Alabama disabled veteran property tax exemption

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Summary Alabama Military and Veterans Benefits: Alabama offers special benefits for service members, Veterans and their families including state tax benefits, property tax exemptions, Alabama National Guard Education Assistance Program, education and tuition assistance, vehicle tags, state employment hiring preference as well as hunting and fishing license privileges. Eligibility for some benefits may depend on residency, military component, and Veteran disability status.

Alabama Department of Veterans Affairs (ADVA), Veterans Service Offices: The ADVA has Veterans Service Offices located throughout Alabama that can assist Veterans, and their families find and apply for benefits under federal, state, and local laws. All their services are provided free of charge.

Some of the services provided are:

Alabama Military and Veterans State Benefit Highlights and Eligibility

Welcome to Alabama Sign

What are my Alabama Military and Veterans State Tax Benefits?

Alabama Military Retired Pay Income Tax Exemption: Military retired pay is exempt from Alabama income tax. Thrift Savings Plan (TSP) does not withhold taxes for state or local income tax, but it is reported annually on IRS Form 1099-R. All TSP distributions are subject to state taxes and early distributions may incur higher taxes.

tank facility

Alabama Income Tax Exemption for Military Combat Pay: Pay received in a designated combat zone is exempt from Alabama income tax.
Who is eligible for the Alabama Income Tax Exemption for Military Combat Pay? service members receiving pay for service in a combat zone that has been designated by the President of the U.S. are eligible for the exemption.

Alabama Income Taxes on Military Pay: Resident service members must pay state taxes on military pay except for allowances paid for quarters, subsistence, uniforms, and travel.

Alabama State Taxes on U.S. Department of Veterans Affairs Military Disability Retirement Pay: Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. Some of the payments which are considered disability benefits include:

Alabama State Taxes on U.S. Department of Veterans Affairs Disability Dependency andIndemnity Compensation (DIC): DIC is a tax-free monetary benefit paid to eligible survivors of service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-connected injury or disease.
U.S. Department of Veterans Affairs DIC Fact Sheet

Alabama Taxes on Military Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP), and Retired Serviceman’s Family Protection Plan (RSFPP) Annuities: SBP, RCSBP and RSFPP annuities are exempt from Alabama income tax.

Alabama Homestead Tax Exemption for Residents over age 65, Blind or Totally Disabled: Alabama offers a homestead exemption for all state, county and city property taxes for residents who meet the following requirements:

A homestead is defined as the single-family owner-occupied home and the land it is on, not exceeding 160 acres. The property owner must own and occupy it as their primary residence on the first day of the tax year they are applying for an exemption. For more information, please contact the Alabama Department of Revenue, County Offices where the property is located for more information and to apply.
Alabama Department of Revenue, County Offices
Alabama Department of Revenue, Memorandum Clarifying Exemption for Permanently and Totally Disabled

Homes of Veterans or Unremarried Surviving Spouses Acquired under a Special Adapted Housing Grant are Exempt fromAd Valorem Taxes: The home of a Veteran, or their surviving spouse, that is acquired through a VA Specially Adapted Housing Grant, regardless of its value, is exempt from all Alabama property taxes.

Vehicles Paid for by a U.S. Department of Veterans Affairs Grant is Exempt from all License Fees and Property Taxes: Vehicles owned by disabled Veterans that are all or partly paid for by the VA are exempt from all license fees and property taxes. The vehicle must only be used for the private use of Veteran.
Who is eligible for License Fees and Property Tax Exemptions for Vehicles Paid for by VA Grant? Any vehicle, owned by a Veteran who was disabled in any U.S. war, conflict or hostilities against a foreign country, that is all or partly paid with funds from the VA to accommodate the Veteran’s disabilities is exempt. For more information, please contact the Alabama Department of Revenue, County Offices where the vehicle is located for more information and to apply.
Alabama Department of Revenue, County Offices

Alabama Social Security Benefits Tax Exemption: Alabama does not tax Social Security benefits.

What are my Alabama Military and Veterans Education Benefits?

Alabama National Guard Education Assistance Program(ANGEAP): ANGEAP provides financial educational assistance to Alabama National Guard service members who are enrolled in an Alabama State Supported School.

soldiers studying

The current award amounts are $5,852 per semester, or $3,901.33 per quarter. ANGEAP covers tuition and fees that are not covered by any VA education benefits.
Who is eligible for the ANGEAP?To be eligible for an ANGEAP award students must meet the following requirements:

Alabama G.I. Dependent Scholarship Program: Alabama offers varying duration scholarships for eligible dependents of resident disabled Veterans. These scholarships are available for use at any Alabama State Supported School for undergraduate courses at the in-state tuition rate. The scholarship will pay $250 per semester hour and up to $1,000 for textbooks and applicable fees for each semester. Schools may waive any overages of these charges at their discretion.

Children and stepchildren of qualified Veterans receive five standard academic years (10 semesters) of financial assistance.

spouses or unremarried surviving spouses of a Veteran who is 100% permanently and totally disabled are eligible for five standard academic years (10 semesters).

Spouses or unremarried surviving spouses of a Veteran rated 40-90% disabled are eligible for three standard academic years (six semesters).

All scholarships and grants must be applied to education expenses first and the Alabama G.I. Dependents Scholarship Program will be applied for any remaining charges.
Who is eligible for the Alabama G.I. Dependent Scholarship Program? A dependent is defined as a child, stepchild, spouse or unremarried surviving spouse of an eligible Veteran. The Veteran must meet the qualifications listed below to establish eligibility of their dependents.

Military Service: The Veteran must have been honorably discharged after at least 90 days of continuous active duty service in the U.S. Armed Forces or was honorably discharged after serving less than 90 days due to a service-connected disability.

Disability Requirements: Veterans must meet one of the following requirements:

Veteran Residency Requirements: Veterans must meet one of the following residency requirements: