Alabama VA Disability Benefits & Resources for Veterans

The Alabama Department of Veterans Affairs (ADVA) staffs veterans service offices in 62 counties, runs five state veterans homes and administers the Alabama G.I. Dependent Scholarship, which pays college costs for the families of veterans rated as low as 40%. Alabama also exempts military retirement pay from income tax, and a 10% rating is enough to drop state tag fees.

State benefit details verified against official state sources on September 27, 2026.

Key benefits at a glance

Property tax exemption

Alabama has no separate property tax exemption tied to a VA rating percentage. Disabled veterans use the homestead exemptions that the Alabama Department of Revenue (ALDOR) administers under Ala. Code §§ 40-9-19 through 40-9-21:

• H-3 (Disabled): a homeowner who is permanently and totally disabled is exempt from all ad valorem taxes, state and county, on a single-family home they own and occupy and up to 160 acres. There is no income limit.
• H-2: a homeowner retired because of permanent and total disability is exempt from the state portion and from $5,000 of assessed value on the county portion, including school taxes.
• Specially adapted housing: a home acquired with a VA specially adapted housing grant is exempt regardless of its value while the veteran, or an unremarried surviving spouse, owns and lives in it (§ 40-9-20).

You must own and live in the home on the first day of the tax year you’re applying for. Apply at your county’s property tax office. ALDOR provides a physician’s affidavit for proving permanent and total disability; ask the county whether your VA benefit summary letter will do instead. Property taxes are due October 1 and delinquent after December 31.

Two 2026 laws help veterans:

• Act 2026-598 (effective October 1, 2026): veterans who claim the exemption because of a service-connected disability no longer have to recertify every year.
• Act 2026-268 (effective October 1, 2026): an eligible veteran can get a certificate from the county tax official telling a lender to leave the exempt property taxes out of the debt-to-income calculation on a home loan.

State income tax

• Military retirement: retirement pay from the U.S. military, and survivor benefits derived from it, are exempt from state, county and municipal income tax (Ala. Code § 40-18-20).
• VA disability compensation: ALDOR lists disability payments and other benefits paid by the VA as exempt from Alabama income tax.
• National Guard pay: beginning January 1, 2027, Alabama National Guard members won’t owe state income tax on the first $5,000 of inactive duty training pay (HB341, signed April 2026).

Vehicle registration and license plates

• 10% or higher: resident veterans rated 10% or more are exempt from the state privilege or license tax and from registration and issuance fees. County and city taxes and fees may still be charged. Veterans rated below 50% get one exemption and one plate.
• Higher ratings, special controls or a VA-funded vehicle: a veteran whose physical disability exceeds 50%, who needs special driving controls, or whose vehicle VA helped pay for can get Disabled Veterans plates for any number of private vehicles. The registration fee is $5 in place of the regular license fee (unless the 10% exemption applies), with no state issuance fee. If you qualify only because VA paid for the vehicle, you get one plate that is also exempt from ad valorem tax.
• Proof: bring your DD-214 or other documentation to the county licensing official. If that isn’t enough, any ADVA office can issue a certificate of eligibility (ADVA Form 14). A family member can’t apply for the plate for you.
• Driver’s license: honorably discharged veterans can add the word VETERAN to an Alabama driver’s license or non-driver ID by showing a DD-214.

Hunting and fishing licenses

The Alabama Department of Conservation and Natural Resources sells these at probate offices, its Montgomery office and district offices. Bring VA certification of your rating.

• 100% Disabled Military Veterans Appreciation Hunting License: $3.60.
• 50% Disabled Military Veterans Appreciation Hunting License: $17.70.
• Holders of either can buy the annual resident nighttime feral swine and coyote license for the issuance fee only.
• Disabled Military Veteran Appreciation Fishing License: a discounted annual freshwater license for residents rated 20% or more.
• Lifetime licenses: residents rated 20% or more can buy lifetime freshwater and saltwater fishing licenses, and those rated 40% or more a lifetime hunting license. Prices depend on your age and, for hunting, on whether you are rated 100% P&T.

