Illinois Veteran Benefits (2026)
What Illinois offers veterans on top of federal VA benefits — property tax relief, state income-tax treatment of retirement pay, and education programs. Compiled from official state sources.
Property tax exemption
Illinois' Standard Homestead Exemption for Veterans with Disabilities (SHEVD) scales with the VA disability rating: a $2,500 reduction in equalized assessed value (EAV) for ratings of 30-49%, $5,000 for 50-69%, and a full exemption on the first $250,000 of EAV for veterans rated 70% or more. Un-remarried surviving spouses can keep or transfer the exemption.
Military retirement pay & state income tax
Illinois does not tax retirement income, so military retirement pay is fully exempt from state income tax, with no age requirement or income cap.
Education benefits
The Illinois Veteran Grant (IVG) pays tuition and mandatory fees for eligible veterans at all Illinois public universities and community colleges, usable for undergraduate or graduate study for the equivalent of four academic years (120 eligibility units). It is an entitlement program administered by the Illinois Student Assistance Commission.
Also worth knowing
The Illinois Department of Veterans' Affairs also provides long-term health care for eligible veterans through the state's veterans homes and staffs Veteran Service Officers who help with federal and state claims.
Where to apply & verify
- Illinois Department of Veterans' Affairs — the official state agency for these programs
- Verified veteran services in Illinois — directory of local organizations
- Illinois veteran resources & news
- VA disability pay dates 2026 · 2026 VA disability rates
Latest Illinois veteran news
2 veterans battle in court and online over defamation, for-profit claims processing
Military Times - Veterans · Oct 2
A first look at the new Personal Property Activity replacing the old PCS model
We Are The Mighty · Apr 29
Army Reservist receives Purple Heart as she retires, a decade after combat
Task & Purpose · Mar 19
Other states
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About this information: Compiled July 2026 from official state sources and verified references. Benefit rules change through legislation — always confirm details with Illinois Department of Veterans' Affairs or a Veteran Service Officer before making decisions. This is general information, not legal or financial advice.