New Jersey Veteran Financial Benefits
Military Pay & Combat Zone Exemptions
Military pay is subject to New Jersey state income tax; however, pay earned in a designated combat zone—or while hospitalized due to a combat-related injury—is tax-exempt. New Jersey also follows federal guidelines for tax filing extensions: Service members have 180 days after leaving a combat zone or being discharged from qualifying hospitalization to file and pay state taxes.
Nonresident Military Spouse Tax Exemption
Nonresident military spouses living in New Jersey are exempt from paying state income tax on wages earned in the state. For tax purposes, spouses may choose their home state, the duty station state, or the Service member’s state of legal residence—even if they have never lived there.
Military Retirement Pay
U.S. Armed Forces pensions are fully exempt from New Jersey income tax. Thrift Savings Plan (TSP) distributions are reported on IRS Form 1099-R and may be subject to higher taxes if withdrawn early.
Military Disability Benefits
New Jersey does not tax VA disability payments, including:
- Disability compensation and pension payments
- Grants for wheelchair-accessible homes
- Grants for vehicles for Veterans with certain disabilities
- Dependent-care assistance program benefits
VA Dependency and Indemnity Compensation (DIC)
DIC payments to surviving spouses, children, or parents are tax-exempt in New Jersey.
Survivor Benefit Plans
Payments from SBP, RCSBP, and RSFPP are exempt from state income tax.
Veteran Income Tax Exemption
Honorably discharged Veterans can claim a $6,000 state income tax exemption, in addition to other exemptions. Spouses may also claim the exemption when filing jointly. Surviving spouses can claim this in the year of the Veteran’s death if they meet eligibility criteria.
Property Tax Benefits
- 100% Disabled Veteran Property Tax Exemption: Available to permanently and totally disabled Veterans and their surviving spouses/domestic partners.
- $250 Property Tax Deduction: Available to honorably discharged Veterans and eligible surviving spouses/domestic partners. Both partners may claim the deduction if both are Veterans.
Combat-Related Death Tax Exemption
If a Service member dies from combat-related causes, New Jersey exempts their income for the year of death and cancels any unpaid taxes from qualifying years, with refunds issued for taxes already paid.
Wounded Warrior Caregivers Relief Act
Provides a tax credit of up to $675 (or 100% of the Veteran’s disability compensation, whichever is less) for qualified caregivers of post-9/11 disabled Veterans.
Active Duty Property Tax Deferment
Deployed or mobilized Service members may defer property tax payments on their primary residence until 90 days after returning from service. This deferment does not cover pre-existing delinquencies or municipal utility charges, and interest is retroactively applied from the original due date.
Sales Tax
- State rate: 6.625% (no additional county taxes)
- Exemptions: prescription medications, unprepared foods, and clothing
Recreation
New Jersey Veteran Outdoor and Recreation Benefits
Free Hunting, Fishing, and Trapping Licenses for National Guard Members
Active New Jersey National Guard members may receive free hunting, trapping, and fishing licenses, along with all necessary permits and stamps. To qualify, Guard members must:
- Have completed Initial Active Duty for Training or an Officer Basic Branch Course
- Have participated in unit training assemblies within the last 90 days
- Be current on any court-mandated child support obligations
Resident-Rate Licenses for Nonresident Active-Duty Service Members
Nonresident U.S. Armed Forces members stationed on active duty may purchase New Jersey hunting and fishing licenses at resident prices. Proof of active-duty status is required, and completion of an approved hunter education course is necessary for hunting licenses.
Free Hunting and Fishing Licenses for Disabled Veterans
Honorably discharged New Jersey resident Veterans with a VA-rated service-connected disability are eligible for free hunting and fishing licenses, permits, and stamps. Veterans must provide:
- Proof of service-connected disability (VA certification letter or VA-issued ID card)
- Proof of honorable discharge (DD214 or equivalent)
- New Jersey driver’s license or other proof of residency
Additional Perks for Disabled Veteran License Holders:
- Unlimited antlerless deer permits and one free antlered deer permit per season
- Two free spring turkey permits, one free fall turkey permit, and additional free permits during surplus sales
- Free bear permits
New Jersey State Park Benefits
- Free Park Entry: Available to New Jersey National Guard members who have completed initial active duty training and honorably discharged resident Veterans with a VA-rated service-connected disability.
- Beach Driving Permits for Disabled Veterans: Disabled Veterans may receive a free permit to operate a motor vehicle on designated state park beaches.
- Veteran Organization Event Access: Veterans attending events hosted by Veterans’ organizations receive free park entry, and facility fees are waived for the hosting organization.
- Gold Star Family Access: Gold Star Family members with a New Jersey driver’s license or ID showing Gold Star designation receive free entry to state parks and forests.
National Guard Training Center (NGTC) at Sea Girt
The NGTC Morale, Welfare, and Recreation Facility features a private beach, covered pavilion, campsites, cottages, and picnic areas. These amenities are available to Service members, Veterans, Retirees, and their families.
Education Programs
New Jersey Education Benefits for Veterans, Service Members, and Their Families
Operation Recognition: High School Diplomas for Wartime Veterans
New Jersey awards state high school diplomas to Veterans who left a New Jersey high school to serve in the U.S. Armed Forces during:
- World War I: April 6, 1917 – November 11, 1918
- World War II: September 16, 1940 – December 31, 1946
- Korean War: June 23, 1950 – January 31, 1955
- Vietnam War: December 31, 1960 – May 7, 1975
Eligibility:
- Must be a current New Jersey resident who left a New Jersey high school to serve during one of the above timeframes
- Must have received an honorable discharge
- Diplomas may also be awarded posthumously
New Jersey National Guard Tuition Waiver Program (NJNGTP)
Waives tuition at New Jersey public colleges and universities for eligible New Jersey National Guard Service members and their surviving spouses or children.
- Covers up to 16 credits per semester tuition-free (after other financial aid is applied)
- Does not cover fees, books, or other costs
Eligibility:
- Completed Initial Active Duty Training
- Active drilling Service member in good standing
- Accepted and in good standing in an undergraduate or graduate program
- Surviving spouse/children eligible if the Service member was killed in the line of duty
Veterans Tuition Credit Program – Vietnam Veterans Tuition Aid
Provides tuition reimbursement for New Jersey Veterans who served during the Vietnam conflict.
- Up to $400 per year for full-time students
- Up to $200 per year for part-time students
Prisoner of War (POW) or Missing in Action (MIA) Tuition Benefit Program
Offers free undergraduate tuition at New Jersey public or private colleges for children of Service members declared POW or MIA after January 1, 1960.
War Orphans Tuition Assistance
Provides $500 per year for four years to children of Service members who:
- Died while serving,
- Died from a service-connected disability, or
- Are declared missing in action
New Jersey Vietnam Veterans Memorial Foundation Scholarship
Awards two $2,500 scholarships annually to high school seniors attending a college, university, or trade/technical school.
Interstate Compact on Educational Opportunity for Military Children (MIC3)
Designed to help children of military families adjust to school changes caused by frequent moves and parental deployments by:
- Ensuring quick enrollment and transfer of educational records
- Preventing disadvantages from differences in attendance, grading, or course requirements
- Supporting extracurricular participation and on-time graduation
- Encouraging cooperation between schools, states, and military families
Purple Star School Program for Military-Friendly Schools
Recognizes schools with strong support for military-connected students.
Requirements:
- Appoint a trained school liaison for military family support
- Ensure teachers understand the needs of military-connected students
- Maintain a dedicated school webpage with resources for military families
Housing for Veterans in New Jersey
New Jersey Veterans Memorial Homes
The Division of Veterans Healthcare Services operates three state Veterans Memorial Homes offering long-term care for eligible Veterans and their family members. These facilities provide a safe, supportive environment with medical, rehabilitative, and daily living assistance tailored to the needs of those who served.
New Jersey State Veterans Home at Menlo Park
New Jersey State Veterans Home at Paramus
New Jersey State Veterans Home at Vineland
New Jersey Veterans Memorial Homes – Care and Eligibility
The New Jersey Veterans Memorial Homes provide 24/7 medical and nursing care from a dedicated team that includes physicians, nurse practitioners, registered nurses, licensed practical nurses, and trained nursing assistants.
Residents also have access to rehabilitative services—including occupational, physical, and speech therapies—along with recreational programs overseen by licensed therapists.
Eligibility for Admission:
- Honorably discharged Veterans of the U.S. Armed Forces
- The Veteran’s spouse
- Un-remarried surviving spouse of an eligible Veteran
- Gold Star Parents of a Service member killed in action during a wartime period
Additional Requirements:
- Spouses or surviving spouses must be at least 50 years old and have been married to the Veteran for at least 10 years before applying.
- Preference is given to applicants who have been New Jersey residents for at least two years immediately before applying.
Military & Miscellaneous Benefits
Iowa Veterans Trust Fund – This program offers financial support to Iowa Veterans and their families.
Available assistance includes:
- Travel: Up to $1,000 for wounded Veterans to cover costs directly related to follow-up medical care.
- Unemployment Aid: As much as $3,000 in a 12-month period (lifetime cap of $6,000) for those unemployed due to prolonged physical or mental conditions, or disabilities.
- Job Training / Education Support: Lifetime maximum of $5,000.
- Counseling Services: Up to $5,000 per year for individual or family counseling.
- Dental Care: Lifetime limit of $10,000.
- Audiology: Up to $1,500 per ear within a 12-month period.
- Emergency Home Repairs: Maximum of $10,000 for the lifetime of the Veteran.
- Emergency Vehicle Repairs: One-time benefit of up to $5,000.
- Emergency Room Costs: Lifetime limit of $7,500.
- Durable Medical Equipment: $5,000 per year with a $10,000 lifetime limit.
Eligibility: Iowa residents who served at least 90 days on active duty (not for training) and were honorably discharged, along with their spouses and dependents, may qualify. Household income must be at or below 300% of the Federal Poverty Guidelines. Assistance can be used for:
- Job loss or reduced employment due to service-connected conditions
- Vision, hearing, and dental needs
- Medical equipment purchases
- Prescription medications
- Substance abuse treatment and counseling
- Vehicle or home repairs
- Temporary housing in emergencies
Iowa Injured Veterans Grant Program – This initiative provides up to $10,000 to Service members or honorably discharged Veterans who sustain combat-related injuries, helping family members be present during recovery. Care must be given at a facility outside the Veteran’s official home of record.
Grant payments are issued in four $2,500 installments:
- Upon medical evacuation from a combat zone after a combat injury.
- Thirty days post-evacuation if still hospitalized or undergoing treatment/rehabilitation (excludes routine follow-ups).
- Sixty days post-evacuation under the same conditions.
- Ninety days post-evacuation under the same conditions.
Eligibility requirements:
- Residency & Service: Either an Iowa resident who served in any active or reserve branch after September 11, 2001, or a nonresident who served in the Iowa National Guard after that date. In all cases, discharge must be under honorable conditions.
- Injury Criteria:
- Sustained a combat-related injury in a combat or hostile fire zone.
- The injury required evacuation to a military hospital or at least 30 consecutive days of hospitalization.
- The injury occurred in the line of duty.
Veterans remain eligible after leaving service if they are still receiving treatment or rehabilitation for the same injury or illness.
Burials and Memorials
Be sure to record your wishes regarding burial in a national cemetery and the use of a VA-provided headstone, and keep this information with your personal documents and medical records.
The National Cemetery Administration (NCA) honors qualified Veterans and their families by offering a dignified final resting place and a lasting tribute that reflects the Veteran’s service to the nation.
These burial benefits may include: a gravesite in any open national cemetery with available space, opening and closing of the grave, perpetual upkeep, 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 as casketed remains, with inurnment or interment in national cemeteries.
Eligible spouses and dependents are also entitled to burial benefits, which include placement alongside the Veteran and ongoing care of the burial site. The spouse’s or dependent’s name, along with birth and death dates, will be inscribed on the Veteran’s headstone at no expense. Notably, these benefits apply even if the spouse or dependent passes away before the Veteran, and they are not required to be buried in the same national cemetery.
National Cemeteries include:
Beverly: Beverly National Cemetery
Pennsville: Finn’s Point National Cemetery
New Jersey VA Benefit Resources
Veterans in New Jersey have access to a Regional Benefits Office as well as VA Medical Centers that provide essential services and support.
New Jersey VA Regional Benefits Office
- Newark: Newark Regional Office
New Jersey VA Medical Centers
- East Orange: East Orange Campus of the VA New Jersey Health Care System
- Lyons: Lyons Campus of the VA New Jersey Health Care System
Key Details on New Jersey Veteran Benefits
If you’re a Veteran in New Jersey applying for VA benefits for the first time, you’ll need to submit a copy of your DD Form 214 (discharge document). This form confirms your discharge classification, full name, Social Security number, branch of service, and the dates you served. Veterans with an honorable or general discharge typically qualify for most VA benefits.
Always store your discharge papers and medical records in a secure location that’s accessible to you and your family. Use a safe or another protected space to prevent loss, damage, or tampering.
For most benefits, eligibility depends on being discharged from active duty military service under conditions other than dishonorable. Active duty includes full-time service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, or service as a commissioned officer in the Public Health Service, Environmental Services Administration, or the National Oceanic and Atmospheric Administration.
A discharge labeled “Dishonorable” resulting from a general court-martial for bad conduct can disqualify you from VA benefits. However, some incarcerated Veterans and those on parole may still be eligible for certain benefits. Local VA regional offices can confirm eligibility in cases involving imprisonment, parole, or multiple discharges with varying conditions.
Information current as of November 2023
