KEY TAKEAWAYS
- Pennsylvania does not tax military retired pay or SBP annuities, and active-duty pay earned outside Pennsylvania is not taxed either.
- Wartime veterans rated 100% or paid at 100% through TDIU can owe no property tax at all on their home. Income of $114,637 or less is presumed to meet the financial need test.
- Veterans get 10 points on civil service exams, and appointing authorities must prefer a veteran on the eligible list regardless of rank.
- Pennsylvania National Guard members can get tuition up to $4,245 a semester for a six-year commitment, and can pass a similar benefit to a spouse or child through MFEP.
- Veterans rated 100% get free lifetime fishing and hunting licenses, and those rated 60% to 99% pay $2.97.
- Pennsylvania Income Tax for Veterans and Military Retirees
- Pennsylvania Property Tax Exemption and Rebates
- Home Buying Help Through PHFA
- Education Benefits for Guard Members and Families
- Civil Service Veterans’ Preference
- Financial Assistance and State Pensions
- Pennsylvania State Veterans Homes
- Hunting, Fishing and State Parks
- Driver’s Licenses, Plates and Burial
- Benefits for Surviving Spouses and Families
- How to Apply for Pennsylvania Veteran Benefits
- Frequently Asked Questions
Pennsylvania treats military retirees well on income tax and treats severely disabled veterans very well on property tax: a wartime veteran rated 100% can have the entire property tax bill on the home wiped out. The commonwealth also gives veterans one of the strongest civil service preferences in the country, runs six state veterans homes and offers some of the cheapest hunting and fishing licenses anywhere for disabled veterans. Several figures in older guides are out of date, including the rent rebate income limit and the Guard tuition cap, and a constitutional amendment to extend the property tax exemption passed the House in 2026. This guide covers what Pennsylvania offers in 2026, who qualifies and where to apply.
Pennsylvania Income Tax for Veterans and Military Retirees
Pennsylvania’s personal income tax is a flat 3.07%, and it leaves out most military income:
| Income | Pennsylvania treatment |
|---|---|
| Military retired pay | Not taxed |
| SBP, RCSBP and RSFPP annuities | Not taxed |
| Active-duty pay, or Title 10 or 32 duty, served outside Pennsylvania | Not taxed; file copies of your orders and W-2 with the return |
| Military pay for service inside Pennsylvania, including weekend drills | Taxed at 3.07% |
| VA disability compensation | Tax-free under federal law |
The Department of Revenue treats a Pennsylvanian stationed in another state as owing no Pennsylvania tax on military pay, though other income such as rent or interest is still taxed. TSP does not withhold Pennsylvania tax, and Pennsylvania’s rules for retirement plan distributions differ from federal rules, so ask a tax preparer how your withdrawals will be treated. Spouses of service members stationed in Pennsylvania can keep their own state of residence for tax purposes under the Military Spouses Residency Relief Act.
Our military retirement pay calculator estimates your pension, and the Survivor Benefit Plan guide explains the annuity your spouse would receive tax-free in Pennsylvania.
Pennsylvania Property Tax Exemption and Rebates
Disabled Veterans’ Real Estate Tax Exemption
The Disabled Veterans’ Real Estate Tax Exemption removes all county, municipal and school property tax on the veteran’s home. To qualify, a veteran must meet every one of these:
- Pennsylvania resident, with the home as principal dwelling, owned solely or jointly with a spouse
- Honorable or under honorable conditions discharge
- Service during a period of war as determined by VA; an operation or service-specific expeditionary medal also counts
- A 100% permanent service-connected rating, total disability individual unemployability, or service-connected blindness, paraplegia or loss of two or more limbs
- Financial need
Financial need is presumed if gross annual income is $114,637 or less, the level the State Veterans’ Commission set on January 1, 2025. Above that, you can still qualify if your allowable monthly expenses, verified with documents and including a cost-of-living allowance, exceed your monthly household income. Veterans turned down for need in the past are encouraged to reapply.
Apply through your County Director of Veterans Affairs; the State Veterans’ Commission decides. Keep paying your taxes until you get an approval letter.
Expansion passed the House
HB 1257, a constitutional amendment to extend the exemption to 100% disabled veterans without wartime service and to let counties and school districts give partial relief below 100%, passed the House 193-6 on March 24, 2026. It was sent to the Senate State Government Committee on March 30. As a constitutional amendment, it would need to pass both chambers in two consecutive sessions and then win voter approval, so it does not change anything for 2026.
Property Tax/Rent Rebate
Veterans who do not qualify for the full exemption may qualify for the Property Tax/Rent Rebate if they are 65 or older, a widow or widower 50 or older, or have a disability and are 18 or older, with household income of $48,110 or less. Rebates run from $380 to $1,000, with supplements of up to $500 for the lowest-income homeowners and residents of Philadelphia, Pittsburgh and Scranton. The deadline for 2025 rebate applications is December 31, 2026.
Because the exemption requires a 100% rating or TDIU, a rating increase or an individual unemployability award can be worth thousands of dollars a year in Pennsylvania. Our 100% VA disability guide covers what the rating requires.
