routine skilled nursing care, with no means test, and keep their Social Security and pension income. VA pays the full cost for veterans with a 70% or higher service-connected rating.
| Home | Address | Phone |
|---|---|---|
| St. Albans | 178-50 Linden Blvd., Jamaica | 718-990-0353 |
| Batavia | 220 Richmond Avenue, Batavia | 585-345-2049 |
| Oxford | 4211 State Highway 220, Oxford | 607-843-3121 |
| Montrose | 2090 Albany Post Road, Montrose | 914-788-6000 |
| Long Island (Stony Brook) | 100 Patriots Road, Stony Brook | 631-444-8387 |
To be admitted, a veteran needs skilled nursing care, an honorable discharge, at least 30 days of active service, and either entered service from New York or lived in the state for a year before applying. Spouses married to an eligible veteran for at least a year can also be admitted, and unremarried surviving spouses and Gold Star parents can apply after veterans.
Cemetery and Burial Benefits
The New York State Veterans Cemetery – Finger Lakes covers 162 acres along Seneca Lake in Romulus, next to Sampson State Park. Veterans discharged under other than dishonorable conditions, their spouses and eligible dependent children can be buried there; most enlisted members who entered after September 7, 1980 need 24 months of service unless killed in action or discharged for disability. The cemetery provides a marble headstone and a 30-minute committal service. Contact the cemetery about the fee for dependents, or call DVS at 888-838-7697.
- Supplemental burial allowance: up to $6,000 toward funeral and burial costs not covered by the federal government, for families of service members who were New York residents and died in a combat zone, while receiving hazardous duty pay, or from wounds received there.
- Indigent veterans: the state reimburses up to $2,000 to a veterans’ organization that buries an indigent veteran at a county’s request.
- National cemeteries: VA also runs national cemeteries in New York, including Calverton and Long Island on Long Island and Gerald B.H. Solomon Saratoga near Albany.
Other State Benefits and Help
- Blind annuity: legally blind wartime veterans who live in New York, and their unremarried surviving spouses, may qualify for an annual annuity. The blindness doesn’t have to be service-connected.
- Gold Star parent annuity: New York pays an annuity to each Gold Star parent of a service member who died in service.
- Veterans Benefits Advisors: the Department of Veterans’ Services has advisors — all veterans themselves — who help with state and VA claims for free. Call 888-838-7697.
- County veterans service agencies: every county has one, and they help with claims and local programs at no cost.
VA runs medical centers and clinics across the state, from New York City and Long Island to Albany, Syracuse, Buffalo and Batavia. If you haven’t enrolled, apply for VA health care online; our VA health care enrollment guide explains priority groups.
How to Claim New York Veteran Benefits, Step by Step
- Get your documents: your DD-214 and a VA benefit summary letter that shows your rating and, if it applies, that it’s permanent and total.
- Add the veteran designation to your license at the DMV; it opens the Lifetime Liberty Pass and proves your status elsewhere.
- File for property tax exemptions with your assessor (Form RP-458-a for the Alternative and new P&T exemptions) before your local deadline, usually March 1, or March 15 in New York City.
- Apply for education awards through HESC: FAFSA and TAP first, then the Veterans Tuition Award or MERIT application.
- Get free help: a DVS Veterans Benefits Advisor or your county veterans service agency can check what else you qualify for.
RELATED READING
New Jersey Veteran Benefits: Complete State Guide →
Next door, New Jersey fully exempts the home of a 100% P&T veteran statewide rather than by locality.
100% VA Disability: Pay, Benefits and How to Qualify →
What permanent and total status means, and why it matters for New York’s new exemption.
Compare New York with every other state’s taxes and property tax benefits.
Frequently Asked Questions
No. Military pension payments to retirees or their beneficiaries are totally exempt from New York State, New York City and Yonkers income taxes, with no age or income limit. VA disability compensation isn’t taxable either.
They may not, depending on where they live. A new law lets each municipality and school district fully exempt the primary residence of a veteran VA rates permanently and totally disabled from service, for assessment rolls from October 1, 2026. It is optional, so ask your assessor whether your county, town, city and school district adopted it, and apply with Form RP-458-a. Where it isn’t offered, the Alternative Veterans’ Exemption still reduces assessed value.
There are four, all offered by local taxing jurisdictions: the Alternative Veterans’ Exemption (15% for wartime service, 10% more for combat, plus half your disability rating, up to local caps), the Cold War Veterans’ Exemption (10% or 15% plus a disability amount), the Eligible Funds Exemption, and the new full exemption for permanently and totally disabled veterans. Apply to your assessor, usually by March 1.
Degree students complete the FAFSA and the TAP application first, then the Veterans Tuition Award application through HESC. Vocational students start with the VTA application. You must be a New York resident for 12 continuous months and have at least four years of active duty or qualifying combat service.
Yes. Since April 2024 the Lifetime Liberty Pass is free to every New York resident veteran with a discharge other than dishonorable, and to Gold Star families. It covers vehicle entry to most state parks, pools and golf greens fees, plus discounted camping. A DMV license with the veteran designation works as the pass at staffed sites.
Veterans pay no out-of-pocket cost for routine skilled nursing care at the five state veterans’ homes, with no means test, and keep their Social Security and pension income. VA pays the full cost for veterans with a 70% or higher service-connected rating.
Yes, if you have a DMV fee-exempt registration for a vehicle bought or adapted with VA funds. Apply to the E-ZPass Disabled Veteran Non-Revenue Plan with form TA-W5175 and a copy of the registration, and reapply every two years. Your disability percentage alone doesn’t qualify you.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the State of New York, the New York State Department of Veterans’ Services, VA or any government agency. Property tax exemptions vary by locality and benefits change; confirm details with your assessor, the Department of Veterans’ Services or the official New York state benefits summary before you apply.