Key Takeaways
- No State Income Tax: Tennessee has no state income tax on wages, military retirement pay, TSP distributions, or VA disability compensation
- Property Tax Relief: Disabled veterans receive property tax reimbursement on the first $175,000 of their home’s market value; surviving spouses also qualify
- STRONG Act Tuition: Tennessee National Guard members receive tuition reimbursement up to 130 credit hours toward a bachelor’s or first master’s degree
- Lifetime Hunting/Fishing License: Disabled veterans (100% P&T or 30%+ wartime) pay a one-time $10 fee for a permanent license
- Six State Veterans Homes: Locations in Clarksville, Cleveland, Humboldt, Knoxville, Murfreesboro, and Arlington (opening 2025)
- Employment Preference: The TEAM Act guarantees interviews for veterans meeting minimum qualifications for state preferred service positions
Table of Contents
- Income Tax Benefits
- Property Tax Relief
- Education Benefits
- Employment Preference
- Motor Vehicle Benefits
- Recreation Benefits
- State Veterans Homes
- Burial Benefits
- How to Apply
- Frequently Asked Questions
Tennessee ranks among the most tax-friendly states for veterans in the nation, with approximately 395,000 veterans representing over 7% of the state’s adult population. The Volunteer State offers a compelling combination of no state income tax, property tax relief for disabled veterans, robust education programs for National Guard members, and extensive recreational benefits. This guide covers all major Tennessee veteran benefits with 2026 updates.
Income Tax Benefits
Tennessee’s tax structure makes it one of the most attractive states for military retirees and veterans receiving disability compensation.
No State Income Tax
Tennessee does not have a general state income tax on wages or retirement income. This means:
- Military Retirement Pay: 100% exempt from state taxation (there’s no tax to begin with)
- VA Disability Compensation: Completely tax-free at both federal and state levels
- TSP Distributions: Not subject to state income tax – learn more about TSP
- Active-Duty Pay: No state income tax regardless of where you’re stationed
- Survivor Benefit Plan (SBP): Not subject to state taxation
Tennessee residents do not need to file a state income tax return for wage or retirement income. This makes Tennessee particularly attractive for military retirees compared to states that tax retirement pay partially or fully.
Sales Tax
Tennessee has a statewide sales tax rate of 7.0%, with counties authorized to levy additional local taxes up to 2.5%. The combined average sales tax rate is approximately 9.55%, among the highest in the nation. There are no special sales tax exemptions for veterans.
Property Tax Relief
Tennessee provides property tax relief (not an exemption) to disabled veterans, meaning the state reimburses qualifying homeowners for all or part of their property taxes paid. This is administered through county trustees.
Disabled Veteran Property Tax Relief
What It Provides: The state reimburses property taxes on up to $175,000 of the full market value of a disabled veteran’s primary residence.
Who Qualifies: Veterans who have served in the U.S. Armed Forces, received a discharge other than dishonorable, and meet one of the following criteria:
- 100% permanent and total service-connected disability rating from the VA
- 100% disability rating as a former prisoner of war
- Permanent paralysis of both legs and lower body from traumatic injury or disease to the spinal cord or brain
- Loss or permanent loss of use of both legs, or one arm and one leg
- Total blindness
Additional Requirements:
- Must own and use the property as your primary residence
- Property must be in the veteran’s name (solely or jointly)
- No income limit for disabled veterans (unlike the elderly/disabled homeowner program)
Surviving Spouse Property Tax Relief
Property tax relief extends to surviving spouses under certain conditions:
- Surviving Spouse of Disabled Veteran: Un-remarried spouse of a veteran who was eligible for property tax relief at the time of death receives relief on up to $100,000 of property value
- Surviving Spouse of Combat Death: Un-remarried spouse of a service member whose death resulted from deployment in combat or peace operations
- Gold Star Surviving Spouse: Un-remarried spouse of a veteran whose death resulted from a service-connected, combat-related cause
How the Program Works
This is a reimbursement program, not an exemption. In the first year of application, you must pay your property taxes in full and submit a paid receipt with your application. The state will mail a refund if approved. In subsequent years, you’ll receive a voucher deducting the state’s portion, and you pay only the remaining balance.
Apply through your local County Trustee’s office.
Education Benefits
Tennessee offers several education programs for National Guard members, veterans, and their dependents.
Tennessee STRONG Act (National Guard Tuition Reimbursement)
The Tennessee Support, Training, and Renewing Opportunity for National Guardsmen (STRONG) Act is a tuition reimbursement program for Tennessee National Guard members pursuing higher education.
What It Covers:
- 100% of resident undergraduate or graduate tuition (reimbursed at the UT Knoxville rate)
- Up to 130 undergraduate semester hours (previously 120)
- Up to 40 graduate semester hours
- First-time bachelor’s or first master’s degree only
- Certificates and diplomas from vocational/technical programs
How It Works: The STRONG Act is a “last-dollar” reimbursement program—any Federal Tuition Assistance, scholarships, grants, or other financial aid is deducted first, and STRONG covers the remaining tuition.
Eligibility Requirements:
- Currently serving in the Tennessee National Guard in good standing
- Admitted to an eligible institution (Tennessee public college/university, TCAT, or regionally accredited private institution)
- Maintain 2.0 GPA minimum for undergraduate, 3.0 GPA for graduate studies
- Must apply for Federal Tuition Assistance (FTA) if eligible
- Service term must not expire during the academic term
- Graduate students must have completed advanced military leadership training (ALC, WOAC, CCC for Army; ALS, SOS for Air)
Private Institution Note: Those attending private institutions will be reimbursed at the average public institution rate.
Apply through your unit’s Education Office or visit the Tennessee Military Department. Effective July 1, 2025, completed applications must be submitted within 45 days of the end of the term.
Dependents Tuition Waiver
Surviving dependents of certain veterans may receive free tuition and fees at Tennessee state-supported colleges and universities:
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- Eligible Dependents: Children under 23 years of age and surviving spouses
- Eligible Veterans: Service members who died as a direct result of injuries received while serving, or were officially reported as POW or MIA during a qualifying period of armed conflict
The waiver covers tuition, maintenance fees, student activity fees, and registration fees. Dependents must present a certificate from the U.S. Government and cannot be receiving benefits under Public Law 634 or similar programs.
Helping Heroes Grant
The Helping Heroes Grant provides financial assistance to post-9/11 veterans and their family members pursuing higher education in Tennessee:
- Award Amount: Up to $1,000 per semester for 12+ semester hours; $500 per semester for 6-11 semester hours
- Eligibility: Honorably discharged veteran (including Reserve/Guard called to active service) who is a Tennessee resident and enrolled in a Tennessee institution
- Service Award Requirement: Must have been awarded a campaign medal or decoration on or after September 11, 2001
Apply through the College for Tennessee. Deadlines are September 1 for fall and February 1 for spring enrollment.
In-State Tuition for Veterans
All eligible veterans classified as out-of-state students pay in-state tuition and fees at Tennessee public colleges and universities, regardless of their state of residency.
Veterans High School Diploma
Tennessee awards honorary high school diplomas to veterans who left school to serve during World War II, Korea, or Vietnam eras.
Employment Benefits
TEAM Act Veterans’ Preference
The Tennessee Excellence, Accountability, and Management (TEAM) Act provides meaningful employment preference for veterans applying for state jobs:
- Guaranteed Interview: Veterans who meet the minimum qualifications for open state preferred service positions are guaranteed an interview
- Preference Points: Veterans receive preference points on civil service examinations
- Streamlined Appeals: Veterans in preferred service positions have access to a streamlined appeals process for dismissal, demotion, or certain suspensions
Spouse preference extends to surviving spouses of veterans who were 100% disabled or who died while on active duty, provided the spouse is a Tennessee resident or registered voter for at least two years.
Military Leave for State Employees
Tennessee state employees receive generous military leave benefits:
- Military Duty Leave: 20 days of paid leave per calendar year for Reserve component members
- State Active Duty: National Guard members called to state active duty receive leave with pay for the duration
- Partial Pay for Deployment: State employees called to active duty supporting contingency operations may receive special leave with partial pay for up to one year
CDL Skills Test Waiver
Qualified military personnel applying for a Tennessee Commercial Driver’s License (CDL) may receive a waiver of the required road skills test. Applicants must pass the CDL knowledge test and have held a military operator’s permit for at least two years. This applies to active-duty members, National Guard, Reserve, and veterans discharged within the last year.
Professional License Portability
Military spouses with professional licenses from other states may practice in Tennessee but must apply for Tennessee licensure within one year of moving to the state.
