State benefit details verified against official state sources on September 27, 2026.
Overview
The North Carolina Department of Military and Veterans Affairs (NCDMVA) certifies most state benefits through accredited county and state veterans service officers. NCDMVA’s signature is required on the property tax form, the license plate application and the hunting license application. The largest benefits are a $45,000 homestead exclusion for veterans rated 100% permanent and total, a military retirement deduction for 20-year and medical retirees, and free Disabled Veteran plates.
Key benefits at a glance
| Benefit | Who qualifies | Amount / limit | Official source |
|---|---|---|---|
| Disabled veteran homestead exclusion | 100% P&T SC or SAH recipients; never-remarried surviving spouses | First $45,000 of assessed value | NCDMVA |
| Military retirement deduction | 20+ years of service or medically retired (10 U.S.C. ch. 61); SBP beneficiaries | Full deduction | G.S. 105-153.5 |
| Disabled Veteran plate | Qualifying disabled veterans | Free; plate fee waived | NCDMVA |
| Partially Disabled Veteran plate | Qualifying partially disabled veterans | Regular plate cost | NCDMVA |
| Disabled Veteran lifetime license | Residents rated 50% or more | Lifetime hunting and fishing | NCDMVA |
| Children of Wartime Veterans Scholarship | Children under 25 of qualifying deceased, disabled, combat or POW/MIA wartime veterans | Eight semesters | NCDMVA |
| State hiring preference | Eligible veterans | Credit for military training and experience | G.S. 126-82 |
| State veterans homes | Eligible veterans | Five locations | NCDMVA |
Property tax relief
Under N.C.G.S. 105-277.1C, the disabled veteran homestead exclusion removes the first $45,000 of assessed value from taxation (NCDMVA). The owner must have an honorable or under-honorable-conditions discharge and be:
- a veteran with a 100% permanent and total service-connected disability, or who receives VA specially adapted housing benefits; or
- the never-remarried surviving spouse of such a veteran, or of a veteran who died of a service-connected condition.
Co-owners who each qualify still share a maximum exclusion of $45,000. NCDMVA’s criteria don’t include an income limit for this exclusion.
How to apply:
- Complete Sections 1 and 2 of Form NCDVA-9.
- Have it certified by a county veterans service office or the State Veterans Service Center.
- File the certified NCDVA-9 with Form AV-9 at your county tax office by June 1 of the tax year.
State income tax
Under G.S. 105-153.5, North Carolina deducts uniformed services retirement pay for a retiree who served at least 20 years or was medically retired under 10 U.S.C. Chapter 61 (severance pay doesn’t qualify). Survivor Benefit Plan payments to that retiree’s beneficiaries are also deductible. Military retirees who meet neither test pay tax on their retirement. VA disability compensation is excluded from federal gross income (IRS Publication 525) and is not taxed in North Carolina.
Vehicle registration and plates
According to NCDMVA, these plates are free and the license plate fee is waived: Disabled Veteran, Ex-POW, Medal of Honor, Distinguished Service Cross, Silver Star, Legion of Valor, Silver Star Disabled Veteran and Bronze Star with Valor. The Partially Disabled Veteran plate and many service plates (Purple Heart, Iraq, Afghanistan and others) cost the same as a regular plate. Personalized messages carry a yearly fee.
Apply on Form MVR-33A. Section 3 must be certified by a DMVA-accredited county or state service officer using your DD-214 and, if applicable, your VA rating letter.
Hunting and fishing licenses
The Wildlife Resources Commission sells lifetime licenses, which stay valid even if you move away. Two are aimed at disabled veterans (NCDMVA):
- Disabled Veteran lifetime license for residents who are 50% or more disabled veterans
- Totally Disabled lifetime license for residents who are totally and permanently disabled
Check with NCWRC for current prices.
Education benefits
The North Carolina Scholarship for Children of Wartime Veterans covers eight academic semesters, to be used within eight years, at North Carolina schools (NCDMVA). It is for children under 25 of certain deceased, disabled, combat or POW/MIA veterans whose qualifying event happened during a period of war. Either the veteran must have been a North Carolina resident on entering service, or the child must have been born in North Carolina and lived there since. Benefits depend on the eligibility class.
Deadline: February 14 when the veteran’s disability is under 100% or the claim is based on combat-zone service. Applications are online only, and the Fall 2026 portal is now closed.
State veterans homes
NCDMVA lists state veterans home locations in Black Mountain, Fayetteville, Kernersville, Kinston and Salisbury (NCDMVA). Each home has a veterans service officer on staff and accepts Medicare, Medicaid and private insurance.
