North Carolina Veteran Benefits: State Benefits Guide

• North Carolina has no full property tax exemption for disabled veterans. The first $45,000 of appraised value of the permanent residence is excluded for a veteran with a service-connected, permanent and total disability (or who received benefits under 38 U.S.C. 2101). The statute adds that an owner who receives this exclusion may not receive other property tax relief on the same home, which is a limit on the benefit, not a bonus. Compare every state’s rule in the disabled veteran property tax exemption guide.

  “The first forty-five thousand dollars ($45,000) of appraised value of the residence is excluded from taxation. A qualifying owner who receives an exclusion under this section may not receive other property tax relief.” (G.S. 105-277.1C(a))

• The veteran must have been separated with an honorable or under honorable conditions character of service, and must be a North Carolina resident. On January 1 before the tax year, the veteran must have received benefits under 38 U.S.C. 2101 (specially adapted housing), or hold a VA or other federal certification of a service-connected, permanent and total disability.

  “The veteran has received a certification by the United States Department of Veterans Affairs or another federal agency indicating that, as of January 1 preceding the taxable year for which the exclusion allowed by this section is claimed, he or she has a service-connected, permanent, and total disability.” (G.S. 105-277.1C(b)(1)b)

• The other route is benefits under 38 U.S.C. 2101 as of that January 1. DMVA’s page describes the same two routes as a permanent and total service-connected disability of 100 percent, or specially adapted housing benefits.

  “As of January 1 preceding the taxable year for which the exclusion allowed by this section is claimed, the veteran had received benefits under 38 U.S.C. § 2101.” (G.S. 105-277.1C(b)(1)a)

• The surviving spouse of a disabled veteran who has not remarried qualifies. That includes the surviving spouse of a veteran who died of a service-connected condition that the VA certified as of that January 1, and the spouse must be a North Carolina resident who owns and lives in the home.

  “The surviving spouse of a disabled veteran who has not remarried.” (G.S. 105-277.1C(b)(4a)b)

• A home owned and occupied by a married couple gets the full exclusion even if only one spouse is the qualifying veteran. Co-owners who are not spouses must each apply, and the total for all of them cannot exceed the exclusion.

  “A permanent residence owned and occupied by husband and wife is entitled to the full benefit of this exclusion notwithstanding that only one of them meets the requirements of this section.” (G.S. 105-277.1C(d))

• File during the regular listing period; the county must still accept an application up to and through June 1 before the tax year. DMVA’s steps: complete sections 1 and 2 of form NCDVA-9, take it to your local veterans service office for certification, then send the certified NCDVA-9 and form AV-9 (Application for Property Tax Relief) to your county tax office.

  “An application for the exclusion allowed under this section should be filed during the regular listing period, but may be filed and must be accepted at any time up to and through June 1 preceding the tax year for which the exclusion is claimed.” (G.S. 105-277.1C(f))

• DMVA recommends submitting NCDVA-9 well before June 1, because certification takes time.

  “Take the form to your local veteran’s service office for certification.” (NC DMVA, Veterans Property Tax Relief)

• Deduction for 20+ years of service or medical retirement; Bailey rule for 5+ years of creditable service by Aug. 12, 1989. The deduction covers retirement pay for service in the uniformed services of the United States, and it is taken from adjusted gross income. Retirees with fewer than 20 years of service and no medical retirement may still qualify under the Bailey rule below. See how every state taxes military retired pay.

  “1. Served at least 20 years in the uniformed services.” (G.S. 105-153.5(b)(5a)a.1)

• A medical retirement under 10 U.S.C. Chapter 61 also qualifies, but severance pay from a Chapter 61 separation does not.

  “2. Medically retired under 10 U.S.C. Chapter 61. This deduction does not apply to severance pay received by a person due to separation under 10 U.S.C. Chapter 61.” (G.S. 105-153.5(b)(5a)a.2)

• Survivor Benefit Plan payments to a beneficiary of a retired member who qualifies for the deduction are deductible too.

  “Payments of a Plan defined in 10 U.S.C. § 1447 to a beneficiary of a retired member eligible to deduct retirement pay under sub-subdivision a. of this subdivision.” (G.S. 105-153.5(b)(5a)b)

• Separately, the Bailey settlement lets certain government retirees, including federal retirees, deduct retirement benefits that a court order exempts from tax. An amount taken as the military deduction cannot also be taken on the Bailey line.

