North Carolina Veteran Financial Benefits
Military Pay – North Carolina taxes military pay earned by resident Service members serving in the U.S. Armed Forces. However, income from service in a designated combat zone or hazardous duty area—already exempt from federal taxes—is also exempt from state income tax. Service members leaving a combat zone have 180 extra days to file state taxes, starting from the date they exit the combat zone or are discharged from a hospital for combat-related injuries.
Military Retirement Pay – Retired pay for those with at least 20 years of service, or for those medically retired from the U.S. Armed Forces, can be deducted from North Carolina’s adjusted gross income. Thrift Savings Plan (TSP) payouts do not withhold state or local income taxes, though they are reported on IRS Form 1099-R and remain subject to state taxation. Early withdrawals may result in higher tax liabilities.
Military Disability Retirement Pay – Payments received for disability retirement—such as pensions, annuities, or similar allowances related to service-connected injury or illness—are not taxable in North Carolina. Qualifying disability benefits include:
- VA disability compensation or pension payments to Veterans or their families
- Grants for wheelchair-accessible homes
- Grants for specially equipped motor vehicles for Veterans who lost sight or limb function
- Benefits from dependent-care assistance programs
Survivor Benefits – Payments from the Survivor Benefit Plan (SBP), Reserve Component SBP (RCSBP), or Retired Serviceman’s Family Protection Plan (RSFPP) can be deducted from North Carolina adjusted gross income. Dependency and Indemnity Compensation (DIC) from the VA remains fully tax-exempt.
State Tax Relief – Special provisions apply for certain Service members and Veterans:
- Cancellation or reduction of unpaid state income taxes incurred before entering the Armed Forces if the Service member dies while serving or is receiving VA disability compensation. No interest is charged on refunds from overpayments.
- Allowances for subsistence, housing, uniforms, mustering-out, mileage, and per diem for official travel are tax-free (unless travel reimbursements exceed actual expenses).
- Uniform-related deductions, including insignia, swords, epaulets, campaign bars, and alteration costs for rank changes, are allowable.
- VA education payments to Veterans in school are tax-exempt.
- VA grants for vehicles or specially adapted housing for severely disabled Veterans are exempt from state income taxes.
- Six-month gratuity payments to beneficiaries of deceased Service members are tax-free.
Property Tax Benefits –
- The first $45,000 in appraised value of a primary residence owned by an eligible disabled Veteran is exempt from property taxes.
- Specially adapted vehicles owned by disabled Veterans are exempt from property tax.
Income Tax Exemption for Nonresident Military Spouses – Income earned by a nonresident military spouse in North Carolina is tax-exempt if:
- The Service member is stationed in North Carolina under military orders.
- The spouse is present solely to accompany the Service member.
- The spouse shares the same state of legal residence as the Service member.
Sales Tax –
- Statewide rate: 4.75%
- Counties may add up to 2.75%
- Average combined rate: 6.99%
Recreation
North Carolina Lifetime Disabled Veteran Inland Fishing License
Available to resident Veterans with a VA disability rating of 50% or higher, this $11 license provides statewide inland fishing access. It covers fishing in Public Mountain Trout Waters, trout waters on game lands, and joint waters, but does not include coastal waters.
North Carolina Lifetime Disabled Veteran Coastal Recreational Fishing License
For resident Veterans with a VA disability rating of 50% or higher, this $11 license allows coastal and joint water fishing statewide. It does not authorize inland water fishing.
North Carolina Lifetime Disabled Veteran Combination Hunting and Inland Fishing License
Resident Veterans with a VA disability rating of 50% or higher can purchase this $11 license for statewide hunting and inland fishing. It includes fishing in Public Mountain Trout Waters, trout waters on game lands, joint waters, and hunting on game lands. It excludes big game hunting, state waterfowl privilege, the federal duck stamp, and coastal fishing.
North Carolina Lifetime Disabled Veteran Sportsman Hunting and Inland Fishing License
This $106 license, for resident Veterans with a VA disability rating of 50% or higher, covers big game hunting, game land hunting, waterfowl hunting, and inland fishing (including Public Mountain Trout Waters, trout waters on game lands, and joint waters). It excludes coastal fishing, the bear management e-stamp, and the federal duck stamp.
North Carolina Lifetime Disabled Veteran Unified Sportsman/Coastal Recreational Fishing License
For $117, resident Veterans with a VA disability rating of 50% or higher get statewide big game hunting, game land hunting, waterfowl hunting, inland fishing, and coastal fishing. It does not include the bear management e-stamp or federal duck stamp.