Home Buying Help Through PHFA
Pennsylvania has no state veteran home loan program, but the Pennsylvania Housing Finance Agency works alongside a VA loan:
- Keystone Government Loan: a PHFA first mortgage for loans insured or guaranteed by FHA, USDA or VA, through participating lenders.
- Keystone Advantage Assistance Loan: up to 4% of the purchase price or $6,000, whichever is less, for down payment and closing costs, as a 0% second mortgage repaid over 10 years. It requires a 660 credit score and a PHFA first mortgage, and liquid assets after closing cannot exceed $50,000. Details are on the PHFA program page.
A VA loan already needs no down payment in most cases, so the assistance loan is most useful for closing costs. Disabled veterans are also exempt from the VA funding fee; see our VA funding fee guide and our VA loan guide for entitlement and loan limits.
Education Benefits for Guard Members and Families
National Guard Educational Assistance Program (EAP)
The EAP pays tuition for Pennsylvania National Guard members who sign a six-year service agreement:
| Enrollment | 2025-26 award per semester |
|---|---|
| Full-time (12 or more credits) | Tuition plus technology fee, up to $4,245 |
| Part-time | Up to $354 per undergraduate credit, or $563 per graduate credit |
| Lifetime limit | 10 full-time semesters or 120 part-time credits |
Act 32 of 2025 updated the program rules. Members who do not finish the six-year obligation can be required to repay the grants with interest. The annual application suspense date is June 30 for the next academic year; later applications are funded first come, first served.
Military Family Education Program (MFEP)
Guard members who accept a separate six-year obligation can assign an education benefit to DEERS-eligible family members instead of using EAP themselves for that period. It pays up to the PASSHE in-state tuition rate, including the technology fee, for up to five academic years or 120 credits per certificate, and does not reduce other grants. Members can change which family members are assigned.
Educational gratuity for children of disabled or deceased veterans
Children of veterans who are 100% permanently and totally disabled from service, or who died of service-connected causes during wartime, can receive $500 per semester for up to four years at a Pennsylvania school, paid directly to the school. Apply through your County Director of Veterans Affairs.
Veterans and dependents using the GI Bill, VR&E, the Fry Scholarship or Chapter 35 must be charged in-state tuition at public colleges under federal law. Our Post-9/11 GI Bill guide explains the federal benefit, and GI Bill transferability covers passing it to family.
Civil Service Veterans’ Preference
Under Pennsylvania’s civil service law, a qualifying veteran who passes an exam gets 10 points added to the final score, and the appointing authority must give preference to the veteran whatever the veteran’s standing on the eligible list, according to the State Civil Service Commission. That second rule is what makes Pennsylvania’s preference so strong: a veteran on the list generally gets the job over non-veterans.
- Covers veterans of the armed forces, reserve components and National Guard who completed their initial service obligation and were not dishonorably discharged
- Active-duty members finishing a tour of three years or more can claim it within 90 days of an approved discharge
- The same preference extends to unremarried surviving spouses and spouses of veterans the VA rates permanently and totally disabled
- Questions: the Governor’s Office of Administration at 717-783-6655 or ra-cs-vetpreference@pa.gov
PA CareerLink offices have veteran employment representatives for job search help. For federal jobs, see our guide to finding federal jobs for veterans.
Financial Assistance and State Pensions
| Program | What it pays | Who qualifies |
|---|---|---|
| Veterans Temporary Assistance | Up to $1,600 in a 12-month period for food, shelter, fuel, clothing and medical costs | Veterans and unremarried surviving spouses facing a sudden loss of income or rise in expenses |
| Military Family Relief Assistance Program | Grants based on need, up to $5,000 | Service members with 30 or more consecutive days of active or state active duty, and certain medically discharged members |
| Blind Veterans Pension | $150 a month | Pennsylvania residents at entry into service with service-connected vision loss meeting the state standard |
| Amputee and Paralyzed Veterans Pension | $150 a month | Pennsylvania residents at entry with loss or loss of use of two or more limbs, rated at least 40% in each |
Apply for all four through your County Director of Veterans Affairs; MFRAP can also be reached at 800-547-2838. The county director, a free accredited service officer, can also file VA claims. Avoid anyone who wants a share of your back pay for an initial claim; our guide to VA disability claim help explains who can legally charge.
Pennsylvania State Veterans Homes
Pennsylvania’s Department of Military and Veterans Affairs runs six state veterans homes:
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| Home | Location |
|---|---|
| Delaware Valley Veterans’ Home | Philadelphia |
| Gino J. Merli Veterans’ Center | Scranton |
| Hollidaysburg Veterans’ Home | Hollidaysburg |
| Pennsylvania Soldiers’ and Sailors’ Home | Erie |
| Southeastern Veterans’ Center | Spring City |
| Southwestern Veterans’ Center | Pittsburgh |
Levels of care vary by home. Veterans need an honorable discharge and either Pennsylvania residency at entry into service or current residency, with current residents given priority. Spouses of eligible veterans may also be admitted. Admission is first come, first served at each home. For care at home instead, see our Aid and Attendance guide.
