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Best Veteran State Benefits

Federal VA benefits like the GI Bill and disability compensation are well-known for good reason, but they're only part of the picture. Some of the best veteran state benefits flying under the radar can be just as valuable, and in certain cases even more impactful than what's available at the federal level.

Below, we've outlined eight of the best veteran state benefits to help you understand what's out there and whether your state has something worth taking advantage of.

The Best Veteran State Benefits

State

Benefit

Category

Who it’s For

What You Get

Texas

Hazlewood Act

Education

Veterans + dependents

150 free credit hours

Illinois

Illinois Veterans Grant

Education

Wartime veterans

Full tuition + fees

Connecticut

State Tuition Waiver

Education

Wartime veterans

100% tuition waived

Florida

C.W. Bill Young Waiver

Education

Florida-resident veterans

In-state tuition rate

Virginia

Property Tax Exemption

Housing

100% P&T veterans

Full homestead exemption

Alabama

Purple Heart Waiver

Education

Purple Heart recipients

Full tuition + fees

Alaska

Veterans Mortgage Program

Housing

Recently discharged veterans

Below-market fixed-rate loan

Michigan

Property Tax Exemption

Housing

100% disabled veterans

Full homestead exemption

Texas - Hazelwood Act

What it is: Up to 150 semester credit hours of tuition and mandatory fee exemptions at any Texas public college, university, or technical school. However, it does not cover books, housing, or living expenses.

What makes it notable: Unused hours can be transferred to a dependent child through the Hazlewood Legacy Act. Spouses and dependent children of veterans who died in the line of duty or became totally disabled each receive their own 150-hour exemption.

Who qualifies: Honorably discharged veterans with at least 181 days of active duty (excluding training) who were Texas residents at enlistment or enlisted in Texas. Federal education benefits must be exhausted or not exceed the Hazlewood benefit value for that semester.

How to apply: Submit a Hazlewood application to your school's veterans office each semester. Have your DD-214 ready.

Illinois - Illinois Veterans Grant

What it is: Full tuition and mandatory fee coverage at any Illinois state-supported college, university, or community college, for up to 120 eligibility units (roughly equivalent to credit hours). It covers both undergraduate and graduate study.

What makes it notable: This is a statutory entitlement, meaning eligible veterans receive the benefit regardless of how the state funds it in a given year. Schools are required to waive costs even when state reimbursement is partial.

Who qualifies: Veterans who lived in Illinois for six months before entering service and returned within six months of discharge, with at least one year of active duty and an honorable discharge. Veterans who have been Illinois residents for at least 15 consecutive years after leaving active duty also qualify.

How to apply: Apply once through the Illinois Student Assistance Commission (ISAC) student portal. Allow up to 12 weeks for initial processing.

Connecticut - State Tuition Waiver

What it is: 100% tuition waiver for eligible wartime veterans enrolled in undergraduate or graduate programs at Connecticut State Universities, for fall and spring semesters. Community colleges waive tuition for full or part-time credit study, excluding summer and intersession courses.

What makes it notable: The waiver stacks on top of Post-9/11 GI Bill benefits. It covers any tuition remaining after federal benefits are applied. Surviving spouses and dependent children of service members killed in action on or after 9/11 are also eligible.

Who qualifies: Connecticut residents with at least 90 cumulative days of active duty during a recognized period of war (Korean War through present), with an honorable discharge or a qualifying other-than-honorable discharge.

How to apply: Submit a DD-214 and State Veterans Tuition Waiver application to your school's veterans affairs office each semester.

Florida - C.W. Bill Young Waiver

What it is: A waiver of the out-of-state portion of tuition and fees at Florida public postsecondary institutions for honorably discharged veterans who physically reside in Florida. This should not be confused with a full tuition waiver, as its purpose is to reduce out-of-state costs to in-state rates.

What makes it notable: Veterans who relocate to Florida and enroll before establishing official residency for tuition purposes would otherwise pay out-of-state rates, and this waiver is designed to eliminate that gap. It extends to the spouses and dependent children of veterans who are physically residing in Florida and actively using GI Bill benefits.

Who qualifies: Honorably discharged veterans of the U.S. Armed Forces, Reserve Forces, or National Guard who physically reside in Florida while enrolled. Veterans already classified as Florida residents for tuition purposes do not need this waiver.

How to apply: Submit a DD-214 and proof of Florida residency to your institution's veterans office each term.

Virginia - Property Tax Exemption

What it is: Full real property tax exemption on the principal residence and up to one acre of land for qualifying disabled veterans. Veterans with a 100% Permanent and Total (P&T) disability rating are also exempt from personal property tax on one automobile or pickup truck, and qualify for a Sales and Use Tax exemption on one vehicle purchase.

What makes it notable: Surviving spouses retain the real estate exemption as long as they don't remarry and continue to occupy the property. The vehicle exemption does not transfer to surviving spouses.