Motor Vehicle Benefits
Motor Vehicle Tax Exemptions
Certain veterans are exempt from county motor vehicle privilege taxes, registration fees, and related assessments:
- 100% Permanently and Totally Disabled Veterans: Exempt from county motor vehicle privilege tax
- Former Prisoners of War: Exempt from county motor vehicle privilege tax
- Veterans with Special Vehicle Grants: Those receiving VA grants for specially adapted vehicles are exempt
Veteran License Plates
Tennessee offers a variety of veteran license plates recognizing service, including plates for combat veterans, Purple Heart recipients, POWs, Medal of Honor recipients, and branch-specific plates. Contact your local county clerk for availability and requirements.
Veteran Designation on Driver’s License
Honorably discharged veterans can request a veteran designation on their Tennessee driver’s license or state ID card, which can help when proving veteran status for discounts and benefits.
Recreation Benefits
Hunting and Fishing Licenses
Tennessee offers discounted and free hunting/fishing licenses for disabled veterans:
Permanent Disabled Veteran License ($10 one-time fee):
- 100% P&T Veterans: Residents with a 100% permanent and total service-connected disability rating qualify for a lifetime sport combination hunting and fishing license
- 30%+ Wartime Veterans: Residents with a 30% or greater disability rating due to wartime service also qualify
This permanent license covers basic hunting and fishing but does not include WMA permits, quota hunt fees, or certain specialty permits. Apply by mail using the TWRA Miscellaneous Licenses Application.
Military Personnel on Leave: Service members on leave from the U.S. Armed Forces do not need to purchase hunting or fishing licenses while in Tennessee. Carry your leave papers when hunting or fishing.
Non-Resident Military: Active-duty service members stationed in Tennessee and their dependents may purchase hunting and fishing licenses at resident rates.
State Parks Benefits
Tennessee State Parks offer several discounts for veterans:
- Off-Season Camping Discount: Tennessee resident veterans receive 50% off standard nightly camping rates from December 1 through February 28/29 (premium sites excluded)
- 100% Disabled Veterans: 50% discount off camping and cabin fees year-round for Tennessee residents with 100% service-connected disability (premium sites excluded; reservations must be made within 30 days)
- Veterans Day: Free camping, cabin stays, and golf greens fees at state parks on November 11
All veteran discounts require proof of Tennessee residency, veteran status, and disability percentage (if applicable). Acceptable ID includes Tennessee driver’s license, DD-214, VA ID card, or VA Benefits Summary Letter.
State Veterans Homes
Tennessee operates six state veterans homes providing long-term care, skilled nursing, and rehabilitative services. These facilities are governed by the Tennessee State Veterans’ Homes Board and are consistently highly rated.
Locations
- Brigadier General Wendell H. Gilbert Tennessee State Veterans’ Home — 250 Arrowood Drive, Clarksville, TN 37042 | (931) 245-4700 | 108 beds
- Tennessee State Veterans’ Home Cleveland — Cleveland, TN | 108 beds, rustic design with outdoor programs
- W.D. “Bill” Manning Tennessee State Veterans’ Home — 2865 Main Street, Humboldt, TN 38343 | (731) 784-8405
- Ben Atchley Tennessee State Veterans’ Home — Knoxville, TN
- Tennessee State Veterans’ Home Murfreesboro — Murfreesboro, TN (first home, opened 1991)
- Tennessee State Veterans’ Home Arlington — Arlington, TN | 126 beds | Projected to open late 2025
Services
- 24-hour RN care and skilled nursing
- Short-term rehabilitation (physical, occupational, speech therapy)
- Long-term care
- Memory care
- Private rooms with modern amenities
- Transportation to medical appointments
- Recreational activities and social programs
Eligibility
- Honorably discharged veterans
- Tennessee residents or Tennessee natives
- In need of skilled level of care
- Spouses, surviving spouses, and Gold Star parents may also be eligible
There are fees for care, though VA benefits, Medicare, Medicaid, and private insurance may cover costs. Contact Tennessee State Veterans’ Homes for admission information.
Burial Benefits
Tennessee offers burial options through five state veterans cemeteries and five national cemeteries.
