Illinois Veterans Financial Assistance and Tax Benefits
Illinois Income Tax Exemption on Military Compensation:
Military earnings that are included in a Service member’s federal adjusted gross income (AGI) can be deducted from their Illinois taxable income. This includes:
- Active duty pay from service in the U.S. Armed Forces, including basic training
- Compensation received as a cadet at a military academy or while participating in an ROTC program
- Pay from serving in the National Guard or Armed Forces Reserves (even from units based outside of Illinois)
However, not all types of military pay qualify for deduction. The following are excluded:
- Combat pay or other military income that was already exempt from AGI
- Voluntary Separation Incentive (VSI) payments
Illinois Military Spouse Tax Relief:
Nonresident spouses of Service members stationed in Illinois are not subject to state income tax on earnings earned in Illinois, provided they share the same legal residence as the Service member. However, they must still pay income taxes to their home state if required.
Military Retirement Income:
Illinois does not impose taxes on military retirement pay.
Disability Retirement Benefits:
Disability income from federal government programs, including military-related disability pensions, is not taxed in Illinois. Examples of tax-exempt benefits include:
- VA disability compensation and pensions
- Housing grants for specially adapted residences
- Vehicle grants for Veterans who have lost limbs or vision
- Dependent care assistance benefits
Military Survivor Benefits Exemption:
Survivor benefit plans like SBP, RCSBP, or RSFPP are not subject to Illinois state taxes.
VA Dependency and Indemnity Compensation (DIC):
DIC payments to eligible survivors of deceased Veterans or Service members are tax-free in Illinois.
Combat Zone Tax Forgiveness:
If a Service member dies in a combat zone or due to related injuries, any income earned before death can be excluded from their state income taxes. The individual responsible for filing the taxes on behalf of the deceased may claim this exemption.
Returning Veterans’ Homestead Exemption (RVHE):
Veterans returning from deployment may qualify for a $5,000 reduction in the equalized assessed value of their home. Eligibility is limited to Service members who served during an armed conflict. This property tax relief is available for the year the Veteran returns and the following year. Veterans can apply through their County Assessor’s Office.
Disabled Veterans’ Standard Homestead Exemption (DVSHE):
This exemption reduces the assessed property value for Veterans with a service-connected disability, with the amount based on the VA disability rating:
- $2,500 reduction for a rating of 30% to 49%
- $5,000 reduction for a rating of 50% to 69%
- Full exemption for a rating of 70% or more
Surviving spouses who haven’t remarried may continue receiving this benefit. If they move, they can carry over the same exemption to the new property. If the deceased Veteran’s death was service-related and they weren’t receiving the exemption before, their un-remarried spouse receiving DIC may still apply for it.
Furthermore, un-remarried surviving spouses of Service members who died in the line of duty are fully exempt from property taxes on their primary residence.
Disabled Veterans’ Specially Adapted Housing Exemption:
Veterans who are permanently and totally disabled from service-related conditions and have received assistance to buy or adapt a home can get a $100,000 reduction in assessed value. This also applies to mobile homes solely owned and occupied by the Veteran or their spouse. The exemption remains as long as the Veteran or surviving spouse resides at the property.
Illinois Sales Tax Overview:
- State base rate: 6.25%
- Counties can add up to 4.75%
- Combined average: approximately 8.82%
Recreation
Illinois Department of Natural Resources (IDNR) Perks for Service Members and Veterans with Overseas or Mobilized Duty:
The IDNR provides a variety of benefits to Illinois Service Members and Veterans who have been deployed or mobilized abroad.
For Service Members:
Illinois residents who have served overseas or were called to active duty are eligible for waived fees through the IDNR. These benefits include:
- Complimentary camping at state parks (excluding utilities, tent rentals, and cabins)
- No-cost Combined Sportsman’s License and Habitat Stamp
- Free firearm deer permit for the county of your choice, and an archery deer permit (if not already issued at the time of verification)
Eligible individuals must apply within two years of returning from overseas or being released from mobilization. Fee exemptions are granted for each full year or part of a year served, equating to a year of benefits per qualifying service period.
For Veterans:
Illinois Veterans who were deployed or federally mobilized can purchase fishing, hunting, or Sportsman’s Combination Licenses at a 50% discount.
License-Free Hunting and Fishing for Illinois-Based Active Duty Personnel on Leave:
Active duty members who enlisted from Illinois can fish and hunt without a license while on leave. Note that a Federal Waterfowl Stamp and Illinois Habitat Stamp are still required when applicable.
Fishing and Hunting License Waiver for Disabled Veterans:
Disabled Veterans with a VA disability rating of 10% or higher are exempt from needing an Illinois fishing or hunting license. They are also not required to purchase a Habitat Stamp. To obtain this benefit, Veterans must request a Veteran’s Disability Card from their nearest Illinois Department of Veterans’ Affairs office and present documentation verifying their VA disability rating.
Free Camping for Disabled Veterans and Former POWs:
Illinois residents who are disabled Veterans or former Prisoners of War are entitled to free admission and camping at state parks. This benefit also extends to their spouse, minor children, and grandchildren under the age of 18 who accompany them.
Illinois Military & Veterans Miscellaneous Benefits
Veterans Food Pantries in Greater Chicago:
The Greater Chicago Food Depository operates food pantries dedicated to assisting Veterans in need at two locations within the Chicago area.
Locations of Veteran Food Pantries:
- Jesse Brown VA Medical Center: 820 S. Damen Avenue, Chicago, IL 60612 – Located on the 2nd Floor, Damen Catwalk
- Hines VA Hospital: 5000 S. 5th Avenue, Hines, IL 60141 – Auditorium Lobby, Building 9
Open every Thursday from 10:00 AM to 12:00 PM
Illinois Regional Transportation Authority (RTA) Military Service Fare Program:
Service members and Veterans living in Cook, DuPage, Kane, Lake, McHenry, and Will counties may qualify for discounted or complimentary fares through the RTA. These reduced or free rides are valid on fixed-route services provided by the Chicago Transit Authority (CTA), Metra, and Pace. Each transit agency has its own eligibility guidelines.
CTA Military Service Pass (MSP):
The CTA provides free rides for active duty personnel and Veterans with service-connected disabilities.
Eligibility Criteria:
- Active members of the U.S. Armed Forces, National Guard, or Reserves with a valid military ID
- Service members in uniform can show their ID to CTA personnel for complimentary travel
- Veterans with a VA disability rating of at least 10% or those receiving military retirement disability pay
- Veterans with qualifying disabilities and active duty personnel not in uniform must carry a valid CTA Military Service Pass for free rides on CTA buses and trains
(Note: The MSP is not accepted on Pace or Metra services)
Illinois Military Family Relief Fund (IMFRF):
The IMFRF provides monetary assistance to Illinois residents serving in the U.S. Armed Forces, including National Guard and Reserve members on active duty. These grants are meant to help cover essential expenses such as food, housing, utilities, medical bills, and financial emergencies resulting from service-related job interruptions or injuries.
Available Grants Through IMFRF:
- Status-Based Grant ($500): For IL National Guard and resident Reservists on federal active duty
- Needs-Based Grant ($2,000): Based on the financial hardship of the Service member and their family
- Casualty-Based Grant ($5,000): Awarded to those injured in hostile incidents
- State Active Duty Grant ($500): For IL National Guard members who serve on state active duty for at least 30 days
Illinois Wartime Veterans Bonus Programs:
Illinois provides cash bonuses to Veterans and Service members who served during major conflicts including WWII, Korea, Vietnam, the Persian Gulf, and the Global War on Terrorism. Eligibility requires at least one year of Illinois residency before enlistment and an honorable discharge if separated from service.
Bonus Amounts by Conflict:
- World War II: $10/month for U.S. service; $15/month for overseas duty; $9000 for survivors of KIA
- Korean War: $100 for service between June 27, 1950 – July 27, 1953
- Vietnam War: $100 for those awarded the Vietnam Service Medal or Armed Forces Expeditionary Medal for Vietnam service between:
- Jan 1, 1961 – Mar 28, 1973
- Apr 29 – Apr 30, 1975 (Operation Frequent Wind)
- Persian Gulf: $100 for qualifying Veterans who served from Aug 2, 1990 – Nov 30, 1995 and received the Southwest Asia Service Medal
- Global War on Terror: $100 for 30 consecutive or 60 non-consecutive days of foreign/sea service since Sept 11, 2001, with one of the following:
- Global War on Terrorism Expeditionary Medal
- Global War on Terrorism Service Medal
- Iraq Campaign Medal
- Afghanistan Campaign Medal
Compensation for Southeast Asia POWs:
Veterans captured and held as POWs in Southeast Asia receive $50 for each full or partial month of captivity.
Education Programs
Illinois National Guard (ING) Grant Program:
The ING Grant helps eligible members of the Illinois National Guard pay for tuition and select mandatory fees—such as registration, matriculation, graduation, and general activity fees—at public colleges and universities within the state. These benefits apply to both two-year and four-year institutions. The duration of assistance depends on a Service member’s years of Guard service:
- Less than 10 years of Guard duty: Eligible for the equivalent of four years of full-time academic support
- 10 years or more: May receive benefits for up to six academic years of full-time enrollment
Eligibility Requirements for ING:
To qualify, a Service member must:
- Be actively serving in the Illinois National Guard
- Have completed a minimum of one year in the Guard
- Be enrolled at a state-funded Illinois college (two- or four-year)
- Be in good standing on any student loans or state/federal grants
- Maintain satisfactory academic progress based on their institution’s criteria
Guard members with five continuous years of service who experienced an education interruption due to being called to federal active duty for six months or longer may be excused from the “currently serving” requirement.
Educational Opportunities for Dependents of Deceased, Disabled, MIA, or POW Veterans
$250 Educational Grant (Ages 10–18):
Children of qualifying Veterans may receive a $250 grant annually for use toward tuition or other school-related expenses at public elementary, middle, high schools, or vocational schools in Illinois.
Eligibility Criteria:
The Veteran must meet one of the following:
- Illinois residency at the time of enlistment, within six months of joining, or for 15 years after military separation
- Declared MIA or POW
- Rated 100% permanently and totally disabled by the VA, or deemed unemployable due to service-connected issues
- Deceased due to a service-related cause
Eligible children must be biological, adopted, stepchildren, or court-appointed foster children (for at least two years) between the ages of 10 and 18.
Illinois Veterans’ Dependents Scholarship (State Colleges and Universities):
This scholarship program offers full tuition and required fee coverage at public Illinois colleges or universities for dependents of eligible Veterans. Awards are distributed based on a point system—students are granted 120 points total, valid for up to 12 years after starting college.
Point Breakdown:
- 1 point per credit hour (up to 12 per term)
- Points are deducted each term, depending on credit load
Eligibility for Dependents Scholarship:
Veteran must:
- Have been an Illinois resident at enlistment, shortly thereafter, or for at least 15 years after service
- Be a POW or MIA
- Be VA-rated 100% permanently and totally disabled, or
- Have passed away due to a service-related issue
Eligible dependents include:
- A spouse or surviving un-remarried spouse
- Children under age 26
- Stepchildren, adopted, or foster children under 18 when legal relationship began
Illinois Veterans’ Grant (IVG):
The IVG program pays for tuition and mandatory fees at all state-supported colleges, universities, and community colleges in Illinois for qualifying Veterans.
To be Eligible, Veterans Must:
- Have lived in Illinois for at least six months before military service
- Completed one year of active duty, or served overseas in a conflict zone regardless of time served
- Been honorably discharged
- Returned to Illinois within six months of discharge
Children of Veterans Scholarship (University of Illinois):
Each Illinois county may award one scholarship per year to a child of a qualifying Veteran, granting four consecutive years of tuition at the University of Illinois.
Who Qualifies?
Children of Veterans who served in:
- WWI
- WWII
- Korea
- Vietnam
- Or any service starting August 2, 1990
Preference is given to children of deceased or disabled Veterans.
Credit for Military Training and Education:
Colleges and universities in Illinois are required to assess and award academic credit for prior military training and experience whenever possible, enabling Veterans and Service members to fast-track their education.
Illinois Fallen Heroes Scholarship:
Children of Illinois Service members killed in the line of duty may be awarded a $2,500 scholarship deposited into a Bright Start college savings account.
Program Details:
- Must be under 30 years old
- Includes biological, step, and adopted children
- Scholarship is placed into a Bright Start 529 savings plan
- Funds may only be used for approved higher education expenses
- Payouts go directly to the institution—no cash withdrawals allowed
- Eligible schools include most accredited postsecondary institutions
Support for Military Families in Education
Interstate Compact on Educational Opportunity for Military Children (MIC3):
Illinois participates in the MIC3 program to support students from military families facing frequent relocations. This includes:
- Simplifying school transfers and enrollment processes
- Ensuring fair placement in courses and extracurriculars
- Supporting timely graduation
- Promoting consistency in academic standards and assessments
- Encouraging information sharing among schools and states
- Providing flexibility to accommodate unique military family challenges
Illinois Purple Star School Program:
This program, effective as of the 2022–2023 school year, recognizes schools that prioritize and support military-connected students and their families.
