State file · IN
Veteran benefits in Indiana
Indiana pairs property tax deductions for disabled veterans with free tuition for children of disabled veterans and Purple Heart recipients, the Hoosier Golden Passport for state parks, and a relocation incentive program for veterans taking Indiana jobs. Here's the landscape, category by category.
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Financial benefits
Income tax breaks on military pay
Up to $5,000 of active duty pay and up to $6,250 of retired pay are free of Indiana income tax. Effective January 1, 2019, an adjusted gross income tax deduction is also available for military retirement or survivor's benefits.
Military spouse income deduction
Under the Military Spouses Residency Relief Act, military spouses may maintain their tax domicile for income earned after December 31, 2008.
DIC not taxed
Dependency and Indemnity Compensation is a tax-free monetary benefit paid to eligible survivors of service members who died in the line of duty.
Disabled veteran property tax deduction
A $24,960 assessed-value deduction is available to honorably discharged wartime veterans with at least a 10% VA disability. Alternatively, up to a $12,480 deduction is available to veterans who are at least 62 with at least a 10% VA disability or who have a VA total disability, provided the property's assessed value does not exceed $175,000.
Sales tax picture
Statewide sales tax is 7.0% with no additional county sales tax, so the combined average is 7.0%.
Recreation
Hoosier Golden Passport
Provides unlimited admission to all Indiana state-owned parks, recreation areas, reservoirs, forests, historic sites, museums, and memorials.
Hunting & fishing license discounts
Any Indiana resident with a VA service-connected disability can buy a hunting and fishing license at a reduced fee, and active duty Indiana residents with leave orders and valid ID are exempt from purchasing licenses.
Education programs
Free tuition for children of disabled veterans
Indiana offers free tuition and fees for 124 credit hours at state schools to children of disabled veterans, Purple Heart recipients and their children, and children of former POW/MIA service members. The veteran must have been an Indiana resident for 36 consecutive months and served during a wartime period (including August 2, 1990 to the present) or received a Purple Heart.
Free tuition for Purple Heart recipients
Indiana residents awarded the Purple Heart are eligible for free tuition and fees at Indiana state schools.
National Guard deployment protection
National Guard members from Indiana or an adjoining state attending an Indiana public university are entitled to a tuition refund or credit and guaranteed re-enrollment if called to active duty.
USS Indiana crew in-state tuition
Sailors from any state who serve on the USS Indiana submarine for at least 180 days can pay in-state tuition at Indiana public universities if they enroll within one year of an honorable discharge.
Veteran housing
Indiana State Veterans Home
The Indiana State Veterans Home at West Lafayette serves honorably discharged veterans who meet a 12-month state residency requirement; spouses, surviving spouses, and Gold Star parents are also eligible, with monthly costs based on income.
Employment & job training
State hiring preference
Indiana offers veterans preference in state government jobs for honorably discharged veterans.
Military CDL skills waiver
The BMV may waive the required drive skills test for veterans with specific training who worked as truck drivers during their military service.
Next Level Veterans Program
The state helps veterans apply for jobs with dozens of participating corporations and pays a $5,000 relocation benefit to those hired who move to Indiana.
Burials & memorials
National cemeteries in Indiana
Indiana's national cemetery sites include Crown Hill National Cemetery and the Crown Hill Confederate Plot in Indianapolis, Marion National Cemetery, New Albany National Cemetery, and the Woodlawn Monument Site in Terre Haute.
VA resources in Indiana
Indianapolis Regional Benefits Office
The VA regional office serving Indiana for benefits claims and questions; the VA Midwest District office is also based in Indianapolis.
Official siteRichard L. Roudebush VA Medical Center
VA medical care for central Indiana, based in Indianapolis.
Official siteVA Northern Indiana Health Care System
VA medical care for northern Indiana, with campuses in Fort Wayne and Marion.
Official siteBefore you apply
- First-time applicants generally need a copy of their DD-214 or discharge paperwork — keep certified copies somewhere safe.
- Most programs require a discharge under other than dishonorable conditions; a dishonorable or bad-conduct discharge may bar eligibility.
- “Active service” has a specific definition for many programs — training periods don’t always count. When in doubt, ask the agency directly.
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