New York Veteran Financial Benefits
State Tax Exemption on Military Retirement Pay:
Military retirement income received by retired Service members is fully exempt from New York State, New York City, and Yonkers income taxes.
Thrift Savings Plan (TSP) and State Taxes:
TSP distributions are not subject to automatic state or local tax withholding but are reported annually on IRS Form 1099-R. All withdrawals are taxable at the state level, and early withdrawals may result in higher tax liabilities.
State Taxes on Military Pay:
Military earnings for resident Service members are generally taxable in New York unless certain conditions are met:
- Residents stationed and living outside New York are exempt if they:
- Did not maintain a permanent New York residence during the tax year,
- Maintained a permanent residence outside New York for the full year, and
- Spent no more than 30 days in the state during that year.
- Residents stationed overseas are exempt if they:
- Served in a foreign country for at least 450 days within a 548-day period, and
- Spent 90 days or fewer in New York during that same 548-day timeframe.
Military Spouse Residency Relief Act:
Nonresident spouses who share the same state of residence as a nonresident Service member stationed in New York under military orders are exempt from paying New York income tax on wages earned in the state. They must pay taxes to their home state if applicable.
Combat Zone Pay Exemption:
Active duty military pay earned while serving in a designated combat zone is exempt from New York state income tax.
National Guard Active Duty Subtraction:
New York National Guard members called to state or federal active duty can deduct their active duty pay from their state taxable income for the duration of service. This does not apply to active duty training.
Military Disability Retirement Pay:
Military Disability Retirement Pay, whether received as a pension, annuity, or similar allowance for injuries or illness from active service, is excluded from taxable income. This includes:
- Disability compensation and pensions for Veterans or their families,
- Housing grants for wheelchair-accessible homes,
- Grants for vehicles for Veterans who lost vision or limb use, and
- Benefits from dependent-care assistance programs.
VA Dependency and Indemnity Compensation (DIC):
DIC payments to eligible survivors of Service members who died in the line of duty, or to survivors of Veterans who died from service-connected conditions, are tax-free in New York.
Survivor Benefit Plans – SBP, RCSBP, RSFPP:
Payments from the Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP), and Retired Serviceman’s Family Protection Plan (RSFPP) are not taxable in New York.
New York Veteran Property Tax Exemptions
New York offers three main property tax exemptions for eligible Veterans and their families, though availability depends on local jurisdiction (cities, towns, school districts, or villages):
- Alternative Veterans Exemption:
- 15% reduction in assessed property value for wartime Veterans.
- Additional 10% reduction for those who served in a combat zone or earned an expeditionary medal.
- Further reduction equal to 50% of the Veteran’s service-connected disability rating.
- Must be the Veteran’s or eligible family member’s primary residence.
- Cold War Veterans Exemption:
- For Veterans who served on active duty between September 2, 1945, and December 26, 1991.
- 10% or 15% reduction in assessed value (based on local adoption).
- Additional reduction equal to 50% of the service-connected disability rating.
- Duration is limited to 10 years unless made permanent by the jurisdiction (disability portion is permanent).
- Must be the primary residence of the Veteran or spouse.
- Eligible Funds Exemption:
- Reduces the assessed value of property purchased with eligible funds after discharge (up to $7,500).
- Eligible funds include military retired pay, bonuses, insurance payouts, disability compensation, POW compensation, mustering-out pay, and housing grants for seriously disabled Veterans (100% exemption available).
Sales Tax Rates:
- Statewide rate: 4.0%
- County rate: Up to an additional 4.532%
- Average combined rate: 4.00%
Recreation
New York Department of Environmental Conservation (DEC) – Military & Veteran Benefits
Patriot Plan – Free Outdoor Licenses for Service Members:
New York resident Service members on active duty in the U.S. Armed Forces, stationed outside the state, and home on leave for 30 days or less can receive free hunting, fishing, and trapping licenses.
This benefit also applies to New York resident members of the National Guard or U.S. Armed Forces Reserves stationed in or living within the state.
Resident License Rates for Nonresident Service Members:
Nonresident Service members stationed in New York for at least 30 days can purchase fishing, hunting, and trapping licenses at resident rates.
Discounted Licenses for Disabled Veterans:
New York resident Veterans with a VA-rated service-connected disability of 40% or higher may qualify for:
- Fishing, hunting, and trapping licenses for just $5
- Free bowhunting and muzzleloading privileges (requires base hunting license)
- Priority selection for DEC Deer Management Permits
Empire Pass – Free Access for Eligible Service Members:
The Empire Pass allows unlimited day-use vehicle entry to most New York State Parks and DEC-operated facilities. The pass is household-sharable and not tied to a specific vehicle. One free pass is available per household for Service members in the New York National Guard or U.S. Armed Forces Reserves currently serving on active duty in support of the war on terrorism.
