Indiana Military and Veterans Benefits

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Education Benefits
Employment Benefits
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Summary of Indiana Military and Veterans Benefits: The State of Indiana offers special benefits for its military Service members and Veterans including State Income Tax Exemptions, Retired Military Pay and Property Tax Exemptions, Education and Tuition Assistance, Special Military Vehicle Tags, as well as Hunting and Fishing License and State Park privileges. Eligibility for some benefits may depend on residency, military component, and Veteran disability status.

Indiana State Military and Veterans Benefit Highlights and Eligibility

What are my Indiana Military and Veterans State Tax Benefits? 

Indiana Income Tax for Retirement Income and Survivor's Benefits: New - Effective 1 January 2019 an adjusted gross income tax deduction for income from retirement or Survivor's benefits received during the taxable year by the individual, or the individual's Surviving Spouse, for the individual's service in an active or reserve component of the Armed Forces of the United States, including the Army, Navy, Air Force, Coast Guard, Marine Corps, Merchant Marine, Indiana Army National Guard, or Indiana Air National Guard. The amount of the deduction is:

  • six thousand two hundred fifty dollars ($6,250) plus the following:

    • For taxable years beginning in 2019, twenty-five percent (25%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).

    • For taxable years beginning in 2020, fifty percent (50%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).

    • For taxable years beginning in 2021, seventy-five percent (75%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).

    • For taxable years beginning in 2022 and in the future, one hundred percent (100%) of the amount of the benefits.

Learn more about the Indiana Income Tax Deduction for Military Retirement Income and Survivor's Benefits

Indiana Nonresident Military Spouse Earned Income Deduction: The Military Spouses Residency Relief Act (P.L. No. 111-97) was signed into law on Nov 11, 2009. This law allows a military Service member's Spouse to keep a tax domicile throughout the marriage under certain conditions and applies to income earned after Dec 31, 2008.
Who is eligible for the Indiana Nonresident Military Spouse Earned Income Deduction?
An Indiana nonresident military Spouse may be eligible for a deduction if:

  • Indiana is not the military Service member's state of domicile as reported on the Service member's Form DD-2058;

  • The military Service member and Spouse are domiciliaries of the same state;

  • The military Service member is in Indiana on military orders;

  • The military Service member's Spouse is in Indiana in order to live with the Service member and resides at the same address; and

  • The Indiana-source earned income is included on Indiana Schedule A on line 1B, 2B and/or 7B.

Earned income for the purposes of this deduction includes:

  • Wages, salaries, tips, and other compensation from Indiana sources, and/or;

  • Income from a sole proprietorship (reported on federal Schedule C or C-EZ) from Indiana sources.

To determine eligibility for the claim, complete the Indiana Department of Revenue, Nonresident Military Spouse Earned Income Deduction, Schedule IN-2058SP .

Learn more about the Indiana Nonresident Military Spouse Earned Income Deduction

Indiana Military Disability Retired Pay Income Tax Deduction: Disabled retirees receiving disability retirement pay may be eligible to subtract up to $5,200 of their payments from gross income.
Who is eligible for the Indiana Military Disability Retired Pay Income Tax Deduction?
To qualify for this deduction, you must have:

  • Been permanently and totally disabled at the time of retirement;

  • Retired on disability before the end of the tax year; and

  • Received disability retirement income.

A physician's statement must accompany the deduction sheet for each person claiming the deduction. The amount subtracted is limited to the amount of disability pay received or $100/week, whichever is less. Also, this may have to be reduced by part of the retiree's federal adjusted gross income.

Spouses may also be eligible to subtract up to $5,200 of disability payments (for a maximum of $10,400) if the couple files a joint return and the Spouse meets all of the above requirements.

Please view Indiana Department of revenue, Disability Retirement Deduction, Schedule IT-2440 and Indiana Department of Revenue, Information Bulletin #70 for more information.

Learn more about the Indiana Military Disability Retired Pay Income Tax Deduction

Indiana State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation: Dependency and Indemnity Compensation (DIC) is a tax-free monetary benefit paid to eligible survivors of military Service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-related injury or disease.

