Illinois VA Disability Benefits & Resources for Veterans

The Illinois Department of Veterans’ Affairs (IDVA) runs the state’s service offices, five veterans’ homes and several education programs. Most of the money for disabled veterans comes from local property tax. Since tax year 2023, a veteran rated 70% or higher can have the first $250,000 of a home’s equalized assessed value exempted. Illinois also exempts all military retirement pay from state income tax.

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

Key benefits at a glance

Property tax exemption

The Standard Homestead Exemption for Veterans with Disabilities (35 ILCS 200/15-169) applies to your primary residence. It uses the VA rating in effect on the date you apply:

• 30% to 49%: $2,500 off the equalized assessed value (EAV).
• 50% to 69%: $5,000 off the EAV.
• 70% or higher: the first $250,000 of EAV is exempt. Before tax year 2023 this was a full exemption, but only for homes under $250,000 EAV. The $250,000 cap now means most homes owe nothing.
• Surviving spouses: a spouse who receives Dependency and Indemnity Compensation (DIC) for a service-connected death gets the same $250,000 EAV exemption. An unremarried surviving spouse can also keep the exemption the veteran held, or would have qualified for, and can transfer it to a new primary residence.
• World War II veterans: exempt regardless of disability rating, starting with tax year 2024.

You apply each year during your county’s application period. A veteran rated 100% and permanently and totally disabled does not have to reapply once the exemption is granted. Forms and deadlines vary by county, so contact your chief county assessment officer. The exemption cannot be combined with the specially adapted housing exemption.

The specially adapted housing exemption (35 ILCS 200/15-165) removes up to $100,000 of assessed value from a home bought or built with a VA Specially Adapted Housing grant. It is re-certified every year through IDVA. According to the Illinois Department of Revenue, accessibility improvements such as ramps, grab bars or wider doorways won’t raise your home’s assessment for seven years.

State income tax

Illinois subtracts the federally taxed portion of payments from government retirement and disability plans, military plans included, so military retired pay is not taxed by the state. VA disability compensation is tax-free at the federal level and is not in federal adjusted gross income, so Illinois never taxes it either.

Vehicle registration and license plates

Under 625 ILCS 5/3-609, the Secretary of State issues plates without a registration fee for one passenger car, motorcycle or light truck of 8,000 pounds or less in two cases:

• Disabled Veteran plates with the wheelchair symbol, for veterans with a VA-documented service-connected disability that a physician, physician assistant or APRN certifies as qualifying for disability parking.
• Plates without the wheelchair symbol, for veterans rated 50% or higher whose disability does not qualify for disability parking.

Renewals must include proof of eligibility unless the disability is permanent. IDVA can help you get that documentation.

Hunting and fishing licenses

IDVA issues free fishing and hunting licenses to veterans who receive compensation for a service-connected disability of 10% or more, or who receive a total disability pension. Bring disability documentation no more than one year old to a local IDVA service office. IDNR also exempts these veterans from the Habitat Stamp. Deer, turkey and site-specific permits are separate.

Veterans without a disability rating may still qualify for half-price fishing, hunting or sportsman’s combination licenses if they served abroad or were mobilized. Apply once through IDNR in Springfield with a DD-214 and photo ID.

Education benefits

• Illinois Veteran Grant (IVG): pays tuition and mandatory fees at Illinois public universities and community colleges for the equivalent of four years of full-time enrollment. You generally need at least one year of federal active duty (with some exceptions), an honorable discharge, and Illinois residency before and after service, or 15 consecutive years of Illinois residency since leaving service. The Illinois Student Assistance Commission runs the program.
• Deceased, Disabled, and MIA/POW Veterans’ Dependents Scholarship: covers tuition and mandatory fees at Illinois state-supported colleges and universities, up to 120 points. It is open to the spouse and children of a veteran rated 100% P&T (including through unemployability), a veteran whose death was service-connected, or one who was MIA or a POW. The veteran must have entered service from Illinois or lived in Illinois for 15 consecutive years. A spouse’s or stepchild’s eligibility ends if the spouse remarries or divorces.
• Educational Opportunity Grant: $250 a year toward school costs for children ages 10 to 18 of a veteran who died on active duty, died of a service-connected cause, is rated 100% permanent and total, or has been rated 100% for at least two years. Reapply every year.
• Children of Veterans Tuition Waiver: up to four consecutive years of in-state tuition at the University of Illinois for veterans’ children, run by the university.

State veterans homes

IDVA operates five veterans’ homes for veterans and eligible spouses who need skilled or domiciliary care:

• Illinois Veterans Home - Anna (Anna)
• Illinois Veterans’ Home - Chicago (Chicago)
• Illinois Veterans Home - LaSalle (LaSalle)
• Illinois Veterans Home - Manteno (Manteno)
• Illinois Veterans Home - Quincy (Quincy), the oldest, founded in 1886

Employment preference

The Illinois Personnel Code (20 ILCS 415/8b.7) adds points to the scores of qualifying veterans for state jobs:

• 10 points if you hold proof of a service-connected disability or received the Purple Heart.
• 5 points for wartime service meeting the statute’s length or discharge conditions.
• 3 points for other veterans, Guard and Reserve members with at least six months of service or four years in the Guard or Reserve.

How to apply for Illinois veteran benefits

1. Download your VA benefit summary letter showing your combined rating from VA.gov. Several Illinois programs want proof dated within the last year.
2. For the homestead exemption, file with your chief county assessment officer during the county’s application period, and refile every year unless you are rated 100% P&T.
3. For the free hunting and fishing license, visit an IDVA Veteran Service Officer. For fee-free plates, go to a Secretary of State facility with your VA documentation.
4. Apply for the Illinois Veteran Grant through the Illinois Student Assistance Commission, and for the dependents’ scholarship through IDVA’s online application.
5. Call IDVA at 1-800-437-9824 or use its service office locator to find a Veteran Service Officer. The help is free.

VA offices and medical centers in Illinois

The Chicago VA Regional Benefit Office is at 2122 W. Taylor Street, Chicago, IL 60612.

VA medical centers in Illinois:

• Jesse Brown VA Medical Center — Chicago
• Edward Hines Jr. VA Hospital — Hines
• Captain James A. Lovell Federal Health Care Center — North Chicago
• Danville VA Medical Center (VA Illiana Health Care System) — Danville
• Marion VA Medical Center — Marion

You can find outpatient clinics with the VA facility locator.

Filing a federal VA disability claim from Illinois

The federal claim process works the same in every state. Start with how to file, follow your case with check claim status, and compare the 2026 compensation rates. IDVA Veteran Service Officers will help with a claim at no cost. If you are in crisis, call 988 and press 1 to reach the Veterans Crisis Line.