Lifetime Liberty Pass – Free & Unlimited Access for Disabled Veterans:
The Lifetime Liberty Pass grants free entry to state parks, DEC day-use areas, and offers additional benefits such as:
- Free use of state boat launches
- Access to historic sites, arboretums, and nature preserves
- Complimentary golf at 28 state park courses
- Free swimming at 36 state park pools
- Discounted camping and cabin rentals at all state parks and DEC campgrounds
Eligibility for the Lifetime Liberty Pass:
Available to New York resident Veterans who:
- Served during a wartime period, and
- Have a VA service-connected disability rating of 40% or higher, or
- Received federal funding for the purchase or modification of a specially adapted vehicle to accommodate their disability.
Education Programs
New York State Education & Tuition Benefits for Service Members, Veterans, and Families
Recruitment Incentive and Retention Program (RIRP):
Available to New York National Guard Service members, RIRP covers tuition costs up to the SUNY (State University of New York) rate for undergraduate degree programs—full-time or part-time. Benefits are limited to eight full-time semesters (extended for five-year programs) or 16 part-time semesters. The maximum award is $1,700 per semester and $3,400 per year.
Veterans Tuition Awards (VTA):
Provides tuition awards to eligible Veterans for full-time or part-time undergraduate, graduate, or vocational training programs in New York. Awards match SUNY tuition rates. Full-time is defined as 12+ credits per semester (or 24+ hours/week in vocational training); part-time is at least 3 but fewer than 12 credits per semester (or 6–23 hours/week in vocational training). VTA can be used with the Montgomery GI Bill but not with the Yellow Ribbon Program or Post-9/11 GI Bill. Awards are limited to:
- 10 semesters for undergraduate study
- 6 semesters for graduate study
- 4 semesters for vocational training
Military Enhanced Recognition Incentive and Tribute (MERIT) Scholarship:
Covers tuition up to SUNY rates for children, spouses, and dependents of Service members or Veterans who died or became permanently disabled in the line of duty. Also covers non-tuition expenses such as books, supplies, transportation, and housing—up to $13,045 per semester for on-campus living or $8,295 for commuters. Benefits are available for four years of full-time study (extended for five-year programs).
Regents Awards for Children of Deceased and Disabled Veterans (CDDV):
Provides $450 annually to students whose parents served during designated military conflicts.
Military Residency Waiver:
Waives New York residency requirements for active duty Service members stationed in the state and their dependents, enabling them to access state educational and financial aid.
Patriot Plan – Educational Leave of Absence:
Allows Service members called to active duty to withdraw from classes without penalty and receive a tuition and fee refund or credit. A copy of active duty orders must be submitted within seven days.
Leave of Absence for Public Employees:
New York public employees who served in the U.S. Armed Forces on or after January 31, 1955, may take up to four years off for education, refresher courses, or retraining, with reinstatement rights if they apply within 60 days after completing their program.
Rainbow Division Veterans Foundation (RDVF) Scholarships:
Awards undergraduate scholarships ranging from $500 to $5,000 to Soldiers of the 42nd Infantry Division and descendants of RDVF members, based on available funding.
Military Interstate Children’s Compact Commission (MIC3):
Ensures children of military families have smooth school transitions despite frequent moves and deployments, including expedited enrollment, consistent academic placement, preserved extracurricular participation, and on-time graduation.
Operation Recognition – High School Diplomas for Veterans:
Offers New York high school diplomas to Veterans who left school early to serve in the U.S. Armed Forces.
Housing: Below are the locations of Veterans Homes
New York State Veterans’ Nursing Homes: The state operates five Veterans’ Nursing Homes, offering high-quality care and rehabilitative services to qualified Veterans and their dependents in need of skilled nursing support.
New York State Veterans Home at Batavia
New York State Veterans Home at Long Island (Stony Brook University)
New York State Veterans Home at Montrose
New York State Veterans Home at Oxford
New York State Veterans Home at St. Albans
Eligibility for Care at New York State Veterans’ Nursing Homes
Applicants must require skilled nursing services and meet specific criteria:
Veterans – Must have entered active duty from New York or been a New York resident for at least one year prior to applying, served a minimum of 30 days on active duty in the U.S. Armed Forces, and received an honorable discharge.
Spouses & Un-remarried Surviving Spouses – Includes spouses married to an eligible Veteran for at least one year prior to application, surviving spouses of eligible Veterans, and un-remarried surviving spouses of Service members who died on active duty (no 30-day service requirement).
Parents of Veterans – Gold Star Mothers and Fathers, whose child died while serving on active duty, are also eligible (no 30-day service requirement).
Admission Priority Order:
- Veteran with spouse
- Wartime Veterans
- Non-wartime Veterans
- Spouses and un-remarried surviving spouses
- Gold Star Parents
Employment & Job Training Benefits for Veterans in New York
Career Services & Priority Access
New York State Career Centers provide free job search assistance to all job seekers, with special priority for Veterans and eligible spouses. Veterans receive:
- Priority of Service – Served first, offered early access to resources, and given priority when opportunities are limited.
- Dedicated Staff –
- DVOPS: Help Veterans with significant employment barriers through case management, job referrals, training connections, and resume/interview prep.
- LVERS: Advocate for Veterans with employers, promote hiring initiatives, and assist with credentialing/licensing opportunities.
Eligibility: At least one day of active duty (not training) with an other-than-dishonorable discharge, or qualifying spouse/un-remarried spouse under specific service-related conditions.
State Employment Benefits
- Military Leave for Public Employees – Reserve Component members receive up to 22 workdays (30 calendar days) of full-paid military leave each year for active duty, training, or service schools. Health coverage for families continues for up to 12 months during federal active duty. After paid leave is used, members receive the difference between their state and military pay.
- Civil Service Veterans’ Preference – Extra exam points for state employment and promotions:
- Disabled Veterans: +10 points (open-competitive) / +5 (promotion)
- Non-disabled Veterans: +5 points (open-competitive) / +2.5 (promotion)
- Veterans with Disabilities Employment Program (55-c) – Allows eligible wartime disabled Veterans to fill certain entry-level positions without an initial written exam.
Business & Entrepreneurship
- Service-Disabled Veteran-Owned Business Program (SDVOB) – Certifies eligible Veteran-owned businesses to participate in state contracting, with a goal of 6% participation.
Family Leave
- Paid Family Leave for Military Families – Up to 12 weeks at 67% pay for qualifying family members of Service members on foreign active duty. Covers deployment-related needs, official ceremonies, rest/reintegration, legal/financial arrangements, and childcare planning.
Federal Employment Preferences
- Hiring Points – Veterans may receive 5 or 10 extra points on federal hiring exams based on service periods, campaign medals, and disability ratings.
- Derived Preferences – Points may also be available to certain spouses, surviving spouses, and mothers of Veterans.
- USERRA Protections – Ensures job rights, seniority, benefits, and health/pension coverage for Veterans returning from military service. Employers must make reasonable accommodations for service-connected disabilities.
Who’s Eligible: Veterans, Reserve, and National Guard members leaving civilian jobs for training or active duty.
Burials and Memorials
It’s important to record your wishes for burial in a national cemetery and the use of a VA-provided headstone, and to keep this information with your personal and medical records.
The National Cemetery Administration (NCA) honors eligible Veterans and their families by offering a dignified final resting place and a lasting memorial that reflects the Veteran’s service to our nation.
Burial benefits may include a gravesite in any open national cemetery with available space, opening and closing of the grave, perpetual care, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate — all provided at no cost to the family. Some Veterans may also qualify for a burial allowance. For those choosing cremation, cremated remains receive the same honors and care as casketed remains, with interment or inurnment in a national cemetery.
These benefits also extend to eligible spouses and dependents, ensuring burial alongside the Veteran and ongoing care of the site. The spouse’s or dependent’s name and dates of birth and death are inscribed on the Veteran’s headstone at no cost. Spouses and qualified dependents may be buried even if they pass before the Veteran, and they do not have to be interred in the same national cemetery.
National Cemeteries include:
Albany: Albany Rural Cemetery Soldiers’ Lot
Bath: Bath National Cemetery
Brooklyn: Cypress Hills National Cemetery
Calverton: Calverton National Cemetery
Elmira: Woodlawn National Cemetery
Farmingdale: Long Island National Cemetery
Schuylerville: Gerald B. H. Solomon Saratoga National Cemetery
New York VA Benefit Resources
Veterans in New York have access to two Regional Benefit Offices along with several VA Medical Centers.
New York VA Regional Benefit Offices
- New York: New York Regional Office
- Buffalo: Buffalo Regional Office
New York VA Medical Centers
- Albany: Albany VA Medical Center: Samuel S. Stratton
- Batavia: VA Western New York Healthcare System at Batavia
- Bath: Bath VA Medical Center
- Bronx: James J. Peters VA Medical Center (Bronx, NY)
- Brooklyn: Brooklyn Campus of the VA NY Harbor Healthcare System
- Buffalo: VA Western New York Healthcare System at Buffalo
- Canandaigua: Canandaigua VA Medical Center
- Montrose: Franklin Delano Roosevelt Campus of the VA Hudson Valley Health Care System (Montrose)
- New York: Manhattan Campus of the VA NY Harbor Healthcare System
- Northport: Northport VA Medical Center
- Syracuse: Syracuse VA Medical Center
- Wappingers Falls: Castle Point Campus of the VA Hudson Valley Health Care System
Key Details on New York Veteran Benefits:
Veterans applying for VA benefits for the first time must submit a copy of their DD 214 discharge paperwork. This document shows your discharge status, full name, social security number, branch of service, and service dates. Honorable and general discharges typically qualify Veterans for most VA benefits.
It’s essential to keep your paperwork and medical records secure and accessible to you and your family, ideally in a safe place to prevent loss or tampering.
Most VA benefits eligibility depends on discharge from active military service under conditions other than dishonorable. Active service refers to full-time duty in the Army, Navy, Air Force, Marine Corps, Coast Guard, or as a commissioned officer in the Public Health Service, Environmental Services Administration, or National Oceanic and Atmospheric Administration.
Veterans discharged with “Dishonorable” status due to bad conduct from general courts-martial may be ineligible for VA benefits. However, Veterans who are incarcerated or on parole might still qualify for certain benefits. VA regional offices can assist with eligibility questions for prisoners, parolees, or those with multiple discharge statuses.
*Information current as of November 2023.
