| Military retirement pay | Exempt. Illinois does not tax military retired pay. Qualifying military pay can also be subtracted from Illinois income, and the Department of Revenue explains the details in its retirement income publication. |
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| Property tax | The Disabled Veterans' Standard Homestead Exemption reduces the equalized assessed value (EAV) of your home. A rating of 30% to under 50% gets $2,500 off, 50% to under 70% gets $5,000 off, and 70% or more gets a total exemption when the home's EAV is $250,000 or less (earlier research read it as the first $250,000 exempt for higher-value homes, so confirm with your assessor). Specially adapted housing can cut assessed value by up to $100,000, and returning veterans get $5,000 off for two years. Apply with your county assessor; WWII veterans are exempt regardless of rating for tax years 2024 and later. |
| Disabled Veterans Standard Homestead Exemption Taxes | $2,500 off for 30% to under 50%, $5,000 off for 50% to under 70%, and a total exemption for 70%+ when the home's EAV is $250,000 or less. |
| Specially Adapted Housing exemption Taxes | Up to $100,000 off assessed value for homes bought or built with federal adapted-housing funds. |
| Returning Veterans' Homestead Exemption Taxes | $5,000 off the equalized assessed value of your home for two years after returning from active duty. |
| Illinois Veterans Grant Education | Covers tuition and fees at Illinois public universities and community colleges for eligible veterans. |
| MIA-POW Scholarship Education | Funds public college for dependents of veterans who were MIA or POW, died on active duty, or are 100% disabled. |
| Illinois Veterans' Homes Health & Homes | Five state homes in Quincy, Anna, Chicago, LaSalle and Manteno provide skilled and domiciliary care. |
| Free hunting and fishing licenses Recreation | Veterans rated 10%+ service-connected get free licenses; documents must be under a year old. |
| Free disabled veteran plates Vehicles & ID | The first set of Disabled Veteran plates is free with proof of service-connected disability. |
| State hiring preference and tax credit Jobs | Honorably discharged veterans get preference on state jobs, and employers hiring a veteran may earn a $1,200 tax credit. |
Last checked 2026-11. State rules change often; confirm with Illinois Department of Veterans' Affairs before you rely on any benefit.