KEY TAKEAWAYS
- Oregon taxes most military retired pay; only the share earned for service before October 1, 1991 can be subtracted. 2025 bills to exempt it did not pass.
- Veterans rated 40% or higher can exempt $27,092 of their home’s assessed value, or $32,512 if the disability is service-connected, for 2026–27. The amounts rise 3% a year.
- A 2025 bill to replace that exemption with a flat $575 credit did not become law, so the exemption still applies.
- Residents with a 25% or higher rating get a free combination hunting, fishing and shellfish license, and a reduced $29 elk tag.
- Spouses and children of veterans rated 100% or who died in service can get free tuition at Oregon public universities.
- Oregon Veteran Benefits by Disability Rating
- Oregon Income Tax for Veterans and Service Members
- Disabled Veteran Property Tax Exemption
- ODVA Home Loan Program
- Education Benefits
- Employment Benefits
- Driver Licenses and Plates
- Hunting, Fishing and State Parks
- Oregon Veterans’ Homes
- Burial, Survivor and Financial Help
- How to Claim Oregon Veteran Benefits
- Frequently Asked Questions
Oregon is a mixed picture for veterans. It has no sales tax, a generous property tax exemption for disabled veterans and one of the oldest state veteran home loan programs in the country, but it taxes most military retired pay as ordinary income. Some benefits also changed, or nearly changed, in the last two years, and several sites still describe a property tax credit that never took effect. This guide covers what Oregon actually offers veterans and military families in 2026, who qualifies and how to apply.
Oregon Veteran Benefits by Disability Rating
| Your status | What you get in Oregon |
|---|---|
| Any honorably discharged veteran | ODVA home loan, veteran designation on your license, state hiring preference (5 points), Veterans Day off on request, emergency financial assistance |
| Any service-connected rating | Disabled Veteran plate; 10-year Special Access Pass for free state park camping and day use |
| 25% or higher | Free combination hunting, fishing and shellfish license; $29 elk tag |
| 40% or higher | $27,092 property tax exemption, or $32,512 if service-connected (2026–27) |
| 65% or higher | Oregon Disabilities Hunting and Fishing Permit |
| 100% service-connected (or death in service) | Free tuition at Oregon public universities for spouse and children |
The 40% line is the one most worth knowing about in Oregon. Our guide to 40% VA disability covers what VA pays at that level and how ratings combine.
Oregon Income Tax for Veterans and Service Members
Military Retired Pay: Mostly Taxed
Oregon lets you subtract only the part of your military retired pay earned for service before October 1, 1991. If your whole career was before that date, all of it is exempt. If your service spans that date, divide your months of service before October 1, 1991 by your total months of service; that percentage of your retired pay is exempt and the rest is taxed at Oregon’s regular rates. For most people who retired in the last 20 years, that means nearly all of their pension is taxable in Oregon.
The same pre-1991 rule applies to Survivor Benefit Plan annuities and to TSP withdrawals made after retirement, as long as the money stays in the federal plan. Two 2025 bills that would have exempted military retired pay, HB 2050 and SB 519, stayed in committee when the session ended, so the rule hasn’t changed. Our military pension calculator shows the federal retired pay that Oregon would tax.
Active-Duty, Guard and Reserve Pay
- Pay for Oregon residents stationed outside Oregon isn’t taxed by Oregon.
- Guard and Reserve members assigned away from home for 21 or more days, and Oregon National Guard members on state active duty, can subtract that pay.
- Up to $6,000 of other taxable military pay can be subtracted.
- Service members in a combat zone or hazardous duty area get the same filing extensions as the IRS, plus 180 days after redeployment or hospital release.
- A nonresident military spouse doesn’t pay Oregon tax on wages earned in Oregon when the service member is stationed there on orders and both keep the same other state of residence.
Disability Pay and Social Security
VA disability compensation, Dependency and Indemnity Compensation and military disability retirement pay for service-connected injuries aren’t taxable, and Oregon doesn’t tax Social Security benefits. Oregon also has no sales tax, which offsets part of the income tax for many retirees.
Disabled Veteran Property Tax Exemption
Oregon exempts part of the assessed value of a disabled veteran’s home. For the 2026–27 tax year, according to the Department of Revenue, the amounts are:
| Who qualifies | Exemption (2026–27) |
|---|---|
| Veteran rated 40% or more disabled by VA or a branch of service | $27,092 of assessed value |
| Veteran certified 40% or more disabled by a physician each year, with income at or below 185% of the federal poverty guidelines | $27,092 |
| Unremarried surviving spouse or partner of a veteran | $27,092 |
| Veteran with a 40% or higher service-connected disability | $32,512 |
| Unremarried surviving spouse or partner, if the veteran died of a service-connected cause or received the maximum exemption for at least a year | $32,512 |
Both amounts rise 3% a year. The exemption applies first to your home and then to taxable personal property, and you must own and live in the home. To count as a veteran, you need an honorable discharge and qualifying service, such as 179 or more consecutive days, service in a combat zone or a campaign ribbon.