Learn more about Indiana State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation 

Military Survivor Benefit Plan (SBP)/ Reserve Component Survivor Benefit Plan (RCSBP)/ Retired Serviceman’s Family Protection Plan (RSFPP) Indiana State Tax Benefits: New - Effective 1 January 2019 an adjusted gross income tax deduction for income from Survivor's benefits received during the taxable year by a Service member’s Surviving Spouse. The amount of the deduction is:

  • six thousand two hundred fifty dollars ($6,250) plus the following:

    • For taxable years beginning in 2019, twenty-five percent (25%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).

    • For taxable years beginning in 2020, fifty percent (50%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).

    • For taxable years beginning in 2021, seventy-five percent (75%) of the amount of the benefits in excess of six thousand two hundred fifty dollars ($6,250).

    • For taxable years beginning in 2022 and in the future, one hundred percent (100%) of the amount of the benefits.

Learn more about the Military Survivor Benefit Plan (SBP)/ Reserve Component Survivor Benefit Plan (RCSBP)/ Retired Serviceman’s Family Protection Plan (RSFPP) Indiana State Tax Benefits

Indiana Disabled Veterans Property Tax/Excise Tax Deductions: Property tax deductions are available to disabled Hoosier Veterans under the following conditions:

Deduction for Totally Disabled Veteran or Veteran age 62 and Partially Disabled: ( IC 6-1.1-12-14 ) A $14,000 dollar deduction is available to a Veteran who:

  • Served at least 90 days of honorable service (can be peacetime service); AND

  • Are totally disabled (not necessarily service-connected but the disability must be evidenced by a U.S. Department of Veterans Affairs pension certificate); OR

  • Are at least 62 years old and 10% service-connected disabled.

Note: This deduction is not available if the assessed value of the real property owned by the Veteran is in excess of $200,000.

Deduction for Veteran with Partial Disability/ Limitations: ( IC 6-1.1-12-13 ) A $24,960 tax deduction is available for Veterans who:

  • Served honorably in the Armed Forces during period of wartime.

    • WWII: December 7, 1941 - December 31, 1946

    • Korea: June 27, 1950- January 31, 1955

    • Vietnam: August 5, 1964 - May 7, 1975

    • Gulf War: August 2, 1990- to a future date to be set by law or Presidential Proclamation, AND:

  • Are at least 10% service-connected disabled.

  • Served honorably during any period of wartime. AND

  • Is 100% service-connected disabled OR

  • Is at least 62 years of age with at least a 10% service-connected disability.

The Surviving Spouse of the Veteran is eligible for the Veteran's tax deduction. The Spouse must apply in their own name.

If the assessed valuation of the property is less than the deduction, the overage can be applied toward the excise tax on the Veteran's license plates at the rate of $2 per each $100 of deduction.

Deduction for Property Received from a Tax Exempt Organization: ( IC 6-1.1-12-14.5 ) For a deduction of property tax for property conveyed to the Veteran at no cost to the Veteran by an organization that is exempt from income taxation under the federal Internal Revenue Code:

  • Served honorably during any period of wartime for at least 90 days AND

  • Receive a service-connected disability rating of at least 50%

  • Deductions under this section are determined as follows;

    • If the Veteran is Totally disabled (100%) then the deduction is equal to 100% of the assessed value

    • If the Veteran is 90% Service-Connected disabled, then the deduction is equal to 90% of the assessed value

    • If the Veteran is 80% Service-Connected disabled, then the deduction is equal to 80% of the assessed value

    • If the Veteran is 70% Service-Connected disabled, then the deduction is equal to 70% of the assessed value

    • If the Veteran is 60% Service-Connected disabled, then the deduction is equal to 60% of the assessed value

    • If the Veteran is 50% Service-Connected disabled, then the deduction is equal to 50% of the assessed value

Indiana Department of Veterans Affairs, Certificate of Eligibility for Disabled Veteran Property Tax Deduction

Learn more about the Indiana Disabled Veterans Property Tax/Excise Tax Deductions

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What are my Indiana Military and Veterans Education Benefits?

