Idaho Veteran Financial Benefits
Idaho State Income Tax on Military Pay for Resident Service Members:
Idaho residents serving in the military and stationed outside the state for a continuous period of at least 120 days are exempt from paying Idaho state income tax on their military earnings. However, those stationed within Idaho are subject to regular state taxation.
Thrift Savings Plan (TSP) State Taxation:
The TSP does not automatically withhold state or local taxes, but distributions are reported annually via IRS Form 1099-R. All withdrawals from the TSP are subject to Idaho state tax, and early withdrawals may result in additional tax penalties.
Military Retirement Pay Deduction in Idaho:
Retired military personnel may be eligible for the Idaho Retirement Benefits Deduction if they meet a two-part requirement:
Part One – Age/Disability Criteria:
- Must be 65 years or older
- Or, must be 62+ with one of the following:
- A 10% or higher service-connected disability from a U.S. war
- A non-service-connected war-time pension
- Certified as disabled by SSA, RRB, or OMB
- Has a physician-certified permanent disability with no expected recovery
Part Two – Qualified Retirement Benefit:
- U.S. government-paid military retirement income
- Survivor benefits to un-remarried spouses of deceased military retirees
Military Disability Pay and DIC – Idaho Tax Exemption:
- Military Disability Retirement Pay: Excluded from Idaho taxable income if received as compensation for injury or illness incurred during active duty.
- VA Dependency and Indemnity Compensation (DIC): Also excluded from Idaho taxes. This benefit is provided to eligible survivors of service members who died in the line of duty or from service-connected causes.
Survivor Benefit Plan (SBP, RCSBP, RSFPP) Idaho State Deduction:
Un-remarried surviving spouses may qualify for the Idaho Retirement Deduction, provided they meet both:
Part One – Age/Disability Requirements:
- 65 or older
- Or 62+ with a qualifying disability or war-related veteran status
Part Two – Qualified Benefits:
- Military retirement payments from the federal government
- Survivor benefits from the military to eligible spouses
Tax Exemption for Nonresident Military Spouses:
Spouses of nonresident active-duty service members are exempt from Idaho income taxes if:
- They are in Idaho solely to accompany the military spouse
- Both share the same state of legal residence outside of Idaho
Property Tax Relief for Veterans in Idaho:
- Full Property Tax Reduction for 100% Disabled Veterans: Veterans with a 100% VA disability rating may receive up to $1,500 off their property tax bill, regardless of income.
- General Property Tax Reduction Program: Reduces taxes for qualifying individuals based on the previous year’s income, also offering up to $1,500 in tax relief.
- Property Tax Deferral Program: Eligible homeowners can defer property tax payments on their primary residence and one acre, with repayment due if ownership changes or eligibility ends.
Sales Tax in Idaho:
- Statewide base rate: 6.0%
- Local counties may add up to 3.0%
- Average total rate: Approximately 6.02%
- Prescription drugs are exempt from sales tax.
Recreation
Discounted Hunting and Fishing Licenses and Tags for Idaho Veterans (Residents and Nonresidents):
Disabled Veterans, whether residents or nonresidents of Idaho, can take advantage of significantly reduced pricing on hunting and fishing licenses and tags.
For Idaho Residents:
- Disabled Veteran License: $5
- Deer Tag: $10.75
- Elk Tag: $16.50
- Bear Tag: $6.75
- Turkey Tag: $10.75
For Nonresidents:
- Disabled Veteran License (includes a 3-day fishing permit): $31.75
- Deer Tag: $23.75
- Elk Tag: $39.75
- Bear Tag: $23.75
- Turkey Tag: $19.75
Reduced-Cost Licenses for Idaho-Based Service Members on Leave:
Active duty personnel whose official home of record is Idaho and who are temporarily back on leave from out-of-state duty stations are eligible for reduced-cost hunting and fishing licenses. To apply, they must provide their Leave and Earnings Statement and official leave documentation.
Resident Pricing for Nonresident Military and Dependents in Idaho:
Service members from outside Idaho who have been stationed in the state for 30 consecutive days or more, along with their spouses and dependent children (under 18 and living in the same residence), qualify for in-state rates on all hunting and fishing licenses and tags.
Deployment Refund/Rain Check Option for Licenses and Tags:
Military personnel who are deployed for contingency missions can request a refund or a rain check for any Idaho hunting license, tag, or permit that they are unable to use due to their deployment orders.