Employment preference
North Carolina’s preference works through credit for military service instead of added points. Under G.S. 126-82, eligible veterans get credit for military training and experience related to the job when their qualifications are measured against the minimum requirements, plus more credit for additional military service. The preference covers initial hiring, promotions, reassignments and transfers, and military service can count as seniority in a reduction in force.
How to apply in North Carolina
- Find your county veterans service office through NCDMVA (toll-free 844-624-8387). Their certification is required for the property tax form and veteran plates.
- Property tax: NCDVA-9 (certified) plus AV-9 to the county tax office by June 1.
- Plates: MVR-33A with Section 3 certified, then submit to NCDMV.
- Scholarship: apply through the NCDMVA online portal before the deadline for your class.
VA regional office and medical centers
The Winston-Salem VA Regional Benefit Office is at 251 N. Main Street, Winston-Salem, NC 27155. North Carolina’s VA medical centers are the Charles George VA Medical Center (Asheville), Durham VA Medical Center, Fayetteville VA Medical Center and the W.G. (Bill) Hefner VA Medical Center (Salisbury), which together run more than 30 clinics across the state, including Kernersville and Goldsboro.
Filing a federal VA claim
Disability claims follow one federal process: see how to file a VA claim, check your claim status, and current compensation rates. Because North Carolina’s homestead exclusion requires a permanent and total 100% rating, make sure your VA decision states permanence before you file the NCDVA-9.
If you are in crisis, call 988 and press 1 for the Veterans Crisis Line.
Frequently Asked Questions
How much is North Carolina's disabled veteran property tax exclusion?
The first $45,000 of assessed value of the home is excluded for an honorably discharged veteran with a 100% permanent and total service-connected disability, or one who receives VA specially adapted housing benefits. Never-remarried surviving spouses qualify too, including spouses of veterans who died of a service-connected condition. DMVA's guidance lists no income limit for this exclusion.
When is the deadline to apply for the North Carolina disabled veteran exclusion?
June 1 of the tax year. Fill out Form NCDVA-9, have it certified by a county or state veterans service office, then file it with Form AV-9 at your county tax office. NCDMVA recommends starting the certification well before June 1.
Does North Carolina tax military retirement?
Not if you served at least 20 years in the uniformed services or were medically retired under 10 U.S.C. Chapter 61. Under G.S. 105-153.5, that retirement pay, and Survivor Benefit Plan payments to the retiree's beneficiaries, is deducted from North Carolina taxable income. Retirees who don't meet either test are taxed on their military retirement.
Are Disabled Veteran license plates free in North Carolina?
Yes. Disabled Veteran plates, along with Ex-POW, Medal of Honor, Distinguished Service Cross, Silver Star, Legion of Valor and Bronze Star with Valor plates, are free and the license plate fee is waived. The Partially Disabled Veteran plate costs the same as a regular plate. A DMVA-accredited service officer must certify Section 3 of Form MVR-33A.
Where are North Carolina's state veterans homes?
NCDMVA lists state veterans homes in Black Mountain, Fayetteville, Kernersville, Kinston and Salisbury.
Sources
Every rating percentage, diagnostic code, and dollar figure on this page is sourced from the references below. See our editorial policy for how we choose and verify sources.
- Veterans Property Tax Relief — North Carolina Department of Military and Veterans Affairs
- G.S. 105-153.5, Modifications to adjusted gross income — North Carolina General Assembly
- Military and Veteran License Plates — North Carolina Department of Military and Veterans Affairs
- Hunting and Fishing License Application — North Carolina Department of Military and Veterans Affairs
- Scholarships (Children of Wartime Veterans) — North Carolina Department of Military and Veterans Affairs
- North Carolina State Veterans Homes — North Carolina Department of Military and Veterans Affairs
- G.S. 126-82, State Human Resources Commission to provide for preference — North Carolina General Assembly
- Publication 525, Taxable and Nontaxable Income — Internal Revenue Service
- Winston-Salem VA Regional Benefit Office — U.S. Department of Veterans Affairs
- VA Durham Health Care Locations — U.S. Department of Veterans Affairs
- VA Fayetteville Coastal Health Care Locations — U.S. Department of Veterans Affairs
- VA Salisbury Health Care Locations — U.S. Department of Veterans Affairs
- VA Asheville Health Care Locations — U.S. Department of Veterans Affairs
Related Guides
This content is for informational purposes only and does not constitute legal or medical advice. For personalized guidance, consult a VA-accredited VSO, attorney, or claims agent.
