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Illinois veteran disability benefits

State benefits that Illinois offers veterans with a service-connected disability, on top of your federal VA compensation. Each one links to its official source. This is educational information, not legal advice, and Illinois's agency makes the final eligibility call.

Property taxTypically requires a 30%+ combined rating

Standard Homestead Exemption for Veterans with Disabilities (tiered)

Veterans rated 70%+ are fully exempt from property tax on their primary residence; 50-69% get a $5,000 EAV reduction and 30-49% get $2,500.

Tiers: 30-49% = $2,500; 50-69% = $5,000; 70%+ = full exemption. File Form PTAX-342.

Official source (verified 2026-06-08)
Income tax

Military Pay and Retirement Subtracted

Illinois does not tax military pay and lets you subtract the federally-taxed portion of military retirement; VA disability is tax-free.

Not rating-gated (Schedule M / IL-1040).

Official source (verified 2026-06-08)
EducationTypically requires a 100%+ combined rating

MIA/POW Veterans' Dependents Scholarship

Spouses and children of veterans who are 100% disabled (or died of/in service) attend Illinois state-supported schools tuition- and fee-free.

For the disability path the veteran must be 100% service-connected disabled.

Official source (verified 2026-06-08)
Recreation & licensesTypically requires a 10%+ combined rating

Free Hunting/Fishing Licenses + Camping Fee Waiver

Veterans receiving 10%+ compensation get free hunting/fishing licenses; those at 100% (or with qualifying mobility disability/POW) are exempt from state-park camping fees.

Camping-fee exemption requires 100% compensation, qualifying permanent loss-of-use, or former-POW status.

Official source (verified 2026-06-08)
Vehicle & DMVTypically requires a 50%+ combined rating

ISERVE / Disabled Veteran License Plates

Service-connected veterans rated 50%+ get the first set of ISERVE plates at no cost.

The separate DV parking plate requires physician certification rather than a set percent.

Official source (verified 2026-06-08)

Most state benefits scale with your VA combined rating.

Estimate your combined rating for free, then see what you can claim to reach the thresholds above.

VA Disability Pro is an independent tool. It is not the VA, not a law firm, and not a VA-accredited representative. State benefits and eligibility change; always confirm with the official sources linked above.