
New York offers one of the most comprehensive veteran benefit packages in the nation, including completely tax-free military retirement pay, generous education awards covering full SUNY tuition, and robust property tax exemptions. With approximately 637,000 veterans calling New York home, the state has developed extensive programs through the New York State Department of Veterans’ Services to support those who served.
Updated for 2026: The Veterans Tuition Award (VTA) program underwent significant expansion effective July 1, 2025, now allowing veterans with four years of active-duty service to qualify for full-tuition awards at SUNY and CUNY institutions—even without combat service. Additionally, Cold War veterans are now eligible for the Alternative Veterans Property Tax Exemption as of December 2025.
Key Takeaways
- 100% tax-free: All military retirement pay, SBP annuities, and VA disability compensation are completely exempt from New York State, New York City, and Yonkers income taxes
- NEW VTA expansion: Veterans with 4+ years active-duty service now qualify for full SUNY undergraduate tuition coverage, even without combat service (effective July 2025)
- Three different property tax exemptions available for veterans: Alternative Veterans (wartime), Cold War Veterans (now expanded), and Eligible Funds exemptions
- Civil service preference adds 5-10 points to exam scores, plus the 55-c program provides 500 state positions for disabled veterans without requiring exams
- Free Thruway travel statewide for qualifying disabled veterans through the E-ZPass Non-Revenue program
- Five state veterans’ nursing homes provide skilled care at no out-of-pocket cost to eligible veterans
- Lifetime Liberty Pass grants free access to state parks, golf courses, swimming pools, and discounted camping for disabled veterans
Table of Contents
- Income Tax Benefits
- Property Tax Exemptions
- Education Benefits
- Employment Benefits
- DMV and Vehicle Benefits
- Free Thruway Travel
- Hunting, Fishing, and Recreation Benefits
- VA Healthcare in New York
- State Veterans Homes
- State Veterans Cemetery
- Additional Resources
- Frequently Asked Questions
Income Tax Benefits
New York is one of the most tax-friendly states for military retirees, offering complete exemption of military retirement income from state and local taxes.
Military Retirement Pay
Military retirement pay is 100% exempt from New York State income tax, New York City income tax, and Yonkers income tax. This applies to:
- All branches of U.S. Armed Forces retirement pay
- Reserve and National Guard retirement pay
- Survivor Benefit Plan (SBP) annuities
- Reserve Component Survivor Benefit Plan (RCSBP) annuities
- Retired Serviceman’s Family Protection Plan (RSFPP) annuities
This exemption has no income limits, age requirements, or caps—your entire military retirement is tax-free in New York.
VA Disability Compensation
VA disability compensation is completely tax-free at both the federal and New York State level, regardless of your disability rating.
Active Duty and National Guard Pay
Active duty military pay is generally subject to New York income tax if you’re a resident. However, several exemptions apply:
- Combat zone pay is exempt from New York taxes
- National Guard members called to state or federal active duty can subtract their military pay from New York taxable income
- Nonresident service members stationed in New York under military orders are exempt from New York income tax on military wages
Military Spouse Residency Relief
Under the Military Spouse Residency Relief Act, a nonresident spouse of a service member stationed in New York is exempt from New York income taxes on wages earned in New York. The nonresident spouse pays taxes to their state of legal residence instead.
For more information, visit the New York State Department of Taxation and Finance Military Information page.
Property Tax Exemptions
New York offers three different property tax exemptions for qualifying veterans and their family members. These exemptions are offered by local taxing jurisdictions (counties, cities, towns, villages, and school districts), so availability varies by location. You can only receive one of the three exemptions.
Alternative Veterans Exemption (Section 458-a)
This is the most common veterans exemption, available to veterans who served during wartime or received an expeditionary medal.
Basic exemption structure:
- 15% reduction in assessed value for qualifying wartime veterans (up to $12,000 or adjusted by equalization rate)
- Additional 10% for combat zone service or expeditionary medal recipients (up to $8,000 additional)
- Additional exemption for service-connected disability equal to one-half the disability rating (up to $40,000 for 100% disabled)
Eligibility:
- Served during designated wartime periods (WWII, Korea, Vietnam, Persian Gulf, War on Terror, etc.)
- Or received Armed Forces Expeditionary Medal, Navy/Marine Corps Expeditionary Medal, or Global War on Terrorism Expeditionary Medal
- Property must be primary residence
- Honorable discharge required
NEW for December 2025: Cold War veterans are now eligible to apply for the Alternative Veterans Exemption in addition to the Cold War Veterans Exemption.
Application: Form RP-458-a, filed with your local assessor by March 1 (March 15 in NYC).
Cold War Veterans Exemption (Section 458-b)
Available to veterans who served during the Cold War period (September 2, 1945 through December 26, 1991) but did not serve during a designated wartime period or receive an expeditionary medal.