- How to apply: file Form 150-303-086 with your county assessor by April 1 for the tax year that starts July 1. If you buy the home between March 1 and July 1, file within 30 days.
- Renewals: you don’t need to refile each year unless a physician certifies your disability or the home’s ownership or use changes.
- Late or retroactive claims: if VA certifies your disability later, you may be able to claim earlier years by filing within six months of the notice, up to three years back.
- Surviving spouses: can keep the exemption without a new claim by notifying the assessor during the tax year after the veteran’s death.
The $575 Credit That Didn’t Happen
You may see a flat $575 property tax credit described as starting in July 2026. That came from SB 1094, a 2025 bill that would have replaced the exemption with credits of $475 and $575 for tax years 2026–27 and later. It passed the Senate but was still in a House committee when the session ended, so it isn’t law. The Department of Revenue’s current guidance, revised in November 2025, still describes the exemption above.
Exemption for Guard and Reserve Members on Federal Active Duty
Oregon resident Guard and Reserve members ordered to federal active duty for 179 or more days can exempt part of their home’s assessed value while deployed. The amount started at $60,000 in 2005 and rises 3% a year. File with the county assessor by August 1 after the tax year ends.
ODVA Home Loan Program
The Oregon Department of Veterans’ Affairs offers fixed-rate home loans to eligible veterans for owner-occupied single-family homes in Oregon, up to the Fannie Mae loan limit, with a lifetime maximum of four loans. You need an honorable discharge and qualifying service. Call ODVA at 800-633-6826 for current rates. A federal VA loan is another option, with no down payment.
Education Benefits
Oregon Veterans Dependent Tuition Program
Oregon public universities and OHSU waive tuition for a bachelor’s degree (up to four years of full-time credits) or a master’s degree (up to two years) for the spouse, unremarried surviving spouse or children of a veteran who:
- Has a 100% service-connected rating or died of a service-connected disability
- Died on active duty
- Received a Purple Heart on or after 2001 (children only)
Children qualify up to age 23, with a master’s waiver possible for older children who apply within 12 months of finishing a bachelor’s degree. The veteran needs an honorable or general discharge. Call 503-580-9049.
Oregon Veterans Bridge Grant
The Bridge Grant pays up to $5,000 to Oregon resident veterans who can’t finish a VA-approved Oregon program on time because a required class isn’t available or a student account debt is blocking registration. Call 503-400-0540.
National Guard State Tuition Assistance
Drilling Oregon National Guard members in good standing without a bachelor’s degree get in-state tuition covered for up to 90 community college credits, or 180 quarter or 120 semester credits at a university. Fees and books aren’t covered for 2025–26 because of budget limits. You need at least a 2.0 GPA and must file the FAFSA.
In-State Tuition
Service members stationed in Oregon, their spouses and children pay resident tuition, as do people who were Oregon residents when they enlisted and those who return within six months of discharge. Students using VA education benefits or the Fry Scholarship also pay resident tuition. For the federal side, see our Post-9/11 GI Bill guide.
Employment Benefits
- State hiring preference: veterans get 5 points added to their score and disabled veterans 10, and any veteran who meets the minimum qualifications must be interviewed. From January 1, 2026, the preference also covers current and former Oregon National Guard members.
- Veterans Day off: veteran employees can ask for November 11 off with at least 21 days’ notice and proof of service. Employers can deny it only for significant economic or operational disruption, and then must give another day off.
- Military family leave: spouses or partners of certain service members can take up to 14 days of unpaid leave at employers with 25 or more employees.
- State employee military leave: reserve component members who work for the state get 21 days of paid military leave a year.
- Licensing: Oregon licensing boards accept military training and experience in place of some civilian requirements.
Driver Licenses and Plates
- Veteran designation: no extra fee beyond the regular license or ID fee; bring your DD-214 or DD-215 to the DMV.
- Disabled Veteran plate: for veterans with an honorable discharge and a service-connected rating. It doesn’t give parking privileges.
- Other plates: Medal of Honor, Veteran Recognition (with branch insignia) and Gold Star Family plates.
Hunting, Fishing and State Parks
- Free disabled veteran license: Oregon residents of at least six months with a 25% or higher disability rating get a free combination hunting, fishing and shellfish license, including the Columbia Basin and Ocean endorsements and a wildlife area parking permit. Renew it each year online. Details are on the ODFW benefits page.