  “Amounts deducted under this subdivision may not also be deducted under subdivision (5) of this subsection.” (G.S. 105-153.5(b)(5a))

• The Bailey deduction covers amounts received from State, local or federal government retirement plans to the extent a court order in the Bailey, Emory or Patton cases exempts them. The 50-state military retirement table puts the condition for military retirees as five or more years of creditable service as of August 12, 1989; the statute names the cases and leaves the plans and service conditions to the court orders.

  “The amount received during the taxable year from one or more State, local, or federal government retirement plans to the extent the amount is exempt from tax under this Part pursuant to a court order in settlement of any of the following cases” (G.S. 105-153.5(b)(5))

• The North Carolina Scholarship for the Children of Wartime Veterans is run by DMVA and paid by the State Education Assistance Authority. The statute is G.S. 143B-1223 to 143B-1227. DMVA’s scholarships page was last updated on October 20, 2026 and says the portal is not open yet.

  “The Scholarship Portal will be open soon. Be prepared. Check back soon for the official opening date.” (NC DMVA, Scholarships (last updated 10/20/2026))

• The applicant is the child of the veteran, under 25 at the time of application, a North Carolina domiciliary and resident, a high school (or equivalent) graduate before receiving the scholarship, and in compliance with Selective Service if it applies. The child must also have a North Carolina connection: the veteran parent was a legal resident when entering the wartime service, or the child was born in North Carolina and has lived there continuously.

  “(i) under 25 years of age at the time of application for a scholarship, (ii) who is a domiciliary of North Carolina and is a resident of North Carolina when applying for a scholarship, (iii) who has completed high school or its equivalent prior to receipt of a scholarship awarded under this Part, (iv) who has complied with the requirements of the Selective Service System, if applicable, and (v) who further meets one of the following requirements” (G.S. 143B-1224(3))

• The veteran parent must have served in active federal service during a period of war and been separated under honorable conditions (or still be serving a second or later enlistment). A veteran separated under honorable conditions whose death or disability was incurred in armed conflict or extra-hazardous service is also a veteran for this program.

  “"Veteran" means a person who served as a member of the Armed Forces in active federal service during a period of war and who was either separated from the Armed Forces under honorable conditions or who is currently serving in a second or subsequent enlistment.” (G.S. 143B-1224(7))

• The wartime periods include the Vietnam era (August 5, 1964 to May 7, 1975) and the Persian Gulf War (from August 2, 1990, ending on the date set by Presidential proclamation or concurrent resolution of Congress), among others the statute lists.

  “Vietnam era, meaning the period beginning on August 5, 1964, and ending on May 7, 1975.” (G.S. 143B-1224(4)d)

• Class I-A (full scholarship) is for the child of a veteran killed in action or who died of wartime service-connected causes. Class I-B is a limited scholarship (tuition, matriculation and other fees, and short-term workforce courses, not board or room) for the child of a veteran who is receiving compensation for a wartime service-connected disability of 100 percent, and it becomes Class I-A if the veteran dies of that condition. Class IV (full scholarship) is for the child of a parent listed as missing in action, captured or detained in a period of war.

  “Under this class a limited scholarship providing only those benefits set forth in G.S. 143B-1225(a)(1)a., d., and e., and G.S. 143B-1225(a)(2) shall be awarded to any child whose veteran parent, at the time the benefits pursuant to this Part are sought to be availed of, is or was at the time of his death receiving compensation for a wartime service-connected disability of one hundred percent (100%) as rated by the United States Department of Veterans Affairs.” (G.S. 143B-1226(b)(1), (2) and (5))

• Class II is competitive and includes children of veterans with a wartime service-connected disability of at least 20 percent but less than 100 percent, or veterans awarded a Purple Heart under the circumstances the statute lists. Class III is competitive and includes certain other circumstances, such as a nonservice-connected permanent and total disability pension, a deceased veteran, or combat-zone service. The annual number of Class II and III awards is capped; this page does not state the cap because the sources differ (see below).

  “Generally includes qualifying children of veterans with a wartime service-connected disability of at least 20% but less than 100%, or veterans awarded a Purple Heart under the circumstances specified by law.” (NC DMVA, Scholarship Classifications (Class II))

• One scholarship per child, for up to four academic years, which need not be consecutive. Aid ends eight years after it is first awarded, and the student must keep a cumulative GPA of 2.0.

  “Only one scholarship may be granted pursuant to this Part with respect to each child and it shall not extend for a longer period than four academic years, which years, however, need not be consecutive.” (G.S. 143B-1225(a)(3))

• At a State educational institution (a University of North Carolina campus or a community college) a full scholarship covers tuition, a standard board allowance, a standard room allowance and required fees. It cannot exceed the cost of attendance, and other grants covering the cost of attendance reduce it.

  “A scholarship awarded to a student under this section shall not exceed the cost of attendance at the State educational institution at which the student is enrolled.” (G.S. 143B-1225(a)(1) and (5))

• At a private educational institution the scholarship is a monetary allowance set under G.S. 143B-1227(d). The allowance amount is not stated here; see G.S. 143B-1227(d).

  “With respect to private educational institutions, a scholarship shall consist of a monetary allowance as prescribed in G.S. 143B-1227(d).” (G.S. 143B-1225(a)(2))

• The student must maintain a cumulative GPA of 2.0 throughout the four academic years.

  “A student who has been awarded a scholarship under this section shall maintain a cumulative grade point average of 2.0 throughout the four academic years for which the student is eligible for a scholarship under this section.” (G.S. 143B-1225(a)(6))

• The Disabled Veteran plate is issuable to a veteran with a 100 percent service-connected disability. DMVA verifies the veteran’s credentials before the Division of Motor Vehicles issues a plate based on military service.

  “Issuable to a veteran of the Armed Forces of the United States who suffered a 100% service-connected disability.” (G.S. 20-79.4(a2)(64))

• A Partially Disabled Veteran plate is for a veteran with a service-connected disability of less than 100 percent.

  “Issuable to a veteran of the Armed Forces of the United States who suffered a service connected disability of less than 100%.” (G.S. 20-79.4(a2)(189))

• For DMVA, the Disabled Veteran plate means a combined VA rating of 100 percent, or individual unemployability paid at the 100 percent rate. Every other rating receives a Partially Disabled Veteran certification. The VA rating or Summary of Benefits letter must show the combined rating, be dated, and be no more than one year old.

  “The Disabled Veterans License Plate is reserved for those who have a combined rating of 100% or receive Individual Unemployability (I.U.) and are paid at the 100% rate.” (NC DMVA, Military and Veteran License Plates)

• On request, the Division issues the 100 percent Disabled Veteran plate free of charge each year, one plate for a motor vehicle and one for a motorcycle. The statute lists it among the plates that are free of charge, and for a vehicle of 6,000 pounds or less the regular registration fee does not apply to it: the regular fee is attached only to “all other” special plates (see below) and to vehicles over 6,000 pounds.

  “For the special registration plate listed in subdivision (2) of this subsection, and upon request, the Division shall annually provide and issue free of charge a single registration plate for both a motor vehicle and a motorcycle to a person qualified to receive each plate in accordance with G.S. 20-79.4(a2).” (G.S. 20-79.7(a))

• The free-plate rule does not apply to a vehicle with a registered weight above 6,000 pounds.

  “This subsection does not apply to a special registration plate issued for a vehicle that has a registered weight greater than 6,000 pounds.” (G.S. 20-79.7(a))

• Above 6,000 pounds the G.S. 20-88 registration fees apply, so a Disabled Veteran plate on a heavier vehicle pays them.

  “The regular motor vehicle registration fees in G.S. 20-88 apply if the registered weight of the vehicle is greater than 6,000 pounds” (G.S. 20-79.7(a))

• DMVA says the same in its own words: the Disabled Veteran plate is free and the license plate fee is waived. A personalized message (four spaces) still carries a yearly personalization fee.

  “In recognition to the great cost Veterans have born for our Nation, the following License Plates are free, and the license plate fee waived.” (NC DMVA, Military and Veteran License Plates (FAQ: Is there any cost?))

• Plates not on the free list, including the Partially Disabled Veteran plate, pay the regular motor vehicle registration fee, and the fee table lists no additional plate fee for the Partially Disabled Veteran plate. For a vehicle of 6,000 pounds or less the regular registration fee does not apply to the free 100 percent plate but does apply here.