Special Big Game Tag Program for Disabled Veterans:
The Idaho Disabled Veterans Special Big Game Tag Program permits eligible organizations to nominate a disabled Veteran for a complimentary big game hunt tag. Idaho Fish and Game grants five special tags annually for species such as deer, elk, black bear, pronghorn, moose, or mountain lion. No hunting license is required for participants, and the tag is free. Veterans can only receive this special tag once in their lifetime. Applications are accepted from January 2 to January 31 of each year.
Each year, the Idaho Division of Veterans Services screens and prioritizes applicants before submitting a list to Idaho Fish and Game. Two tags go to Veterans endorsed by the division, while three others are allocated to candidates nominated by other qualifying organizations. There is no limit to how many Veterans an organization may sponsor.
Lifetime Park Access Pass for Disabled Veterans:
Through the Idaho Department of Parks and Recreation (IDPR), eligible disabled Veterans can obtain a lifetime access pass for free entry into Idaho state parks. This includes complimentary day-use and one free campsite per visit (up to 15 consecutive nights per stay).
Education Programs
Idaho National Guard State Education Assistance Program (SEAP):
The SEAP program delivers financial support to Idaho National Guard members by helping with tuition and registration costs at accredited public or private colleges and universities within Idaho. Eligible participants can receive up to $4,000 per fiscal year from the state. Applicants must first exhaust their federal tuition assistance before qualifying for SEAP, and funds are distributed after each academic term ends.
Idaho Operation Education Scholarship:
This scholarship initiative, known as the Operation Education Scholarship, is designed to assist Veterans with permanent service-related disabilities and their spouses in earning a degree from the University of Idaho. The program offers comprehensive support that includes coverage for tuition, books, fees, campus housing, transportation, childcare, medical needs, adaptive tools, mentorship, and tutoring. It also provides career and academic planning, networking, internship guidance, and job placement services. Top priority is given to Idaho residents and Veterans with combat-related injuries.
In-State Tuition Eligibility in Idaho for Veterans, Service Members, and Their Families:
Idaho extends in-state tuition benefits to eligible Veterans, active-duty service members, and their dependents, ensuring more affordable education for military families residing in or moving to the state.
Idaho’s Participation in the Military Interstate Children’s Compact (MIC3):
Idaho honors the MIC3 compact, which aims to ease the educational transitions faced by children of military families. It supports timely enrollment and appropriate placement of students, minimizing disruptions caused by frequent relocations. This compact helps ensure access to academic programs, extracurricular activities, and graduation eligibility while encouraging cooperation between schools, states, and military households. Additionally, MIC3 promotes consistent data sharing and alignment with other military family initiatives, ensuring that children of service members receive equitable educational opportunities.
Housing: Below are the locations of Veterans Homes available in the state.
Idaho State Veterans Home at Post Falls
Idaho State Veterans Home at Boise
Idaho State Veterans Home at Lewiston
Idaho State Veterans Home at Pocatello
Admission Criteria:
To qualify for entry, applicants must meet the following requirements:
- Be a Veteran who completed a minimum of 90 days of active duty in the U.S. Armed Forces with an honorable discharge (priority given to those who served during wartime)
- Be the spouse or surviving spouse of an eligible Veteran
- Have a demonstrated need for skilled nursing services
- Be a resident of Idaho at the time of application
- Must have applied for or currently be receiving VA pension and Aid and Attendance benefits
- Be eligible for Medicaid or able to cover the full monthly cost of care
- Veterans are accepted regardless of financial need
Employment & Job Training Support for Veterans in Idaho
Veterans’ Preference in Idaho Public Employment
Idaho law mandates preference for Veterans, their Spouses, and Surviving Spouses in the hiring process for initial classified positions within the state’s public sector.
When a position uses a point-based evaluation system, eligible candidates receive additional points on their examination scores. If a position doesn’t use scoring, eligible Veterans receive preference over similarly qualified applicants.
Preference Categories:
- 5-Point Preference:
- Veterans with at least 180 days of active-duty service and an honorable discharge
- Unmarried Surviving Spouse of an eligible Veteran
- 10-Point Preference:
- Veterans with a 10%+ service-connected disability
- Purple Heart recipients
- Unmarried Surviving Spouse of an eligible Veteran
- Spouses of Veterans unable to work due to a service-connected disability
- 10-Point & Interview Guarantee:
- Veterans with a 30%+ disability rating who rank in the top 25 of qualified applicants are guaranteed an interview
Additional Application Opportunities:
- Recently Discharged Veterans (within 120 days or hospitalized up to 1 year) may apply for closed positions if a vacancy remains
- Disabled Veterans can apply anytime for positions with an open candidate register
Licensing Benefits for Veterans, Service Members & Spouses in Idaho
- Active-duty and reserve personnel with Idaho professional licenses are exempt from renewal fees and are protected from license suspension or expiration during service.