State Veterans Cemeteries
- Middle Tennessee State Veterans Cemetery — 7931 McCrory Lane, Nashville, TN 37221 | (615) 532-2238 | Capacity: 30,813 plots
- East Tennessee State Veterans Cemetery (Lyons View) — 5901 Lyons View Pike, Knoxville, TN 37919 | (865) 577-3228 | At capacity; not accepting new applications
- East Tennessee State Veterans Cemetery (John Sevier Highway) — Knoxville, TN | Newer facility with available plots
- West Tennessee State Veterans Cemetery — Memphis, TN
- Tennessee State Veterans Cemetery at Parkers Crossroads — Parkers Crossroads, TN
Eligibility and Costs
- Veterans: Served on active duty and discharged under honorable conditions; must have been a Tennessee resident at time of death or entry into military service
- Veteran Burial Cost: Free
- Dependent Burial Cost: $700 for spouses, minor children, and certain adult dependent children
Pre-Registration
Veterans and dependents can pre-register for burial at Tennessee State Veterans Cemeteries. Complete the online form for your preferred location and mail your DD-214 or NG Form 22 to the cemetery. Pre-registration allows eligibility verification in advance and reduces stress on families at the time of need.
National Cemeteries
Tennessee also has five VA national cemeteries in Nashville, Memphis, Knoxville, Johnson City, and Chattanooga. Contact the National Cemetery Administration at 800-535-1117 for burial scheduling.
How to Apply for Tennessee Veteran Benefits
The Tennessee Department of Veterans Services (TDVS) operates 12 Veterans Services Offices statewide with trained staff who can assist with claims, applications, and appeals—all at no charge.
Tennessee Department of Veterans Services
Address: 312 Rosa L. Parks Avenue, Nashville, TN 37243
Phone: (615) 741-2931
Website: tn.gov/veteran
Key Contacts
- Property Tax Relief: Your local County Trustee’s office
- STRONG Act Tuition: Tennessee National Guard Education Office (Army: ng.tn.tnarng.mbx.ngtn-state-tuition-assistance-army@army.mil; Air: ng.tn.tnarng.mbx.ngtn-state-tuition-assistance-air@army.mil)
- Hunting/Fishing Licenses: Tennessee Wildlife Resources Agency, P.O. Box 41729, Nashville, TN 37204
- State Veterans Homes: tsvh.org
Documents to Have Ready
- DD-214 or NG Form 22 (discharge papers)
- VA Benefits Summary Letter
- VA disability rating letter (if applicable)
- Tennessee driver’s license or state ID
- Property tax receipts (for tax relief applications)
Frequently Asked Questions
No. Tennessee has no state income tax on wages or retirement income, making military retirement pay completely exempt from state taxation. This makes Tennessee one of the most tax-friendly states for military retirees.
Tennessee’s program is a reimbursement, not an exemption. You still receive your tax bill and must pay it. In the first year, you pay in full and submit proof of payment to receive a state refund. In subsequent years, you’ll receive a voucher that reduces what you owe. The state reimburses taxes on up to $175,000 of your home’s market value.
It’s a reimbursement program. You are responsible for paying tuition (or setting up a payment plan), and after completing the semester with the required GPA, you submit documentation to receive reimbursement. Some schools offer deferment plans for STRONG Act students.
Download the TWRA Miscellaneous Licenses Application, complete it, and mail it with proof of your VA disability rating to the Tennessee Wildlife Resources Agency. You cannot purchase this license online or from local agents—it must be done by mail.
Download the TWRA Miscellaneous Licenses Application, complete it, and mail it with proof of your VA disability rating to the Tennessee Wildlife Resources Agency. You cannot purchase this license online or from local agents—it must be done by mail.
Yes. Un-remarried surviving spouses of disabled veterans who were eligible for property tax relief, as well as surviving spouses of service members killed in combat or deployment, may qualify for relief on up to $100,000 of property value.
The Tennessee State Veterans’ Home in Arlington (Shelby County) is under construction and projected to open in late 2025. It will be a 126-bed facility with a neighborhood design featuring private rooms, intimate courtyards, and modern amenities.
No. Unlike the elderly/disabled homeowner program, the disabled veteran property tax relief has no income limit. Qualification is based solely on disability status and property ownership requirements.
Yes. Active-duty service members stationed in Tennessee under permanent orders, and their dependents, may purchase hunting and fishing licenses at Tennessee resident rates.
Disclaimer: 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, please visit the Tennessee Department of Veterans Services or contact your local County Veterans Service Officer.
Sources: Tennessee Department of Veterans Services, MyArmyBenefits, Tennessee Military Department, Tennessee Comptroller, Tennessee Wildlife Resources Agency, Tennessee State Veterans’ Homes