Resident Rates for Nonresident Service Members and Their Dependents
Nonresident U.S. Armed Forces members stationed in North Carolina, along with their spouse and dependents under 18, qualify for resident pricing on Wildlife Resources Commission licenses. Active-duty nonresidents stationed outside North Carolina are also eligible for resident rates on short-term and annual hunting, fishing, and trapping licenses.
License Exemption for Resident Service Members Home on Leave
North Carolina resident Service members stationed outside the state who are home on leave for 30 days or less may hunt and fish (inland or coastal) without purchasing a license. Military ID and leave paperwork must be carried while hunting or fishing under this exemption.
Mountain Heritage Trout Fishing License Exemption for Veterans
Veterans—resident or nonresident—who have received an honorable discharge can fish in Mountain Heritage Trout waters without a license. Proof of service and honorable discharge (such as a DD214) must be carried while fishing.
Education Programs
North Carolina National Guard Tuition Assistance Program (NCTAP):
The NCTAP provides tuition reimbursement for active drilling members of the North Carolina National Guard who are enrolled in an approved educational institution within the state. Eligible Guard members may receive reimbursement for associate, bachelor’s, or graduate degrees, graduate certificates, as well as vocational or technical training.
This benefit may be accessed even before completing initial active duty training. Funding is dependent on availability and may change from semester to semester.
North Carolina In-State Tuition for Nonresident Service Members and Dependents:
Service members stationed in North Carolina on active duty, along with their dependents, may qualify for in-state tuition rates. All members of the North Carolina National Guard are also granted in-state tuition, regardless of their active duty status.
If a Service member is reassigned outside the state, they can still retain in-state tuition eligibility as long as they remain continuously enrolled in the same program. Dependents of qualifying Service members are also eligible for this benefit.
North Carolina In-State Tuition for Nonresident Veterans and Dependents:
Veterans who are nonresidents, along with their dependents, may also qualify for in-state tuition at North Carolina schools.
North Carolina Scholarship for Children of Wartime Veterans:
This scholarship program offers financial aid to children of certain wartime Veterans to attend schools within the state. The award covers up to eight academic semesters and must be used within eight years.
North Carolina Vietnam Veterans, Inc. Scholarship Program (NCVVI):
NCVVI provides scholarships ranging from $250 to $1,500 for undergraduate study. Funds may be applied toward tuition or educational expenses at accredited colleges, universities, community colleges, junior colleges, or trade schools.
North Carolina Interstate Compact on Educational Opportunity for Military Children (MIC3):
The MIC3 helps reduce challenges faced by military children due to frequent moves and deployments. Key goals include:
- Ensuring quick enrollment without delays from transferring records or differing school entry requirements
- Supporting consistent student placement despite variations in attendance policies, schedules, grading, or course content
- Guaranteeing eligibility for academic programs and extracurricular activities
- Helping military-connected students graduate on time
- Establishing rules for uniform data collection and information sharing among schools, states, and military families
- Coordinating with other compacts related to military children
- Encouraging cooperation among schools, parents, and students to promote academic success
Purple Star Award Program for Military-Friendly Schools in North Carolina:
The Purple Star designation recognizes schools that demonstrate strong support for military families. To qualify, schools must appoint a trained liaison to assist military-connected students and educate staff on the unique challenges these students face. In addition, each school must maintain a dedicated webpage offering resources specifically for military families.
Housing: Locations of Veterans Homes
North Carolina State Veterans Homes:
The state of North Carolina operates four skilled nursing facilities dedicated to serving Veterans. These full-service homes are designed to enhance the well-being and quality of life of their residents. Each facility is staffed with highly trained professionals who deliver excellent medical care along with engaging programs and activities that support daily living. Care is provided by registered nurses, licensed practical nurses, and certified nursing assistants, all working under the supervision of licensed physicians.
North Carolina State Veterans Home at Black Mountains
North Carolina State Veterans Home at Fayetteville
North Carolina State Veterans Home at Kinston
North Carolina State Veterans Home at Salisbury
Services Offered at Each Facility:
- Safe and comfortable living environment
- Spacious accommodations in a welcoming setting
- Nutritional guidance from a licensed dietitian
- Support from professional social workers
- Assistance from a Veterans Service Officer in applying for VA benefits
- Access to physical, occupational, and speech therapy services
- Engaging recreational opportunities
- On-site activities, community trips, and volunteer-supported programs
- Year-round special events to recognize and honor Veterans
- Hospital services provided through VA Medical Centers or nearby hospitals
Eligibility for North Carolina State Veterans Homes:
To be considered for admission, applicants must:
- Have served on active duty in the U.S. Armed Forces (excluding training-only service)
- Hold an honorable or general discharge under honorable conditions
- Be a North Carolina resident for at least 24 months prior to admission
- Receive a referral from a licensed physician confirming the need for skilled nursing care
- Be determined disabled due to age, illness, or other conditions verified by a physical exam
- Have needs that the Veterans Home can adequately meet
Costs are based on the actual expenses of care, with payment adjusted according to the Veteran’s available financial resources.
Employment and Job Training: Veterans’ Benefits
Military Leave for North Carolina State Employees:
State employees who serve in a reserve component of the U.S. Armed Forces are entitled to up to 120 hours of military leave each federal fiscal year for training. If called to involuntary active duty, they will continue to receive their regular pay for up to 30 days. After that period, they may qualify for differential pay (explained below) for the remainder of their service.
Differential Pay for Active Duty Service:
When state employees who serve in the reserve components are mobilized for more than 30 days, North Carolina provides differential pay. This payment makes up the difference between their state salary (excluding special pay like shift premiums) and their basic military pay (not including housing or subsistence allowances). To determine the correct amount, Service members must submit a Leave and Earnings Statement or similar documentation to their payroll office.
State Pension for North Carolina National Guard Members:
Eligible North Carolina National Guard members can receive an additional state pension. After 20 years of creditable military service, members may qualify for $105 per month. Each year of additional service adds $10.50, up to a maximum of $210 monthly.
Veterans’ Preference in State Employment:
The state extends hiring preference to qualified Veterans in areas such as initial employment, promotions, transfers, reassignments, and during reduction-in-force actions. To claim this benefit, applicants must meet the minimum training and experience standards of the position and demonstrate the ability to perform its duties.
Eligibility for North Carolina Veterans’ Hiring Preference includes:
- Veterans who served on active duty (other than training) during wartime with an honorable or general discharge under honorable conditions
- Veterans who served in campaigns, expeditions, or operations where a campaign badge or medal was awarded by the Department of Defense
- Veterans with service-connected disabilities incurred during peacetime
- Spouses of disabled Veterans
- Surviving spouses or dependents of Veterans who died in wartime service, whether directly or indirectly caused by that service
- Surviving spouses or dependents of Veterans who died during peacetime service in the line of duty
For non-scored positions, Veterans are credited with relevant military service on a year-for-year and month-for-month basis. For scored positions, eligible applicants receive an additional 10 points on their examination score.
Federal Employment Veterans’ Preference
Federal law grants Veterans—especially those with disabilities or qualifying service—priority over non-Veterans in federal civil service hiring and retention during workforce reductions. Depending on their service, Veterans may be awarded 5 or 10 extra points on examinations and hiring scores.
5-Point Preference: Awarded to Veterans who served:
- During wartime, or
- Between April 28, 1952, and July 1, 1955, or
- More than 180 consecutive days (other than training) between February 1, 1955, and October 15, 1976, or
- During the Gulf War (August 2, 1990 – January 2, 1992), or
- More than 180 consecutive days (other than training) between September 11, 2001, and August 31, 2010, the end of Operation Iraqi Freedom, or
- In a campaign or expedition that earned a campaign medal or Armed Forces Expeditionary Medal (e.g., Grenada, Lebanon, Panama, Southwest Asia, Somalia, Haiti).
10-Point Preferences:
- Compensable Disability (CP): Veterans with a 10–29% compensable disability rating
- 30% Compensable Disability (CPS): Veterans with a 30% or higher compensable disability rating
- Disability Preference (XP): Veterans with a service-connected disability or who received a Purple Heart but don’t qualify under CP or CPS
- Derived Preference (XP): Spouses, surviving spouses, or mothers of Veterans may qualify. In certain cases, both a spouse and a mother can be eligible if requirements are met.
Special provisions apply for spouses of Veterans who are unemployable due to 100% disability, retired due to service-connected disability, or unable to qualify for positions within their usual occupation due to disability.
For those who enlisted after September 7, 1980 (or began service on or after October 14, 1982), continuous service of 24 months or the full obligated period is generally required, except in cases of service-connected disability, hardship, or other qualifying separations under federal law.