Education benefits

ADVA runs the Alabama G.I. Dependent Scholarship (Ala. Code §§ 31-6-1 to 31-6-17). The veteran must have been honorably discharged after at least 90 days of continuous active service (or sooner because of a service-connected disability) and must be one of the following:

• rated 40% or more service-connected
• a current or former POW, or declared MIA
• deceased from a service-connected disability, or killed in the line of duty on active service

What dependents receive:

• Children and stepchildren: up to five academic years (10 semesters) at Alabama public colleges, certain private colleges and state technical colleges. They must generally start before their 26th birthday; some can qualify up to age 30.
• Spouses or unremarried surviving spouses of 100% P&T veterans: 10 semesters.
• Spouses or unremarried surviving spouses of veterans rated 40% to 90%: 6 semesters.
• Limits: tuition is capped at $400 per semester hour, and required textbooks and fees at a combined $1,000 per semester.

The veteran must meet Alabama residency rules. A veteran rated 100% P&T who didn’t enter service from Alabama can qualify after five years of residency. Students must live in Alabama, file a FAFSA every year and keep satisfactory academic progress. Apply through the scholarship portal on ADVA’s website.

Alabama public colleges may also waive undergraduate tuition and fees for Purple Heart recipients (Ala. Code § 16-1-43). Ask the school.

State veterans homes

ADVA operates five homes offering nursing care and some assisted living:

• Bill Nichols State Veterans Home: Alexander City
• Floyd E. “Tut” Fann State Veterans Home: Huntsville
• William F. Green State Veterans Home: Bay Minette
• Col. Robert L. Howard State Veterans Home: Pell City
• Command Sgt. Maj. Bennie G. Adkins State Veterans Home: Enterprise (opened October 2024)

Get an application from your county veterans service office or directly from the home.

Employment preference

Under Ala. Code § 36-26-15(b), honorably discharged veterans get 5 points added to passing scores on state classified service exams, and veterans with a service-connected disability get 10 points. Surviving spouses of service members who die in the line of duty get the 10-point preference. Act 2026-574 (HB307), which takes effect January 1, 2027, expands the preference for military spouses and lets private and local employers adopt veterans’ preference policies.

How to apply for Alabama veteran benefits

1. Download your VA benefit summary letter from VA.gov. It shows your combined rating and whether you’re rated permanent and total.
2. For the homestead exemption, take the letter to your county’s property tax office. You must own and live in the home on the first day of the tax year.
3. For Disabled Veterans plates, bring the letter and your DD-214 to your county tag office. If the office needs more, get ADVA Form 14 from a county veterans service office.
4. For hunting and fishing licenses, bring the letter to a probate office or an ADCNR district office.
5. Dependents should apply for the G.I. Dependent Scholarship through ADVA’s online portal and file a FAFSA.
6. For free help with any of these, contact ADVA at 100 North Union Street, Suite 826, Montgomery, AL 36104, (334) 242-5077, or find your county veterans service office.

VA offices and medical centers in Alabama

Montgomery VA Regional Benefit Office: 345 Perry Hill Rd, Montgomery, AL 36109.

VA medical centers in Alabama:

• Birmingham VA Medical Center: Birmingham
• Central Alabama VA Medical Center-Montgomery: Montgomery
• Central Alabama VA Medical Center-Tuskegee: Tuskegee
• Tuscaloosa VA Medical Center: Tuscaloosa

Find outpatient clinics near you with the VA facility locator.

Filing a federal VA disability claim from Alabama

The VA disability claim process is the same in every state. See how to file, check your claim status and the 2026 compensation rates. ADVA’s accredited county veterans service officers will prepare and submit a claim or appeal for free. If you’re in crisis, call the Veterans Crisis Line at 988 and press 1.