Indiana Wartime Veterans High School Diploma Program: Veterans who served between the following dates may apply to the Indiana Department of Veterans' Affairs for issuance of a high school diploma:

  • April 6, 1917 and November 11, 1918 (World War I)

  • December 7, 1941 and December 31, 1946 (World War II)

  • June 27, 1950 and Jan 31, 1955 (Korea)

  • or Aug 5, 1964 and May 7, 1975 (Vietnam)

Who is eligible for the Indiana Wartime Veterans High School Diploma Program? Veterans must have:

  • attended public or nonpublic high school in Indiana prior to military service,

  • been a student in good standing,

  • not graduated or received a diploma because of leaving high school for military service, AND

  • been honorably discharged from the Armed Forces of the United States.

Veterans, or their Surviving Spouses or eligible Family members, may submit an application to the Indiana Department of Veteran Affairs.
Indiana Department of Veterans Affairs, Application for Delayed High School Diploma
Indiana Department of Veterans Affairs Contact Information

Learn more about the Indiana Wartime Veterans High School Diploma Program

Indiana Financial Aid for Military Servicemembers and Families: The State of Indiana offers a number of educational benefits to resident Service members, Veterans and eligible Family members. Eligibility and application instructions can be found at the links below.

  • Tuition and Fee Exemption for Children of Deceased or Disabled Veterans - Provides regularly assessed fees for Children of deceased or disabled Veterans. This program funding is limited to a maximum of 124 credit hours and may be used at the undergraduate and professional degree level.

  • Tuition and Fee Exemption for Children of Purple Heart Recipients - Provides regularly assessed fees for Children of Purple Heart recipients or wounded Veterans. This program funding is limited to a maximum of 124 credit hours and may be used at the undergraduate and professional degree level.

  • Supplemental Grant for Children and Spouse of Indiana National Guard Service Members - Provides 100% of tuition and regularly assessed fees for students who are the Child or Spouse of a member of the Indiana National Guard who suffered a service-connected death while serving on state active duty. This program funding is limited to a maximum of 124 credit hours.

  • Tuition and Fee Exemption for Indiana Purple Heart Recipients - Provides 100% of tuition and regularly assessed fees for students who are Indiana Veterans and Purple Heart Recipients. This program funding is limited to a maximum of 124 credit hours and may be used at the undergraduate, graduate and professional degree level.

  • Soldiers' and Sailors' Children's Home - Provides 100% of tuition and regularly assessed fees for students who are former students and/or graduates of Morton Memorial High School and former residents of the Indiana Soldiers’ and Sailors’ Children’s home. This program funding is limited to a maximum of 124 credit hours and may be used at the undergraduate, graduate or professional degree level.

Learn more about Indiana Financial Aid for Military Servicemembers and Families

 Indiana National Guard Supplemental Grant (NGSG): Through a partnership with the Indiana National Guard (ING), the Higher Education Commission guarantees 100% of tuition and regularly assessed fees for eligible members of the Indiana Air and Army National Guard. Students can attend either full-time or part-time and receive the NGSG but can only be used in the fall and spring semesters.
Who is eligible for the Indiana National Guard Supplemental Grant (NGSG)?

  • Must be a member of the Indiana National Guard in active drilling status**

  • Must not have been AWOL at any time during the 12 months prior to their enrollment in college for any academic term**

  • Must have all required ING paperwork submitted and approved to their ING education office prior to the start of classes (each semester). Forms and submission processes differ by ING branch. Students should contact their unit commander for details.

**PLEASE NOTE: Students must contact their unit commander for certification and must be recertified each semester to receive the NGSG.

National Guard Scholarship Extension Program: There is a limited scholarship, called the National Guard Scholarship Extension Program, that is available to former Guard members who left the Guard under honorable discharge conditions, used the NGSG in the past, and who served on active duty overseas since Sept. 10, 2001. Students can attend either full time or part time.

Former Indiana National Guard Service members who believes they might qualify for this program may review the application and rules at the ScholarTrack website . First time users will have to create an account. Or they may contact the Indiana National Guard by mail at:

Indiana Army National Guard
2002 South Holt Road
Indianapolis, IN 46241
ATTN: Education Services Office

Learn more about the Indiana National Guard Supplemental Grant (NGSG)

Indiana Veteran and Service Member Apprenticeships and On the Job Training: The Indiana Department of Veterans' Affairs (IDVA) recognizes the importance of providing quality educational and training opportunities to Veterans. Within IDVA, the State Approving Agency (SAA), through a Federal Contract from the U.S. Department of Veterans Affairs, administers and approves both educational and vocational programs for Veterans. The SAA's mission is in keeping with IDVA's philosophy: supporting the education and development of Veterans.

