State file · NC
Veteran benefits in North Carolina
North Carolina pairs a substantial property tax break for 100% disabled veterans with four state veterans homes and a long-running scholarship for children of wartime veterans. Here's how the benefits break down.
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Financial benefits
Military retirement pay
Military retired pay is exempt from state income tax for service members who had five years of creditable service as of August 12, 1989; for later retirees, North Carolina's post-2014 rules do not allow deductions for private or government retirement distributions.
Property tax deduction
Honorably discharged veterans with a 100% permanent disability rating are eligible for up to a $45,000 deduction in the assessed value of their home; surviving spouses drawing Dependency and Indemnity Compensation also qualify.
Military disability retirement pay
Exempt from state taxation if the recipient met qualifying conditions before September 25, 1975, or receives payments for a combat-related injury.
Dependency and Indemnity Compensation
DIC is a tax-free benefit for eligible survivors of service members who died on duty or from service-related conditions; dividends and most proceeds from G.I. insurance policies are also exempt from income taxation.
Military Spouses Residency Relief Act
North Carolina does not tax a spouse's income when the service member is stationed in the state under military orders and both are domiciled in the same home state.
Sales tax picture
Statewide sales tax is 4.75%, with county additions of up to 2.75%; the combined average is roughly 6.92%.
Recreation
Hunting & fishing license discounts
The Wildlife Resources Commission offers discounted hunting and fishing licenses for eligible disabled veterans.
Resident rates for military members
Active-duty members stationed in North Carolina, their spouses, and dependents under 18 qualify for resident license rates, and members stationed out of state are also treated as residents for short-term and annual licenses.
Education programs
National Guard Tuition Assistance Program (NCTAP)
Provides tuition assistance for active North Carolina National Guard members; funding is subject to availability.
In-state tuition
Active-duty members stationed in North Carolina and their dependents qualify for in-state tuition, and they keep the benefit if reassigned while continuously enrolled.
Scholarship for Children of Wartime Veterans
Covers up to eight semesters of tuition at North Carolina schools for eligible children of deceased, disabled, combat, or POW/MIA veterans. Applicants must be under 25, North Carolina residents, and apply by February 14.
Interstate Compact on Educational Opportunity for Military Children
Removes barriers for military children transferring schools, covering enrollment, placement, participation in activities, and on-time graduation.
Veteran housing
North Carolina State Veterans Homes
Four state veterans homes operate at Black Mountain, Fayetteville, Kinston, and Salisbury. Eligibility generally requires Armed Forces service with deployment, a discharge other than dishonorable, North Carolina residency for at least 24 months before applying, a referral from a licensed physician, and a need for skilled nursing care.
Employment & job training
State hiring preference
Honorably discharged veterans receive 5 points added to state examination scores; veterans with a service-connected disability receive 10 points.
Military leave and differential pay
State employees in the National Guard or Army Reserve receive up to 120 hours of military leave per fiscal year, and the state may cover the difference between military and state salary when military pay is lower.
USERRA protections
Federal law protects the job rights and benefits of Reserve and National Guard members returning from duty.
Burials & memorials
National cemeteries in North Carolina
Options include New Bern National Cemetery, Raleigh National Cemetery, Salisbury National Cemetery, and Wilmington National Cemetery.
VA resources in North Carolina
Winston-Salem Regional Benefit Office
The VA regional office serving North Carolina for benefits claims and questions.
Official siteFayetteville VA Medical Center
VA medical care for the Fayetteville area and coastal region.
Before 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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