  “All other special registration plates are subject to the regular motor vehicle registration fee in G.S. 20-87 or G.S. 20-88 plus an additional fee in the following amount” (G.S. 20-79.7(a1), fee table (Partially Disabled Veteran: None))

• A North Carolina resident who is a veteran rated 50 percent or more disabled by the VA (or as established by rules of the Wildlife Resources Commission) can buy a Resident Disabled Veteran Lifetime Unified Sportsman/Coastal Recreational Fishing License. It is a one-time $110 purchase, not free, according to the statute as captured on March 15, 2025. It covers taking wild animals and wild birds including waterfowl, fishing with hook and line in inland and joint waters including public mountain trout waters, and coastal recreational fishing.

  “Resident Disabled Veteran Lifetime Unified Sportsman/Coastal Recreational Fishing License. - $110.00. This license shall be issued only to an individual who is a resident of the State and who is a fifty percent (50%) or more disabled veteran as determined by the United States Department of Veterans Affairs or as established by rules of the Wildlife Resources Commission.” (G.S. 113-351(c)(3)f)

• DMVA says the license is valid for life only while the veteran stays at 50 percent or more disabled, and VA certification must be submitted with the application. A veteran under 50 percent disabled does not qualify for this license; DMVA points to the Wildlife Resources Commission for other lifetime licenses.

  “This license shall be issued only to an individual resident of North Carolina who is a fifty percent or more disabled veteran as determined by the U.S. Department of Veterans Affairs, remaining valid for the lifetime of the individual so long as the individual remains fifty percent or more disabled.” (NC DMVA, Hunting and Fishing License Application)

• A separate $110 Resident Totally Disabled Lifetime license is for a resident who is totally and permanently disabled as determined by the Social Security Administration, not by the VA.

  “Resident Totally Disabled Lifetime Unified Sportsman/Coastal Recreational Fishing License. - $110.00.” (G.S. 113-351(c)(3)g)

• Any resident or nonresident who served in the Armed Forces and separated under honorable conditions is exempt from the Mountain Heritage Trout fishing license in waters the Commission designates as Mountain Heritage Trout waters, and must carry valid documentation of service while fishing.

  “A resident or nonresident of this State who served as a member of the Armed Forces and who separated under honorable conditions is exempt from the Mountain Heritage Trout fishing license requirements of G.S. 113-271(d)(10) while fishing in waters designated by the Wildlife Resources Commission as Mountain Heritage Trout waters. In order to qualify for the exemption provided under this subsection, the person shall have valid documentation of their service on his or her person at all times during the fishing activity.” (G.S. 113-276(l3))

• The statute describes North Carolina’s State preference as credit: in evaluating an eligible veteran against the minimum requirements for a position, the State Human Resources Commission gives credit for military training, schooling and experience that bears a reasonable and functional relationship to the job.

  “The State Human Resources Commission shall provide that in evaluating the qualifications of an eligible veteran against the minimum requirements for obtaining a position, credit shall be given for all military service training or schooling and experience that bears a reasonable and functional relationship to the knowledge, skills, and abilities required for the position.” (G.S. 126-82(a))

• In the G.S. 126-81 copy captured August 6, 2025, an eligible veteran is first a veteran who served during a period of war. Other eligible persons include the spouse of a disabled veteran, a veteran with a service-connected disability from peacetime, and certain surviving spouses and dependents.

  “A veteran who served during a period of war.” (G.S. 126-81(3)a)

• For this Article a veteran is someone who served on active duty for reasons other than training and was discharged under other than dishonorable conditions.

  “A person who served in the Armed Forces of the United States on active duty, for reasons other than training, and has been discharged under other than dishonorable conditions.” (G.S. 126-81(2))

• DMVA says that in July 2026 the Governor signed Senate Bill 1041 (S.L. 2026-40, the Public Workforce Modernization Act), expanding the employment preference to the spouses of active-duty servicemembers. As of October 30, 2026 this page does not state when that change takes effect or how the statute now reads.

  “In July 2026, Governor Josh Stein signed Senate Bill 1041, expanding this employment preference to the spouses of active-duty servicemembers.” (NC DMVA, Employment)

• The bill page shows the act, numbered S.L. 2026-40, with last action on July 7, 2026.

