Find the benefits your state offers Veterans

Alabama state benefits

What you may qualify for

7 state benefits for Alabama Veterans. Choose your rating to see which may apply to you.

• Property tax

  100% or P&T

  Property tax exemption for permanent and total disability

  Alabama homeowners who are permanently and totally disabled are exempt from all property taxes on their home and up to 160 acres, with no age or income limit. Veterans whom the VA has rated permanently and totally disabled can qualify by applying at their county tax assessor's office. Starting Oct. 1, 2026, these Veterans no longer have to verify their eligibility each year after they first qualify.

  Who qualifies: Permanently and totally disabled

  Source ↗: Alabama Department of Revenue: Homestead Exemptions (opens in a new tab)

• Income tax

  No minimum rating

  Military retired pay is tax-free

  Alabama has a state income tax with rates from 2% to 5%. Military retired pay, and survivor benefits paid from it, are fully exempt from Alabama income tax. VA disability payments are also exempt.

  Who qualifies: Military retirees and survivors

  Source ↗: Alabama Department of Revenue: Income Exempt from Alabama Income Taxation (opens in a new tab)

• Education

  30%+

  Alabama G.I. Dependent Scholarship

  Children, stepchildren, spouses and unremarried surviving spouses of Veterans rated 40% or more for service-connected disabilities can get help paying for undergraduate study at qualifying Alabama schools. After other grants and scholarships are applied, the program pays tuition up to $400 per credit hour and books and fees up to $1,000 per semester. Children generally must start before age 26 and can get up to 5 school years; spouses get 5 years if the Veteran is rated 100% P&T, or 3 years if rated 40% to 90%. The Veteran must also meet Alabama residency and service rules, and students must file a FAFSA each year.

  Who qualifies: Dependents of Veterans rated 40%+

  Source ↗: ADVA: Alabama G.I. Dependent Scholarship Program (opens in a new tab)

• Vehicles & DMV

  10%+

  Disabled Veteran license plates and fee exemption

  Alabama resident Veterans with a service-connected rating of 10% or more do not pay state registration and plate issuance fees on their first vehicle. Veterans rated 51% or more can get more Disabled Veteran plates for $5 a year each. These plates do not exempt the vehicle from ad valorem (property) tax, except that a vehicle paid for with a VA grant is exempt from registration fees and ad valorem tax.

  Who qualifies: 10%+ service-connected rating

  Source ↗: Alabama Department of Revenue: Disabled Veteran License Plate (opens in a new tab)

• Hunting & fishing

  10%+

  Disabled Veteran hunting and fishing licenses

  Alabama resident Veterans with a VA disability rating of 20% or more can buy a discounted annual fishing license or lifetime freshwater and saltwater fishing licenses. Veterans rated 50% or more can buy an annual hunting license for half the usual price, and Veterans rated 100% service-connected can buy one for a $2 license fee plus an issuance fee. Veterans rated 40% or more can buy a lifetime hunting license, with prices based on age. You must show your VA disability letter when you buy.

  Who qualifies: 20%+ (fishing), 50%+ (hunting)

  Source ↗: ADVA: Alabama Laws Affecting Veterans (Sept. 2026) (opens in a new tab)

• Employment

  No minimum rating

  Veterans' preference in state jobs

  Honorably discharged Veterans get 5 points added to their scores on State of Alabama merit system job exams. Veterans with a service-connected disability get 10 points and must send a VA disability letter; if the disability is not permanent, the letter must be dated within the past year. Spouses of Veterans and surviving spouses who have not remarried may also get points.

  Who qualifies: Honorably discharged Veterans

  Source ↗: State of Alabama Personnel Department: Military/Veterans' Preference (opens in a new tab)

• Veterans homes

  No minimum rating

  State veterans homes

  The Alabama Department of Veterans Affairs runs 5 state veterans homes, in Alexander City, Bay Minette, Enterprise, Huntsville and Pell City. They provide nursing care and some assisted living. Applicants generally need an honorable discharge, Alabama residency for the past 12 months, and must meet VA rules for the level of care. Residents of the Enterprise home moved back on Sept. 28, 2026, after a 2025 fire.

  Who qualifies: Eligible Alabama Veterans

  Source ↗: ADVA: State Veterans Homes (opens in a new tab)

Amounts and rules change, often every year. Confirm details with the Alabama Department of Veterans Affairs or your county tax office before you apply. This guide is general information, not legal or tax advice. Being True to Vets is not affiliated with the VA or any state agency.