Exemption structure:
- 10% or 15% reduction in assessed value (as adopted by local taxing jurisdiction)
- Additional exemption for service-connected disability
A “Cold War Recognition Certificate” is no longer required—a copy of your DD-214 is sufficient to apply.
Application: Form RP-458-b, filed with your local assessor.
Eligible Funds Exemption (Section 458)
This exemption applies to property purchased using “eligible funds” including:
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- Veterans’ pensions
- Bonus payments
- Insurance proceeds
- Mustering out pay
The exemption reduces assessed value by the amount of eligible funds used in the purchase, generally up to $5,000. This exemption does not require the property to be your primary residence.
Surviving Spouses
Unremarried surviving spouses of eligible veterans may continue to receive property tax exemptions. Gold Star parents may also qualify in certain circumstances.
For detailed information, see New York State Veterans Property Tax Exemptions.
Education Benefits
Veterans Tuition Award (VTA) — EXPANDED July 2025
The Veterans Tuition Award is New York’s flagship education benefit for veterans. The program underwent significant expansion effective July 1, 2025, broadening eligibility to more veterans.
Award amount: Up to the full cost of undergraduate tuition at SUNY (approximately $7,070 annually for 2025-26), applicable at any approved public or private college, university, or vocational training program in New York.
NEW eligibility (effective July 1, 2025):
- Veterans with a minimum of four years of active-duty service, OR
- Veterans who served in combat or the combat theaters of Vietnam, Persian Gulf, or Afghanistan
- Must have been honorably discharged (not dishonorably)
Previous eligibility (applications before July 1, 2025):
- Vietnam veterans (February 28, 1961 – May 7, 1975)
- Persian Gulf veterans (August 2, 1990+)
- Afghanistan veterans (September 11, 2001+)
- Veterans with expeditionary medals for hostilities after February 28, 1961
Key features:
- Available for undergraduate, graduate, or vocational training
- Both full-time and part-time students now eligible
- Can be combined with Montgomery GI Bill (not with Post-9/11 GI Bill if tuition is already covered)
- Applications accepted year-round
- Must be a New York resident for 12 months prior
- Complete FAFSA and TAP application first
Military Enhanced Recognition Incentive and Tribute (MERIT) Scholarship
The MERIT Scholarship covers the full cost of attendance (tuition, fees, room and board) for:
- Children of veterans who died or became severely disabled during military service
- Spouses of veterans who died or became severely disabled
- Financial dependents of qualifying veterans
Learn more at HESC MERIT Scholarship.
Regents Award for Children of Deceased and Disabled Veterans
Provides $450 annually to eligible undergraduate students whose parents:
- Served during wartime and died, became severely disabled, were taken prisoner, or declared missing in action
- Were New York residents at the time of entry into service or at the time of death/disability
New York National Guard Tuition Programs
Recruitment Incentive and Retention Program (RIRP): Pays the cost of undergraduate or graduate tuition up to SUNY rates for eligible New York National Guard members.
In-State Tuition for Veterans
Under the Veterans Access, Choice, and Accountability Act, veterans using GI Bill benefits receive in-state tuition rates at SUNY and CUNY institutions, regardless of their state of residence, for up to three years after discharge.
Employment Benefits
Civil Service Veterans’ Preference
New York provides veterans’ preference for state and local government employment through additional credits on civil service examinations:
Non-disabled veterans:
- 5 points added to passing scores on open-competitive examinations
- 2.5 points added on promotion examinations
Disabled veterans (10%+ VA rating):
- 10 points added to passing scores on open-competitive examinations
- 5 points added on promotion examinations
Eligibility requirements:
- New York resident
- Served on active duty in U.S. Armed Forces (other than for training)
- Honorable discharge (or will be at time of appointment)
Veterans with Disabilities Employment Program (55-c)
This program authorizes up to 500 state positions to be filled by qualified wartime veterans with a service-connected disability rating of 10% or higher. Key features:
- No civil service examination required
- Combat service not required
- Purple Heart recipients automatically eligible
- Must meet minimum qualifications for the position
Apply through the New York Civil Service Veterans Portal.
Veterans Temporary Hiring Program
Post-9/11 veterans can submit employment information for consideration by state agencies hiring for temporary positions in areas including customer service, maintenance, parks and recreation, and more.
Hire-a-Vet Tax Credit
New York businesses can receive a tax credit for hiring qualified veterans who served on active duty after September 11, 2001. The veteran must work at least 35 hours per week for one full year.
NYC Civil Service Exams
In New York City, veterans can take every civil service exam for free, and veteran spouses receive a one-time waiver of the application fee.
DMV and Vehicle Benefits
Veteran Designation on License/ID
New York offers a free veteran designation on driver’s licenses and state ID cards for honorably discharged veterans. This can help you receive military discounts and verify your veteran status.
Vehicle Registration Fee Exemptions
Veterans with disabilities may qualify for exemption from vehicle registration and plate fees if:
- They receive federal funds (Title 38) for the purchase or modification of a specially adapted vehicle
- They apply for Congressional Medal of Honor custom plates
- They apply for Former Prisoner of War custom plates
Special License Plates
New York offers over 50 distinctive military and veteran license plates, including:
- Disabled Veteran
- Disabled American Veteran (organization)
- Purple Heart
- Medal of Honor
- POW
- Gold Star Family
- Branch-specific plates
Custom plate fees vary. Apply by mail using Form CP-30.
Free Thruway Travel
The New York State Thruway Authority offers free, unlimited travel anywhere on the Thruway for qualifying disabled veterans through the E-ZPass Disabled Veterans Non-Revenue Program.
Eligibility: Veterans who qualify for and have obtained a fee-exempt vehicle registration from the DMV for a specially adapted vehicle (under Title 38 Automobile and Adaptive Equipment grant).
Note: Eligibility is not determined by disability percentage or specialty license plates—only by the fee-exempt registration status.
How to apply:
- Complete VA Form 21-4502 and submit to your VA Regional Office
- When approved, obtain your fee-exempt registration from DMV
- Complete Form TA-W5175 and submit with copy of your fee-exempt registration to the Thruway Authority
Learn more at NYS Thruway Disabled Veterans Program.
Hunting, Fishing, and Recreation Benefits
Reduced-Fee Hunting and Fishing Licenses
New York resident veterans with a 40% or greater service-connected disability rating are eligible for:
- $5 Sportsman license (includes fishing, big game, and small game privileges)
- Preference in Deer Management Permit selection
Veterans must apply the first time in person at a DEC License Issuing Agent with documentation from the VA showing the disability rating. After initial verification, future purchases can be made online.
Free Licenses for Active Duty
Under the Patriot Plan, free hunting, fishing, and trapping licenses are available to:
- New York resident service members on active duty stationed outside New York who are home on leave for 30 days or less
- New York National Guard and Reserve members currently serving on active duty in support of the War on Terror
Lifetime Liberty Pass
The Lifetime Liberty Pass is free for eligible disabled veterans and Gold Star family members. Benefits include:
- Free vehicle entry to state parks and DEC-operated day-use areas
- Free entry to numerous boat launch sites, historic sites, arboretums, and park preserves
- Free golf at 28 State Park golf courses
- Free swimming pool entrance at 36 State Park pools
- Discounted camping and cabin rentals at all 119 State Park and DEC campgrounds
Eligibility: New York resident veterans who served during wartime with a 40%+ service-connected disability, or who received federal funds to purchase a specially adapted vehicle.
Empire Pass for Active Duty Families
Under the Patriot Plan, one free Empire Pass per household is available to families of New York National Guard and Reserve members currently serving on active duty. The Empire Pass provides unlimited day-use vehicle entry to state parks and DEC facilities.
VA Healthcare in New York
New York veterans have access to extensive VA healthcare through multiple healthcare systems with facilities across the state.
VA New York Harbor Healthcare System
Serves veterans in New York City through:
- Margaret Cochran Corbin VA Medical Center (Manhattan) – 423 East 23rd Street
- Brooklyn VA Medical Center – 800 Poly Place
- St. Albans Community Living Center (Queens) – 179-00 Linden Blvd, Jamaica
- Community-based outpatient clinics in Harlem and Staten Island
- Two mobile clinics
The system is affiliated with SUNY Downstate, NYU School of Medicine, and other academic institutions.
Contact: VA New York Harbor Healthcare | 800-877-6976
VA Healthcare Network Upstate New York (VISN 2)
Serves upstate veterans through six medical centers and 29 community-based outpatient clinics:
- Albany Stratton VA Medical Center
- Bath VA Medical Center
- Batavia VA Medical Center
- Buffalo VA Medical Center
- Canandaigua VA Medical Center
- Syracuse VA Medical Center
Veterans Service Contact Center: 1-888-823-9656
Northport VA Medical Center
Serves veterans on Long Island with comprehensive medical and surgical services.
VA Enrollment
To enroll in VA healthcare, apply online at VA.gov, call 1-877-222-8387, or visit any VA medical facility.
State Veterans Homes
New York operates five state veterans’ nursing homes that provide skilled nursing care at no out-of-pocket cost to eligible veterans. These facilities are consistently ranked among the best nursing homes in the nation.