USERRA (Uniformed Services Employment and Reemployment Rights Act)
USERRA safeguards employment rights and benefits for Service members and Veterans who leave civilian jobs for military service. It strengthens enforcement measures and extends protections to federal employees as well.
Key Provisions of USERRA:
- Job Protection: Guarantees up to five years of cumulative military leave with reemployment rights, with exceptions for certain longer service obligations or national emergencies.
- Disability Accommodation: Employers must provide reasonable accommodations for Service members disabled during military service. Veterans recovering from service-related injuries may have up to two years after service completion to return to work.
- Reemployment Rights: Returning Service members are reinstated to the job they would have held if they had not left for service, including the same pay, seniority, and benefits. Employers must also provide training or retraining when needed.
- Health & Pension Coverage: Service members on active duty for more than 30 days may continue employer health coverage for up to 24 months (at up to 102% of the premium). Those on duty for fewer than 31 days retain regular coverage as if still employed. Pension plans remain fully protected under USERRA.
Eligibility for USERRA Benefits:
Covers Veterans, National Guard members, and U.S. Armed Forces Reserve members who leave civilian employment for training or active duty.
The Department of Labor, through the Veterans’ Employment and Training Service (VETS), provides assistance with USERRA claims for all eligible individuals, including federal and postal employees.
Burials and Memorials
It’s important to ensure that your wishes regarding burial in a national cemetery, as well as the use of a VA-provided headstone or marker, are clearly documented and stored with your personal paperwork and medical records.
The National Cemetery Administration (NCA) honors the service of eligible Veterans and their families by offering a dignified final resting place and a lasting memorial that reflects their sacrifice and dedication to the nation.
VA Burial Benefits include:
- A gravesite in any national cemetery with available space
- Opening and closing of the grave
- Ongoing care and maintenance of the site
- A government-issued headstone or marker
- A burial flag
- A Presidential Memorial Certificate
All of these are provided at no cost to the family. In certain cases, Veterans may also qualify for a burial allowance. Cremated remains are treated with the same dignity and are interred or placed inurned within VA national cemeteries.
Family Eligibility:
These benefits also extend to a Veteran’s spouse and dependent children. They may be buried alongside the Veteran, with perpetual care of the gravesite included. The spouse’s or dependent’s name, along with birth and death dates, is engraved on the Veteran’s headstone at no expense to the family. Notably, eligible spouses and dependents may be buried even if they pass away before the Veteran, and they are not required to be interred in the same cemetery as the Veteran.
National Cemeteries include:
New Bern: New Bern National Cemetery
Raleigh: Raleigh National Cemetery
Salisbury: Salisbury National Cemetery
Wilmington: Wilmington National Cemetery
North Carolina VA Benefit Resources
Veterans in North Carolina have access to a Regional Benefits Office along with several VA Medical Centers across the state.
North Carolina VA Regional Benefit Offices
- Winston-Salem: Winston-Salem Regional Office
North Carolina VA Medical Centers
Salisbury: W.G. (Bill) Hefner VA Medical Center
Asheville: Asheville VA Medical Center
Durham: Durham VA Medical Center
Fayetteville: Fayetteville VA Medical Center
Important Details on North Carolina Veteran Benefits
When applying for VA benefits for the first time, Veterans are required to provide a copy of their DD Form 214 (discharge document). This record verifies discharge status, full name, Social Security number, branch of service, and service dates. In most cases, an honorable or general discharge qualifies a Veteran for the majority of VA benefits.
It is strongly advised to keep your discharge papers and medical records in a secure, easily accessible location. Storing them in a safe or other protected place helps prevent damage, loss, or tampering, ensuring both you and your family can retrieve them when needed.
Eligibility for VA benefits generally depends on a discharge from active duty under conditions other than dishonorable. Active duty refers to full-time service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, or as a commissioned officer in the Public Health Service, Environmental Services Administration, or National Oceanic and Atmospheric Administration.
Veterans who received a dishonorable discharge through a general court-martial for bad conduct may be disqualified from VA benefits. However, certain benefits may still be available to incarcerated Veterans and parolees. VA regional offices can provide clarification regarding eligibility for individuals in prison, on parole, or with multiple discharges under different conditions.
Information current as of November 2023
North Carolina Veteran Benefits
Disabled Veterans in North Carolina with a VA disability rating of 90% or below may be entitled to extra benefits. You can reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. Their team can review your claim and help determine if you qualify for additional support.