- Licenses remain valid for 6 months post-discharge.
- Licensing boards can count military training/experience toward license requirements and may expedite processing for eligible applicants.
Military Leave for State Employees
Idaho state employees who serve in the National Guard or Reserves are entitled to 120 hours of paid military leave annually without any impact on their pay or employment status.
Veteran Employment Services – Idaho Department of Labor
The Idaho Department of Labor provides career guidance, job placement assistance, and training programs to Veterans, transitioning Service members, and eligible Spouses. They maintain updated job listings and resources across public and private sectors.
Federal Hiring Preferences for Veterans
Veterans applying for federal jobs may be eligible for extra points on hiring assessments based on service history, disabilities, or receipt of certain medals.
Summary of Federal Hiring Preferences:
- 5-Point Preference: For Veterans who served during qualifying periods or in a recognized campaign
- 10-Point (CP): For those with a service-connected disability (10–29%)
- 10-Point (CPS): For those with a 30%+ service-connected disability
- 10-Point (XP): For those with a disability pension, Purple Heart, or receiving VA compensation
- 10-Point Derived Preference (XP): For eligible Spouses, Surviving Spouses, or mothers of Veterans under qualifying conditions
USERRA – Job Protection for Service Members
The Uniformed Services Employment and Reemployment Rights Act (USERRA) ensures that Service members are not disadvantaged in their civilian careers due to military service.
USERRA Highlights:
- Reemployment Rights: Allows up to 5 years of military-related leave with job reinstatement
- Disability Protection: Requires employers to accommodate service-connected disabilities
- Seniority & Benefits: Returning Service members resume their jobs with all accrued seniority, status, and pay
- Health Coverage: Option to maintain employer-sponsored health plans for up to 24 months during service (some cost may apply)
- Pension Security: Pension benefits continue uninterrupted
Who’s Eligible?
- Veterans
- Members of the Reserve and National Guard
- Federal and Postal employees (USERRA applies to both public and private sectors)
The Department of Labor’s Veterans’ Employment and Training Service (VETS) assists with USERRA claims and related employment matters.
Burials and Memorials
The National Cemetery Administration (NCA) honors the commitment of eligible Veterans and their families by offering a dignified final resting place and a permanent tribute recognizing their service to the country.
Veterans are entitled to a range of burial benefits at no cost to their families. These include a gravesite in a national cemetery with available space, opening and closing of the grave, continuous maintenance, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate. In some cases, Veterans may also qualify for a burial allowance. Cremated remains are treated with the same dignity as casketed burials and can be placed in national cemeteries.
These burial privileges also extend to eligible spouses and dependents, allowing them to be laid to rest with the Veteran. Their names and life dates are engraved on the Veteran’s headstone without charge. Spouses and dependents remain eligible for burial benefits even if they pass away before the Veteran, and they do not need to be interred in the same cemetery as the Veteran to receive this honor.
National Cemeteries include:
Blackfoot: Idaho State Veterans Cemetery
Boise: https://veterans.idaho.gov/cemeteries/boise-cemetery/
Idaho VA Benefit Resources
Idaho offers Veterans access to both a Regional VA Benefits Office and a VA Medical Center within the state.
Idaho VA Regional Benefits Office
- Boise: Regional Office
Idaho VA Medical Centers
- Boise: Boise VA Medical Center
Key Information Regarding Idaho Veteran Benefits:
Veterans submitting a VA benefits application for the first time must include a copy of their DD Form 214 (discharge documentation). This document verifies your discharge classification and includes essential personal details such as full name, Social Security number, military branch, and service dates. Most VA benefits are accessible to Veterans with an honorable or general discharge.
It’s essential to safeguard your military paperwork and medical files in a secure, accessible location for both you and your loved ones—ideally somewhere protected from loss or damage, such as a locked safe.
Eligibility for most VA benefits hinges on separation from active military duty under conditions other than dishonorable.
“Active duty” refers to full-time service in the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard, or as a commissioned officer with the Public Health Service, the Environmental Services Administration, or NOAA (National Oceanic and Atmospheric Administration).
Veterans who were dishonorably discharged—especially those discharged for misconduct by a general court-martial—may be ineligible for VA benefits. However, some individuals on parole or incarcerated may still qualify for certain entitlements. VA regional offices can provide guidance for those with complex discharge histories or multiple separations under varying conditions.
Information current as of October 2023.
Idaho Veteran Benefits
Disabled Veterans residing in Idaho with a VA disability rating of 90% or lower may qualify for added benefits. Reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. We’ll evaluate your claim to see if you’re eligible for further entitlements.