Facilities
- New York State Veterans’ Home at Oxford – 242 beds, Chenango County
4207 NY-220, Oxford, NY 13830 | 607-843-3121 - New York State Veterans’ Home at Montrose – 252 beds, Upper Westchester County
Route 9A, Montrose, NY 10548 | 914-788-6000 - New York State Veterans’ Home at St. Albans – 250 beds, Queens
178-50 Linden Boulevard, Jamaica, NY 11434 | 718-990-0353 - New York State Veterans’ Home at Batavia – 126 beds, Genesee County
220 Richmond Avenue, Batavia, NY 14020 | 585-345-2049 - Long Island State Veterans Home – Stony Brook
100 Patriots Road, Stony Brook, NY 11790 | 631-444-8387
Eligibility
- Honorably discharged veterans
- Spouses of veterans
- Gold Star parents
- Must require skilled nursing home care
Benefits
- No out-of-pocket costs for routine skilled nursing care
- No means test or income limitation
- Veterans keep all their Social Security, pension, and other income
- State-of-the-art medical, nursing, psychosocial, and rehabilitative services
For more information, visit New York State Veterans’ Homes.
State Veterans Cemetery
New York State Veterans Cemetery – Finger Lakes
New York’s first state veterans cemetery is located in Romulus, Seneca County, on 162 acres along Seneca Lake. The cemetery is adjacent to Sampson State Park, on the site of the former Sampson Naval Training Station and Air Force Base.
Location: 2676 Route 96A, Romulus, NY 14541
Phone: 607-869-2026
Eligibility:
- Veterans with honorable or general discharge and 24 months of service (or discharged for disability/hardship)
- Reservists eligible for retirement or who served 6+ continuous years with honorable service
- Veterans killed in action
- Eligible spouses and dependent children
Benefits (provided at no cost):
- Gravesite and opening/closing
- Perpetual care
- Marble headstone
- Use of committal shelter for 30-minute service
Supplemental Burial Allowance
New York offers a Supplemental Burial Allowance of up to $6,000 for surviving families of military members killed in a combat zone or while on active duty in hostile/imminent danger locations on or after September 29, 2003.
National Cemeteries in New York
New York is also home to eight VA National Cemeteries including:
- Gerald B.H. Solomon Saratoga National Cemetery (Schuylerville)
- Calverton National Cemetery (Long Island)
- Long Island National Cemetery (Farmingdale)
- Woodlawn National Cemetery (Elmira)
Additional Resources
New York State Department of Veterans’ Services
The New York State Department of Veterans’ Services (DVS) is your primary resource for state veteran benefits. Services include:
- Veterans Benefit Advisors available statewide (all are veterans themselves)
- Assistance with VA claims and appeals
- Referrals to education, employment, and housing resources
- Support for homeless veterans
Call 1-888-838-7697 to speak with a Veterans Benefit Advisor.
County Veterans Service Agencies
Each of New York’s 62 counties has a County Veterans Service Agency that provides free assistance with VA benefits, claims, and local resources.
Blind Annuity Program
Legally blind wartime veterans who are New York residents may qualify for a monthly annuity. Unremarried surviving spouses of legally blind wartime veterans may also be eligible. Blindness does not need to be service-connected.
Gold Star Parent Annuity
New York provides an annual annuity to Gold Star parents (parents of service members killed in military service) in recognition of their sacrifice.
Frequently Asked Questions
No. All military retirement pay is 100% exempt from New York State, New York City, and Yonkers income taxes. This includes SBP annuities. There is no age limit or income cap on this exemption.
First, complete your FAFSA and TAP application. Then apply for the VTA through the HESC website. You must be a New York resident for 12 consecutive months prior to the start of the term. Applications are accepted year-round.
New York offers three exemptions: the Alternative Veterans Exemption (for wartime veterans, up to 25% of assessed value plus disability add-on), Cold War Veterans Exemption (10-15% for Cold War era veterans), and Eligible Funds Exemption (for property purchased with veteran funds). Availability varies by locality—check with your local assessor.
Yes, if you qualify for a fee-exempt vehicle registration from DMV for a specially adapted vehicle. The Thruway Authority’s E-ZPass Disabled Veterans Non-Revenue Program provides unlimited free travel on the Thruway system. Eligibility is based solely on the fee-exempt registration, not on disability percentage or specialty plates.
Veterans with a 40%+ service-connected disability can get a full Sportsman license (fishing, big game, small game) for just $5 annually. Active duty service members on leave and National Guard members may qualify for free licenses under the Patriot Plan.
No. Eligible veterans have no out-of-pocket costs for routine skilled nursing care at New York’s five state veterans’ homes. Veterans keep all their Social Security and pension income.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Department of Defense, VA, or any government agency. For official benefit information, visit veterans.ny.gov or contact the NYS Department of Veterans’ Services at 1-888-838-7697.