Hunting, Fishing and State Parks
| License | Who qualifies | Cost |
|---|---|---|
| Fishing | Pennsylvania residents rated 100% | Free lifetime license, renewed annually |
| Fishing | Rated 60% to 99%, or former POWs | $2.97 a year |
| Hunting and furtaker | Disabled veterans rated 100%, paid at 100% through TDIU, or with a war-related loss of use of limbs | Free lifetime license |
| Hunting | Rated 60% to 99% from war or armed conflict, or former POWs | $2.97 |
| Hunting | Resident active-duty members stationed outside Pennsylvania, home on leave | $2.97, including deer and turkey tags |
| Fishing and hunting | Reserve and Guard members back from 60 or more consecutive days overseas within 24 months | Free fishing and $2.97 hunting, once per deployment |
Resident active-duty members stationed elsewhere can also fish without a license while on leave in Pennsylvania. Pennsylvania state parks charge no entrance fee for anyone. For national parks, every veteran gets a free lifetime pass; see our national park pass guide.
Driver’s Licenses, Plates and Burial
- Veteran designation: request VETERAN on your driver’s license or ID when you apply, renew or get a duplicate. There is no fee for the designation itself, only the normal card fee. Our guide to veteran IDs and proof of service covers other options.
- Severely Disabled Veteran plate: veterans rated 100% service-connected can get it with no fee, and it allows parking 60 minutes past the posted limit. Veterans rated below 100% can get a disabled veteran plate for a fee, without the parking privileges.
Pennsylvania has no state veterans cemetery, but VA runs national cemeteries in the state, including Indiantown Gap, Washington Crossing and the National Cemetery of the Alleghenies. See our VA burial allowance guide for what VA pays toward costs.
Benefits for Surviving Spouses and Families
- Property tax: an unremarried surviving spouse can keep or claim the real estate tax exemption if the veteran qualified, subject to the same financial need test.
- Income tax: SBP, RCSBP and RSFPP annuities are not taxed.
- Hiring: unremarried surviving spouses and spouses of permanently and totally disabled veterans get the same civil service preference as veterans.
- Education: children of veterans who died of service-connected causes in wartime can receive the $500-a-semester gratuity, and Guard families can use MFEP.
- Emergency help: unremarried surviving spouses can apply for Veterans Temporary Assistance.
Federal survivor benefits usually matter more. See our guides to VA benefits for a veteran’s widow, DIC and CHAMPVA.
How to Apply for Pennsylvania Veteran Benefits
- Gather documents: your DD-214, a current VA benefit summary letter and proof of Pennsylvania residency.
- Contact your County Director of Veterans Affairs. Every county has one, and they handle the real estate tax exemption, temporary assistance, the gratuity and VA claims for free. The DMVA lists them.
- Claim the military exclusions on your PA-40, attaching orders for out-of-state active duty.
- Claim veterans’ preference when you apply for a civil service job.
- Get your licenses from your county treasurer or HuntFishPA after your first free or reduced-fee license.
If you are rated 80% or 90%, getting to 100% or TDIU can turn a full property tax bill into none at all. Our VA disability ratings guide explains how ratings are set.
Comparing states? Our guides to Ohio, New York and Maryland cover the neighboring states.
RELATED READING
Homestead exemption, tax-free retired pay and state programs next door.
Eligibility, entitlement, funding fees, and how the $0-down program works.
Property tax breaks, income tax exemptions and state programs in all 50 states.
Frequently Asked Questions
No. Military retired pay is not taxed in Pennsylvania, and neither are SBP, RCSBP or RSFPP annuities. Active-duty pay earned outside Pennsylvania is also excluded. Other income, such as civilian wages, is taxed at the flat 3.07% rate.
Not under current law, which requires wartime service as determined by VA, though an operation or service-specific expeditionary medal can establish it. HB 1257, a constitutional amendment that would drop the wartime requirement, passed the House in March 2026 and is in the Senate. It would also need to pass again in the next session and be approved by voters.
You can still qualify for the Disabled Veterans’ Real Estate Tax Exemption if your verified allowable monthly expenses, including a cost-of-living allowance, are higher than your monthly household income. Income at or below $114,637 is simply presumed to show need. Apply through your County Director of Veterans Affairs.
Yes. The program accepts a 100% permanent service-connected rating, total disability individual unemployability, or service-connected blindness, paraplegia or loss of two or more limbs. You still need wartime service, an honorable discharge, Pennsylvania residency and financial need.
For 2025-26, EAP pays tuition and the technology fee up to $4,245 per semester for full-time students, or up to $354 per undergraduate credit part-time, for up to 10 full-time semesters or 120 credits. You must sign a six-year service agreement and can be required to repay if you do not finish it.
Yes for veterans rated 100%, who get free lifetime fishing and hunting and furtaker licenses. Veterans rated 60% to 99% from war or armed conflict pay $2.97 for each license. Get the first license from your county treasurer, then renew through HuntFishPA.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Pennsylvania Department of Military and Veterans Affairs, the Pennsylvania Department of Revenue, PHFA, the Department of Defense, VA, or any government agency. Amounts and program rules change; confirm current terms with the DMVA or your County Director of Veterans Affairs.