Kentucky veterans benefits

Kentucky's only operative residential property tax exemption. Deducts a set amount from the assessed value of the owner-occupied primary residence for homeowners who are age 65+ OR classified as totally disabled (receiving disability payments for the full assessment period). A veteran rated 100% total/permanent service-connected by the VA qualifies under the 'totally disabled' prong. There is no graduated VA-rating-based exemption in current Kentucky law, a graduated bill (HB 639, 2025) died in committee and the KY Constitution Section 170 does not authorize a veteran-specific exemption without an amendment. Apply once with Revenue Form 62A350 at the county PVA; veterans need not reapply annually.

Kentucky does not fully exempt military retirement pay (contrary to several aggregator sites). Up to $31,110 of all pension/retirement income, including military retirement, may be excluded for tax years 2018+. Retirement pay attributable to service performed before January 1, 1998 may be fully excluded via Kentucky Schedule P (the pre-1998 portion is 100% exempt; the post-1997 portion shares the $31,110 cap). KY individual income tax is a flat rate (4.0% for 2026).

VA disability compensation (service-connected disability pay) is not included in Kentucky taxable income. This follows the federal exclusion (it is not part of federal adjusted gross income, KY's starting point) and is confirmed by the Kentucky Department of Veterans Affairs. No rating threshold; any VA disability payment is excluded.

Waives tuition at Kentucky public two-year, four-year, and vocational/technical schools for the children, stepchildren, spouse, and un-remarried widow(er) of a qualifying veteran. The veteran must have died on active duty, died as a direct result of a service-connected disability, be rated 100% service-connected disabled by the VA, or be totally disabled (non-service-connected) with wartime service (or be a deceased KY-resident wartime veteran). Covers tuition only, not room/board, books, or fees. Private and out-of-state schools do not qualify.

Under KRS 18A.150, veterans (and in some cases their family members) with an Honorable or General (Under Honorable Conditions) discharge receive interview preference for merit-system positions in Kentucky state government. After a vacancy closes, the Personnel Cabinet HR Certification Branch reviews all veteran-preference applicants who submitted required documentation (DD-214). This is an interview/consideration preference, not a points-based hiring guarantee.

Kentucky residents (and non-residents stationed in KY) with a service-connected disability rating of at least 50% from the VA are eligible for one Disabled Veteran license plate free of charge. HB 55 (2023) amended KRS 186.162 to lower the fee-exemption threshold from 100% down to 50% service-connected. Apply via the 'Application for Disabled Veterans Free Certificate of Registration and License Plates' at the county clerk's office.

Kentucky resident veterans with a 50%+ service-connected VA disability rating qualify for the discounted Disabled Sportsman's License at $12/year, which bundles combination hunting & fishing, all deer permits, spring and fall turkey permits, the Kentucky migratory bird/waterfowl permit, and the trout permit. Veterans must first obtain a disability license authorization number (valid three years) from the KY Dept. of Fish & Wildlife (1-800-858-1549), then purchase the license at fw.ky.gov.

Kentucky operates four state veterans nursing/long-term care homes: Thomson-Hood Veterans Center (Wilmore, 285 beds), Paul E. Patton Eastern Kentucky Veterans Center (Hazard, 120 beds), Joseph E. 'Eddie' Ballard Western Kentucky Veterans Center (Hanson, 120 beds), and Carl M. Brashear Radcliff Veterans Center (Radcliff, 120 beds). Applicants must be a Kentucky resident veteran with a discharge other than dishonorable.