  “Ch. SL 2026-40 on 7/7/2026” (N.C. General Assembly, Senate Bill 1041 bill page)

• DMVA runs State Veterans Homes in Black Mountain, Fayetteville, Kernersville, Kinston and Salisbury. Their admission rules and charges are not stated here.

  “Black Mountain State Veterans Home Fayetteville State Veterans Home Kernersville State Veterans Home Kinston State Veterans Home Salisbury State Veterans Home” (NC DMVA, State Veterans Homes)

• The homes are licensed by the State and approved for Medicare, Medicaid and third party insurance. What a resident pays is not stated on the DMVA page.

  “Licensed by the State of North Carolina and approved for Medicare, Medicaid and third party insurance.” (NC DMVA, State Veterans Homes)

• DMVA’s State Veterans Cemeteries are Coastal Carolina, Eastern Carolina, Sandhills and Western Carolina.

  “Coastal Carolina State Veterans Cemetery Eastern Carolina State Veterans Cemetery Sandhills State Veterans Cemetery Western Carolina State Veterans Cemetery” (NC DMVA, State Veterans Cemeteries)

• The cemeteries give an eligible North Carolina veteran and legal spouse a free burial plot. A veteran must have been discharged under honorable conditions.

  “A free burial plot is provided at a North Carolina State Veterans Cemetery for eligible North Carolina veterans and their legal spouse (and dependents under certain conditions). Veterans must be discharged under honorable conditions.” (NC DMVA, State Veterans Cemetery Eligibility Requirements)

• The gravesite and necessary interment services cost a qualified veteran nothing; a spouse or family member pays a burial fee, which DMVA does not state on this page.

  “There is no charge for the gravesite or necessary interment services for a qualified Veteran. There is, however, a burial fee for an eligible spouse or family member.” (NC DMVA, State Veterans Cemetery Eligibility Requirements, General Policy)

• A qualified veteran is any former member of the Armed Forces who served on active duty and was discharged under honorable conditions. A reservist or guardsman who is entitled to retired pay for non-regular service, or would be but for being under 60, also qualifies, and so does one called to active duty by Executive Order who served the full period.

  “Any former member of the U.S. Armed Forces who served on active duty and was discharged under honorable conditions.” (NC DMVA, State Veterans Cemetery Eligibility Requirements)

• Session Law 2026-40 (Senate Bill 1041): DMVA says it extends the employment preference to military spouses; its effective date and exact wording are not confirmed here. Check the bill on the General Assembly website. G.S. 126-81 and 126-82 above are Internet Archive copies captured before the law was signed in July 2026, so they may not show its changes.
• The annual cap on Class II and Class III scholarship awards. The G.S. 143B-1226 copy captured February 5, 2025 says not more than 100 children yearly; DMVA’s page of October 2026 says No more than 200 scholarships of this class are awarded per year. This page states neither number.
• Whether North Carolina taxes VA disability compensation, and any annual NC registration fee amount: the statute pages and DMVA pages cited here do not address them, so this page makes no statement.
• The current lifetime license fee. The $110 comes from the statute as captured on March 15, 2025; check the Wildlife Resources Commission fee page for the current price.
• State Veterans Home admission rules and charges, state cemetery spouse burial fees, vehicle property tax relief for veterans, state park discounts, and county or city veteran programs.
• Any 2026 ballot measure about veterans: none appears in the sources cited here; check the North Carolina State Board of Elections.

Federal VA compensation is separate. For monthly VA pay by rating see the VA disability pay chart 2026.

• Disabled veteran property tax exemption by state – all 50 states compared
• States that tax military retirement – every state’s rule for retired pay
• VA disability pay chart 2026 – federal monthly VA compensation by rating
• VA benefits by disability rating – what each rating unlocks
• VA disability calculator – combined rating and monthly compensation

• Texas veteran benefits – Hazlewood tuition, plates, hunting and state parks
• Florida veteran benefits – property tax exemption, plates, licenses and state parks
• California veteran benefits – property tax exemptions, College Fee Waiver and CalVet
• Virginia veteran benefits – property tax exemption, military pay subtraction and tuition waiver
• Illinois veteran benefits – property tax exemptions, Illinois Veteran Grant, plates and licenses
• Arizona veteran benefits – property tax, vehicle fee waiver, licenses and spouse tuition
• Ohio veteran benefits – homestead exemption, scholarships for children, plates and licenses