Apprenticeship Training is on-the-job training coupled with theoretical related instruction. One can receive GI Bill benefits while working full time and earning wages. Apprenticeship programs are normally two to 5 years in length. Although program registration with the Department of Labor, Bureau of Apprenticeship and Training, is not mandatory for Veterans, it is recommended in order to receive journeyman papers upon successful completion. The sponsoring organization may be union or non-union. Some typical examples of apprenticeship programs are: Carpenter; Electrician; Plumber; Tool & Die Maker; Machinist; Mechanic; and Iron Worker; etc. There are over 860 apprenticeable occupations that may be approved.

On-the-Job (OJT) Training allows you to learn on the job, earn wages and receive GI Bill benefits. OJT programs can be from a minimum of six months to a maximum of two years. There are certain pay schedules that must be followed. Some examples of OJT programs are: Police Officer; Firefighter; Deputy Sheriff; and Jailer, etc.

The IDVA SAA approves training programs at all public and private universities/colleges, barber schools, beauty schools, medical programs, on-the-job training programs, apprenticeship programs, real estate schools, other non-college degree programs, and flight schools.

As a general rule, Veterans have ten (10) years after separation from active duty to use their GI Bill benefits. National Guard and Reservists may also be eligible. To determine your eligibility, phone the Department of Veteran Affairs Regional Processing Office at 888-442-4551. They will want to know your social security number, when you entered active duty and your discharge date.

Eligible members of the National Guard / Reserve and currently drilling National Guard / Reserve Service members that served on active duty for at least 90 days after September 11, 2001, may be eligible for an educational assistance allowance for participation in approved apprenticeship and/or On-the-Job Training programs. Contact your National Guard / Reserve Unit to determine eligibility for Chapter 1606 and/or 1607 benefits.
Approved Indiana Apprenticeship / On the Job Training Programs

The SAA approves new programs on a weekly basis. If you find a program not listed, please notify the SAA and we will explore the possibility of approval. Direct any question concerning approved institutions to:

Indiana Department of Veterans Affairs
State Approving Agency
302 W. Washington Street, Rm. W-469
Indianapolis, IN 46204-2738
Phone: 317-234-6062 or 800-400-4520 ext. 6062
Email: SAA@DVA.IN.GOV

Learn more about Indiana Veteran and Service Member Apprenticeships and On the Job Training

Indiana Resident Tuition Rates for Indiana National Guard Service Members, Active Duty Service Members and Dependents : ( IC 21-14-9 ) Active Duty Service members and their dependents are eligible to pay resident tuition rates at any state educational institution.
Who is eligible for Indiana Resident Tuition Rates for Indiana National Guard Service Members, Active Duty Service Members and Dependents ? A person who:

  • Is a nonresident of Indiana;

  • Currently serving in the Indiana National Guard: or

  • Serves on active duty;

  • Is stationed in Indiana; and

  • Attends a state educational institution

Learn more about Indiana Resident Tuition Rates for Indiana National Guard Service Members, Active Duty Service Members and Dependents

Indiana Resident Tuition for Veterans: ( IC 21-14-12.2 ) A qualified nonresident Veteran who enrolls in a state educational institution, not later than 12 months after the qualified Veteran's discharge or separation from the Armed Forces of the United States or the Indiana National Guard, will be charged resident rates. In addition the Veteran has the opportunity to be eligible for resident rates after one year from discharge if they register to vote in Indiana; obtain an Indiana driver's license or state ID card; register a motor vehicle; or any other proof of residency as approved by the commission of higher education.
Who is eligible for Indiana Resident Tuition for Veterans?
A qualified Veteran is any individual that served in the Armed Forces of the United States or Indiana National Guard and received an honorable discharge or is currently serving in the Indiana National Guard.

Learn more about Indiana Resident Tuition for Veterans

Indiana Interstate Compact on Educational Opportunity for Military Children: It is the purpose of this compact to remove barriers to educational success imposed on Children of military Families because of frequent moves and deployment of their parents by: