Indiana Veteran Financial Benefits Overview
Indiana extends several valuable financial benefits to its Service members and Veterans:
- Military Income Tax Relief: Active duty and reserve Service members who reside in Indiana can deduct up to $5,000 of military income from their state taxes. Those deployed outside the U.S. or Puerto Rico automatically receive a 60-day tax filing extension, while those serving in combat zones are granted 180 days post-deployment to file. Additionally, pay earned in combat zones is exempt from Indiana state income tax.
- Tax Breaks for National Guard and Reserve: Indiana National Guard and U.S. Armed Forces Reserve members called to federal active duty can deduct all their military income from state taxes.
- Military Retirement Pay: As of tax year 2022, military retirement pay is completely exempt from Indiana state income tax.
- Non-Resident Military Spouse Exemption: Military spouses who are legal residents of another state and are in Indiana solely to accompany their service member spouse are not required to pay Indiana state income tax on income earned in the state—provided both spouses are residents of the same state and reside together in Indiana due to military orders.
- Disability Retirement Pay and VA Benefits: Military disability retirement income—whether in the form of pensions or annuities—is excluded from taxable income in Indiana. This includes:
- VA disability compensation
- Special housing and vehicle grants
- Dependent-care assistance benefits
- Dependency and Indemnity Compensation (DIC): This survivor benefit, paid by the VA to eligible survivors of fallen or service-connected deceased Veterans, is fully tax-exempt in Indiana.
- Survivor Benefits Plans (SBP, RCSBP, RSFPP): As of 2022, survivor benefits under these military retirement programs are exempt from Indiana income tax.
Indiana Property Tax Deductions for Disabled Veterans
The state offers multiple property tax relief programs for qualifying disabled Veterans and their surviving spouses:
- $14,000 Deduction – For Veterans who served at least 90 days (honorably discharged) and either:
- Are totally disabled (not necessarily service-connected), or
- Are age 62+ with a VA disability rating of 10% or higher
Surviving spouses of eligible Veterans or those who died in service may also qualify.
- $24,960 Deduction – For wartime Veterans (including WWII, Korea, Vietnam, Gulf War) who have a service-connected disability rating of at least 10%. Surviving spouses are eligible as well.
- Charitable Property Tax Deduction – Veterans who receive a home from a nonprofit or tax-exempt organization may qualify for a deduction equal to their VA disability rating (must be greater than 50%). Veterans must have served at least 90 days during a wartime period and received an honorable discharge. Example Deductions:
- 100% rating = 100% of assessed value exempt
- 80% rating = 80% exempt
- 50% rating = 50% exempt
Vehicle Excise Tax Credit
If a Veteran’s property tax deduction exceeds their property’s assessed value, the remaining amount can be used to offset vehicle excise taxes for up to two vehicles. Veterans receive a $2 credit per $100 of unused deduction. However, they must choose between using this as either a property tax credit or a vehicle tax credit—not both.
Sales Tax Information in Indiana:
- Statewide Rate: 7.0%
- County/Local Add-Ons: Not permitted
- Effective Combined Rate: 7.0%
These financial perks are designed to help reduce the tax burden on Indiana’s military community and recognize the sacrifices of Veterans and their families.
Recreation
Indiana Golden Hoosier Passport: 50% Discount for Disabled Veterans and Former POWs
Disabled Veterans and ex-Prisoners of War in Indiana are eligible to receive the Golden Hoosier Passport at half the regular cost. This annual pass grants unlimited access to state-operated parks, forests, recreational areas, and reservoirs throughout Indiana. Keep in mind, this pass does not include admission to historic landmarks, museums, or memorials.
Indiana Hunting License Waiver for Active Duty on Leave
Indiana residents serving on active duty in the U.S. military can hunt within the state while on leave, without needing a hunting license. To qualify, they must carry their military leave paperwork along with a valid Indiana driver’s license or voter registration card during their hunting trip.
Resident-Rate Hunting and Fishing Licenses for Nonresident Military Members
Active duty personnel stationed in Indiana who are not state residents can obtain hunting and fishing permits at the same price as Indiana residents.
Discounted Hunting and Fishing Licenses for Indiana Disabled Veterans
Veterans residing in Indiana with a service-connected disability can buy annual hunting and fishing licenses for just $2.75, or opt for a 10-year license for $27.50. These licenses are valid only for fishing and small game hunting. Additional stamps must be purchased at regular rates for hunting deer, turkey, waterfowl, salmon, or trout.
Education Programs
Indiana High School Diploma Program for Wartime Veterans
Indiana honors its Veterans who left high school early to serve during times of war by offering them an opportunity to receive their high school diplomas. Eligible Veterans who served during the following periods may apply:
- World War II: December 7, 1941 – December 31, 1946
- Korean War: June 27, 1950 – January 31, 1955
- Vietnam War: August 5, 1964 – May 7, 1975
Eligibility Criteria:
To qualify, applicants must have been Indiana high school students in good standing but did not graduate due to enlistment in the U.S. Armed Forces. Additionally, an honorable discharge is required. Diplomas may be awarded posthumously, and applications should be submitted as directed on the form.
Indiana Education Assistance for Service Members, Veterans, and Families
Indiana provides several tuition exemption and financial aid programs for military-affiliated residents:
1. Tuition Waiver for Children of Deceased or Disabled Veterans
- Offers full tuition coverage and mandatory fees for children of Veterans who died in service.
- Children of disabled Veterans receive partial coverage: 20% of tuition plus a percentage matching the Veteran’s disability rating.
- Covers up to 124 credit hours toward undergraduate or professional degrees.
2. Tuition Exemption for Children of Purple Heart Recipients
- Provides 100% tuition and standard fee coverage for children of Purple Heart honorees.
- Applicable up to 124 credit hours at undergraduate or professional levels.
3. Grant for Families of Fallen Indiana National Guard Members
- Spouses or children of Indiana National Guard members who die in the line of duty while on state active duty receive full tuition and fee coverage, up to 124 credit hours.
4. Tuition Waiver for Purple Heart Recipients
- Purple Heart recipients themselves are eligible for full tuition and required fee exemption, up to 124 credit hours.
- Usable for certificate, undergraduate, graduate, or professional programs.
5. Educational Benefits for Former Soldiers’ and Sailors’ Children’s Home Students
- Former residents or graduates of Morton Memorial High School (or the Indiana Soldiers’ and Sailors’ Children’s Home) receive full tuition and fee coverage, applicable toward undergraduate, graduate, or professional degrees (up to 124 credit hours).
Indiana National Guard Education Benefits
Indiana National Guard Supplemental Grant (NGSG)
This grant covers 100% of tuition and regular fees for Indiana National Guard members enrolled at public colleges and universities in the state. It applies to both full-time and part-time students during spring and fall semesters.
National Guard Scholarship Extension
For former Indiana National Guard members who were deployed overseas after 9/11 and were unable to finish their degree. To qualify, they must have used NGSG benefits and received an honorable discharge. The scholarship allows them to return to school either full-time or part-time.
VA-Approved Apprenticeship & OJT Programs
The Indiana State Approving Agency (SAA) authorizes On-the-Job Training (OJT) and apprenticeship programs where Veterans and Reserve component members can use their GI Bill benefits. These programs provide real-world training instead of classroom-based instruction.
- Participants enter into formal agreements with an employer or union.
- Wages start at a minimum of 50% of journeyman wages and gradually increase to 85% by the final month.
- Completion of the program may lead to certification or journeyman status.
- Over 860 occupations are approved for apprenticeship training in Indiana, both union and non-union, ranging from 2 to 5 years in duration.
Resident Tuition for Military-Connected Students
- Nonresident Service Members and Dependents: Eligible for in-state tuition at Indiana’s public institutions.
- Recently Separated Veterans: Nonresident Veterans and Indiana National Guard members may qualify for in-state rates if they enroll within 12 months of honorable discharge.
Support for Military Children’s Education: MIC3 Compact
Indiana follows the Interstate Compact on Educational Opportunity for Military Children (MIC3), aimed at easing school transitions for children of military families.
Key provisions include:
- Ensuring prompt enrollment despite record transfer delays
- Standardizing course placement, attendance, grading, and scheduling across states
- Supporting eligibility for academic and extracurricular activities
- Helping students meet graduation requirements on time
- Promoting communication among schools, states, and families
- Coordinating with other policies that affect military children
- Encouraging cooperation among parents, schools, and the student for educational success
Indiana Purple Star School Program
Indiana recognizes military-friendly schools through the Purple Star School Designation. These schools commit to supporting students from military families by:
- Assigning a trained school liaison who educates staff about the needs of military-connected students
- Offering priority job interviews to Service members and eligible family members who meet qualifications
- Providing a dedicated web page with military family resources
This designation ensures consistent support and resources for children adjusting to new academic environments due to military moves.
Listed below are the locations of Veterans Homes.
Indiana State Veterans Home at West Lafayette
Admission Eligibility:
– Veterans of the U.S. Armed Forces who received an honorable discharge
– Spouses or surviving spouses of qualifying Veterans (must have been married to the Veteran for a minimum of five years before applying)
– Individuals who have lived in Indiana for at least one year directly prior to applying; however, those who enlisted from or were discharged to Indiana may request a waiver
– Gold Star parents whose child lost their life while on active duty in the U.S. military
Employment and Job Training Opportunities for Veterans
Military Leave for Guard and Reserve Members in Indiana
Members of the Indiana National Guard and the U.S. Armed Forces Reserves are entitled to up to 15 days of military leave annually for mandatory training. Employers may choose whether this leave is paid or unpaid. Upon returning, service members must be reinstated to their original or a similar position.
Indiana Military Family Leave
Employers in Indiana with over 50 employees are required to offer up to 10 days of unpaid leave to qualifying family members of service members facing deployment. This leave can be used in the 30 days prior to deployment, during the service member’s leave, or within 30 days following their return. Eligible family members include spouses, children, parents, grandparents, and siblings who have been employed for at least one year.
Voluntary Veterans’ Hiring Preference for Private Employers
Private employers in Indiana may adopt written policies giving employment preference to Veterans for hiring, promotions, and layoffs, provided the policy is applied consistently across the workforce.
Veterans’ Preference in Indiana State Jobs
The state grants a 10% bonus to eligible Veterans on their employment exam scores for civil service roles. To qualify, the Veteran must have served at least 181 days on active duty and received an honorable discharge.
Employment Assistance for Veterans in Indiana
The Indiana Department of Workforce Development supports transitioning service members through the DVOP (Disabled Veterans’ Outreach Program) and the LVER (Local Veterans’ Employment Representative) programs. DVOP specialists focus on job assistance for Veterans with service-connected disabilities or employment obstacles, while LVERs coordinate employer outreach, job referrals, and job fairs.
Federal Veterans’ Hiring Preferences
Veterans may receive additional points when applying for federal jobs:
- 5-point Preference: For Veterans who served during specified periods or conflicts.
- 10-point Preference (CP/CPS): For those with service-connected disabilities.
- 10-point Derived Preference (XP): For eligible spouses, surviving spouses, and mothers of certain Veterans.
USERRA – Uniformed Services Employment and Reemployment Rights Act
USERRA protects the civilian job rights of Veterans and service members, requiring employers to:
- Rehire returning service members in their previous or an equivalent position with the same status, pay, and benefits.
- Extend health coverage for up to 24 months during extended military service.
- Accommodate disabilities sustained during service.
- Count military leave as regular leave in terms of seniority and benefits.
Eligibility:
Applies to Veterans, National Guard members, and Reservists who temporarily leave civilian employment for military training or active service.
The Department of Labor’s Veterans’ Employment and Training Service (VETS) supports individuals filing claims under USERRA, including those in federal employment.
Burials and Memorials
The National Cemetery Administration (NCA) honors eligible Veterans and their loved ones by offering a dignified final resting place and a permanent tribute to recognize the Veteran’s service to the country.
These burial benefits include a gravesite in a national cemetery with available space, the opening and closing of the grave, ongoing maintenance, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate—all provided at no cost to the family. Certain Veterans may also qualify for a burial allowance. Cremated remains receive the same respectful treatment and are inurned or buried with full honors, similar to traditional casketed burials.
Spouses and dependents who meet the eligibility requirements may also receive burial benefits, including interment with the Veteran and perpetual care of the burial site. Their names, along with birth and death dates, are engraved on the Veteran’s marker free of charge. Notably, spouses and dependents may be interred even if they pass away before the Veteran, and burial can take place in a different national cemetery if desired.
National Cemeteries include:
Indianapolis: Crown Hill Cemetery Confederate Plot
Indianapolis: Crown Hill National Cemetery
Marion: Marion National Cemetery
New Albany: New Albany National Cemetery
Terre Haute: Woodlawn Monument Site
Indiana Veteran Benefit Resources
Indiana offers support to Veterans through both a District and a Regional Benefits Office, in addition to VA Medical Centers across the state.
Indiana VA District Benefits Office
- Indianapolis: Midwest District
Indiana VA Regional Benefits Office
- Indianapolis: Indianapolis Regional Office
Indiana VA Medical Centers
- Fort Wayne: VA Northern Indiana Health Care System-Fort Wayne Campus
- Indianapolis: Richard L. Roudebush VA Medical Center
- Marion: VA Northern Indiana Health Care System – Marion Campus
Important information for Indiana Veteran Benefits:
For Veterans applying for VA benefits for the first time, you must submit a copy of your DD 214 (discharge paperwork). This will provide your discharge status, along with your full name, social security number, branch of service, and dates for which you served. Honorable and general discharges qualify a Veteran for most VA benefits.
You should always keep your paperwork, along with your medical records, in a safe place where you and your family can have access to them. It is imperative to have it in a location where it cannot be destroyed or tampered with, which includes a safe.
Your eligibility for most VA benefits is based upon discharge from active military service under other than dishonorable conditions.
Active service means full-time service as a member of the Army, Navy, Air Force, Marine Corps, or Coast Guard, or as a commissioned officer of the Public Health Service, the Environmental Services Administration, or the National Oceanic and Atmospheric Administration.
Any Veteran discharged from the military under the conditions of “Dishonorable” due to bad conduct discharges issued by general courts-martial may bar VA benefits. Veterans in prison and parolees may be eligible for certain VA benefits. VA regional offices can clarify the eligibility of prisoners, parolees, and individuals with multiple discharges issued under differing conditions.
*This information is accurate as of October 2023
Indiana Veteran Benefits
Disabled Veterans in Indiana with a VA disability rating of 90% or lower may qualify for extra state benefits. Reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. We’ll evaluate your claim to see if you’re entitled to additional support.