Who qualifies: Veterans with a 100% service-connected, permanent, and total (P&T) disability rating. Veterans rated below 100% who receive VA benefits at the 100% rate due to Individual Unemployability, and who are rated P&T, also qualify.

How to apply: File through your local commissioner of the revenue or county tax assessor with a VA Summary of Benefits letter confirming P&T status.

Alabama - Purple Heart Waiver (Education)

What it is: Full tuition and fee waiver at Alabama state-supported public colleges and universities for Purple Heart recipients pursuing an undergraduate degree. It covers up to 125% of the program's required credit hours.

What makes it notable: The 125% ceiling gives recipients room beyond standard graduation requirements. The waiver applies after all other education benefits, except those partially funded by the veteran, so it's most valuable for veterans with partial federal coverage or who have exhausted their GI Bill benefits.

Who qualifies: Alabama residents who received the Purple Heart and were Alabama residents at the time of the military action that earned the award. They must, however, be enrolled in an undergraduate program at an Alabama state-supported institution.

How to apply: Submit your DD-214 and Purple Heart documentation to the financial aid or veterans office at your institution.

Alaska - Veterans Mortgage Program (Housing)

What it is: Below-market, fixed-rate home loans through the Alaska Housing Finance Corporation (AHFC) for eligible veterans. This can be combined with a VA loan guarantee or private mortgage insurance. AHFC also offers a separate Veterans Interest Rate Preference, a 1% rate reduction on the first $50,000 of a home loan, which cannot be combined with the Veterans Mortgage Program but is available through participating lenders.

What makes it notable: Alaska's housing costs are high relative to most of the country. State-level mortgage assistance has a greater practical impact here than in lower-cost markets.

Who qualifies: Veterans discharged under other than dishonorable conditions within 25 years of their discharge date. Active duty personnel must have completed their initial military obligation.

How to apply: Contact an AHFC-approved lender with your DD-214 and Certificate of Veterans Eligibility or Title 38 letter.

Michigan - Property Tax Exemption (Housing)

What it is: Full homestead property tax exemption for veterans with a 100% service-connected disability. This benefit applies to the primary residence and transfers to a surviving spouse who has not remarried.

What makes it notable: While Michigan state taxes are in the middle of the pack in the Midwest, property taxes run above the national average and are assessed at the county, township, city or village, and school district levels. Bills add up fast, especially in counties like Washtenaw and Ingham. Annual savings from the exemption commonly run into the thousands.

Who qualifies: Michigan residents with a 100% service-connected disability rating from the VA. Surviving spouses of qualifying veterans also qualify, provided they don't remarry.

How to apply: File an affidavit with your local township or city assessor's office with your VA disability determination letter.

If Your State Isn’t on This List

Every state has its own veteran benefits, and many programs not covered here are worth pursuing. Here are three steps to find what your state offers:

  1. Start with your state Department of Veterans Affairs.

    Every state has one. A web search for "[your state] department of veterans affairs" will find the official site. These pages list every state-administered benefit and link directly to applications.

  2. Use a County Veteran Service Officer (CVSO).

    Most counties employ accredited CVSOs who help veterans apply for state and federal benefits at no charge. They know which programs you qualify for, including ones not widely advertised. Find yours through the National Association of County Veterans Service Officers (NACVSO) directory.

  3. Check VA.gov for the federal baseline.

    State benefits are layered on top of federal ones. Knowing what you're entitled to federally, whether it’s disability compensation, GI Bill, VA home loan or healthcare, helps you avoid duplicating effort and identify gaps that state programs may fill.

A few categories worth specifically asking about in your state: property tax exemptions tied to disability rating, state income tax treatment of military retirement and VA disability, education benefits for veterans and dependents, veteran hiring preferences for state jobs, and free or discounted hunting and fishing licenses.

Before You Apply

Program details, eligibility requirements, and funding levels change. The information above is drawn from official state sources and verified as of May 2026. However, you will want to confirm the current requirements directly with your state's Department of Veterans Affairs or CVSO before acting on them.

Don’t Forget to Claim What you’ve Already Earned

While there are various programs for veterans to access, ultimately, the best veteran state benefits are the ones that you actually claim. Every state has programs that can save veterans money, often more than veterans realize. Whether you’re in one of the eight states outlined here or anywhere else, the path is the same. Reach out to a VA representative or CVSO and find out what you actually qualify for.

Your service earned these benefits, but you still need to go get them.

Author
Steve Parker
Colonel, U.S. Army (Retired); former Battalion Commander
Steve Parker was a career Army Officer for 28 years and is currently the Principal Advisor for Veteran Engagement Solutions, an executive advisory and management consulting firm. His Army leadership roles included Battalion Commander, Foreign Area Officer in Africa and multiple tours in the White House supporting President Bush and President Obama administrations. His work as Executive Director of Joining Forces and as a White House Fellow, where he helped shape national efforts to support veterans’ transition to civilian life, drives his passion for service and support of veteran families.