- Reduced elk tag: disabled veterans who qualify for that license can buy an elk tag for $29.
- Disabilities Permit: veterans rated 65% or higher can get the Oregon Disabilities Hunting and Fishing Permit, which allows hunting or fishing with help and other accommodations.
- Active duty: Oregon residents on leave from out of state can get controlled deer, elk and bear tags first come, first served, and can buy general season tags after the deadline without a late fee. There’s also a veterans and active military waterfowl hunt day each February.
- State parks: veterans with a service-connected disability can get a 10-year Special Access Pass for free camping at RV, tent and horse sites and free day-use parking, up to 10 nights per park or 10 nights in 30 days statewide. Yurts and cabins aren’t included. Call 800-551-6949.
Oregon Veterans’ Homes
| Home | Beds | Address and phone |
|---|---|---|
| The Dalles Veterans’ Home | 151 | 700 Veterans Drive, The Dalles; 541-296-7190 |
| Edward C. Allworth Veterans’ Home, Lebanon | 154 | 600 North 5th Street, Lebanon; 541-570-7477 |
Both provide long-term nursing, memory care and rehabilitation. Honorably discharged veterans, their spouses and surviving spouses, and Gold Star parents can apply if they need skilled or intermediate nursing care and can pay their share of the cost.
Burial, Survivor and Financial Help
VA runs several national cemeteries in Oregon, including Willamette National Cemetery in Portland. Unremarried surviving spouses keep the property tax exemption, and spouses and children of veterans who died in service or of a service-connected disability can use the dependent tuition program. ODVA’s emergency financial assistance program makes one-time payments for housing, medical, dental and transportation emergencies to honorably discharged veterans and their unremarried surviving spouses and dependents; apply through a county or tribal veteran service officer. For federal survivor benefits, see our guide to VA benefits for surviving spouses.
If you haven’t enrolled in VA health care, apply online at VA.gov; our VA health care enrollment guide explains priority groups and costs.
How to Claim Oregon Veteran Benefits
- Get your documents: your DD-214 and a VA benefit summary letter dated within the last three years showing your rating.
- Talk to a county veteran service officer or the Oregon Department of Veterans’ Affairs (800-692-9666); their help with state and federal claims is free.
- Apply where the benefit is run: your county assessor for property tax (by April 1), your Oregon tax return for the retired pay subtraction, ODFW for licenses, State Parks for the Special Access Pass, the DMV for plates and your school for tuition programs.
RELATED READING
Washington State Veteran Benefits: Complete Guide →
Oregon’s neighbor has no income tax at all, so military retired pay is tax-free.
40% VA Disability: Pay and Benefits →
The rating that unlocks Oregon’s property tax exemption.
Compare Oregon with every other state’s taxes and property tax benefits.
Frequently Asked Questions
Mostly, yes. Oregon lets you subtract only the share of military retired pay earned for service before October 1, 1991; the rest is taxed at Oregon’s regular income tax rates. Bills to exempt military retired pay (HB 2050 and SB 519) did not pass in 2025.
For 2026–27, veterans rated 40% or more disabled can exempt $27,092 of their home’s assessed value, or $32,512 if the disability is service-connected. Unremarried surviving spouses also qualify. File Form 150-303-086 with your county assessor by April 1.
No. SB 1094 (2025) would have replaced the exemption with credits of $475 and $575 starting with the 2026–27 tax year, but it did not pass the House before the session ended. The Department of Revenue still administers the exemption.
Yes. Oregon residents of at least six months with a disability rating of 25% or higher get a free combination hunting, fishing and shellfish license, and can buy a reduced-price elk tag for $29.
Children and spouses of a veteran with a 100% service-connected rating, or who died on active duty or of a service-connected disability, can get tuition waived at Oregon public universities and OHSU through the Oregon Veterans Dependent Tuition Program. Children of Purple Heart recipients from 2001 on also qualify.
Yes, two: The Dalles Veterans’ Home and the Edward C. Allworth Veterans’ Home in Lebanon. They provide nursing, memory care and rehabilitation for honorably discharged veterans, spouses and surviving spouses, and Gold Star parents.
Not if you’re an Oregon resident stationed outside the state. Guard and Reserve members away from home for 21 or more days can also subtract that pay, and up to $6,000 of other military pay can be subtracted.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the State of Oregon, the Oregon Department of Veterans’ Affairs, VA or any government agency. Benefits and eligibility rules change; confirm current details with the Oregon Department of Veterans’ Affairs, your county assessor or the official Oregon state benefits summary before you apply.