To Qualify for Purple Star Status, a School Must:
- Assign a trained military liaison to support student transitions
- Provide ongoing education to staff about military family needs
- Maintain a dedicated section on their website with military-specific resources
This initiative underscores Illinois’ commitment to ensuring military families receive the educational support they deserve.
Housing: Here are the locations of Veterans’ Homes available across the state.
Illinois State Veterans Home at Anna
Illinois State Veterans Home at Chicago
Illinois State Veterans Home at LaSalle
Illinois State Veterans Home at Manteno
Illinois State Veterans Home at Quincy
Illinois State Veterans Prince Home at Manteno
Admission Requirements:
Honorably discharged Veterans who either entered military service as Illinois residents or have lived in Illinois for at least one year prior to applying may qualify for admission if they meet one or more of the following conditions:
- Served in the U.S. Armed Forces for at least one day during an official wartime period, or were deployed to a hostile zone and received a campaign or expeditionary medal
- Retired due to a service-related injury or disability
- Completed a minimum of 24 consecutive months of active duty service after September 7, 1980
- Were part of a U.S. Armed Forces reserve unit, activated to federal duty (excluding training), and completed the mobilization
- Served in the reserves for 20 years and qualify for military retirement benefits
- Were discharged early due to hardship or a force reduction before fulfilling their full service requirement
In addition to these criteria, the Veteran must have a disability, illness, or injury that prevents them from maintaining employment.
Employment and Training Benefits for Illinois Veterans
Veteran Entrepreneur Support Initiatives:
The Illinois Department of Veterans Affairs (IDVA), in collaboration with the Illinois Department of Central Management Services, offers comprehensive training and outreach to help Veterans and Service-disabled Veterans launch or grow businesses. These efforts aim to connect Veteran entrepreneurs with valuable resources including government contracts, educational institutions, trade organizations, and industry professionals.
Workshops, seminars, and training events are held across the state to assist Veterans, Service members, and their families. These sessions provide hands-on support in areas like:
- Government procurement opportunities
- Navigating local, state, and federal contracting
- Business and strategic growth planning
- Certification for Veteran-owned businesses
- Securing capital
- Branding and marketing guidance
State Contracting Preferences: Illinois Veterans Business Program (IVBP):
IVBP strives to ensure that at least 3% of state procurement spending is awarded to certified Veteran-owned businesses. Contracts are available for a wide range of services, including state building maintenance, office supplies, and park maintenance.
Employment Assistance Through IDES:
Veterans receive priority access to employment services at Illinois Department of Employment Security (IDES) offices statewide. Specialized Veteran Employment Representatives assist with job placement, career planning, and training support.
Work Study for Student Veterans:
The VA Work Study Program offers paid part-time positions within IDVA offices for eligible students using VA education benefits and enrolled at least three-quarter time.
Leave & Compensation for Public Employees in Uniform:
Illinois public employees who are also military reservists are entitled to leave for active duty while retaining their seniority and employment benefits. Up to 30 days of full paid leave is available annually for military training. Extended deployments may qualify employees for differential pay—where civilian and military salaries are balanced by the employer. Employees may also use accrued paid leave in lieu of this.
Family Military Leave Protections:
Under the Illinois Family Military Leave Act, employers must offer unpaid leave (up to 15 days for small employers, 30 days for larger employers) to eligible relatives of deployed Service members. A 14-day advance notice is required, and available leave time such as vacation or personal time must be used first, excluding sick or disability leave.
Education & Licensing Oversight by the State Approving Agency (SAA):
The SAA approves education and training programs for GI Bill use in Illinois, covering colleges, vocational schools, apprenticeships, and more—ensuring Veterans can access their benefits.
Veteran Preference in State Hiring:
Veterans and certain family members may receive preference points added to passing scores when applying for Illinois state employment.
- 3 Points: For Veterans with at least six months of honorable service or those discharged due to hardship or disability
- 5 Points: For those who served during combat or a recognized period of conflict
- 10 Points: For Veterans with a VA-rated disability, Purple Heart recipients, surviving spouses, or qualifying parents
Veterans must provide a certified DD214 or DD215 when applying.
Promotion Preference in Municipal Jobs:
Veterans earn additional promotion points for classified civil service positions. They may receive 0.7 points per six months of service, up to a maximum of 30 months.
ISERRA – Employment Protections for Service Members:
The Illinois Service Member Employment and Reemployment Rights Act (ISERRA) protects Service members from discrimination and guarantees reemployment following military duty. It also ensures benefits like accrued seniority, ongoing healthcare options, and fair compensation.
An ISERRA advocate is available to help both Service members and employers understand and comply with the law.
Education Requirement Waivers for Public Safety Careers:
Veterans may have degree requirements waived when applying for positions like state police officers, conservation officers, firefighters, EMTs, and municipal police if they meet certain service criteria and have received relevant campaign medals.
Veterans Applying for EMT Licensure:
Honorably discharged Service members with military emergency medical training may qualify for licensure as EMTs by passing the IDPH exam—applications must be submitted within one year of separation.
Federal Employment Advantages:
Veterans may receive hiring preference in federal employment through added points during assessments:
- 5 Points: For service during specific wartime periods
- 10 Points: For service-connected disabilities (with categories based on severity and medal status)
- Derived 10 Points: For spouses, surviving spouses, and mothers of qualifying Veterans
Veterans with certain medals must meet a 24-month active duty requirement unless exempted due to hardship or disability.
USERRA – Nationwide Job Protection:
The Uniformed Services Employment and Reemployment Rights Act (USERRA) protects civilian employment rights for Veterans and Reserve members nationwide. It includes protections such as:
- Guaranteed job reinstatement after service
- Continuation of seniority, status, and pay
- Up to 24 months of continued healthcare coverage
- Required accommodations for service-connected disabilities
- Pension plan protections
Veterans and Service members can receive assistance through the U.S. Department of Labor’s Veterans’ Employment and Training Service (VETS).
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Burials and Memorials
The National Cemetery Administration (NCA) honors qualifying Veterans and their families by offering a dignified place of burial and a permanent memorial to recognize the Veteran’s service to the country.
These burial benefits include a gravesite in any open national cemetery where space is available, opening and closing of the grave, ongoing site maintenance, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate — all provided at no cost to the family. In some cases, Veterans may also be eligible for a burial allowance. Cremated remains are treated with the same reverence and are either buried or placed in a columbarium within national cemeteries.
Spouses and dependents who qualify may also receive these burial privileges, including interment next to the Veteran and perpetual maintenance of the burial site. Their names, along with birth and death dates, are engraved on the Veteran’s headstone free of charge. Notably, eligible spouses and dependents may be buried even if they die before the Veteran and do not have to be laid to rest in the same cemetery.
National Cemeteries include:
Alton: Alton National Cemetery
Alton: North Alton Confederate Cemetery
Chicago: Confederate Mound
Danville: Danville National Cemetery
Elwood: Abraham Lincoln National Cemetery
Fort Sheridan: Fort Sheridan National Cemetery
Mound City: Mound City National Cemetery
Quincy: Quincy National Cemetery
Rock Island: Rock Island Confederate Cemetery
Rock Island: Rock Island National Cemetery
Springfield: Camp Butler National Cemetery
Illinois VA Benefit Resources
Veterans in Illinois have access to support through a Regional VA Benefits Office and several VA Medical Centers throughout the state.
Illinois VA Regional Benefits Office
- Chicago: Chicago Regional Office
Illinois VA Medical Centers
- Chicago: Jesse Brown VA Medical Center
- Danville: VA Illiana Health Care System
- Hines: Edward Hines Jr. VA Hospital
- Marion: Marion VA Medical Center
- North Chicago: Captain James A. Lovell Federal Health Care Center
Essential Details About Illinois Veteran Benefits:
If you’re a Veteran in Illinois applying for VA benefits for the first time, you’ll need to include a copy of your DD 214 discharge document. This form confirms your discharge classification and includes essential details such as your name, Social Security number, service branch, and the dates you served. Veterans with an honorable or general discharge are typically eligible for most VA benefits.
It’s strongly recommended to store your discharge papers and medical records securely, in a place that both you and your loved ones can easily access. Ideally, keep them in a fireproof safe or another protected location to prevent loss or tampering.
Eligibility for most VA benefits depends on separation from active duty under conditions other than dishonorable. Active duty includes full-time service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, as well as commissioned roles in agencies like the Public Health Service, Environmental Services Administration, or NOAA.
Veterans discharged under dishonorable conditions due to bad conduct from a general court-martial may be disqualified from receiving VA benefits. However, incarcerated Veterans and those on parole may still qualify for certain types of assistance. Local VA offices can offer guidance on benefit eligibility for individuals with complex discharge histories or incarceration status.
Information current as of October 2023.
Benefits for Illinois Veterans
Veterans in Illinois with a VA disability rating of 90% or lower may be entitled to extra state or federal benefits. Reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. Our team can evaluate your current claim to see if you’re eligible for further compensation or services.
