XX Last reviewed:

North Carolina — Veteran Benefits

Complete reference covering 58 benefit categories across 14 service tiers. Verify current eligibility with your County VSO before filing.

At a Glance — What Unlocks by Status / Rating

Veteran benefits unlocked at each service status and disability rating in North Carolina
Status / Rating Headline Benefits Unlocked
Active Duty Combat pay exclusion from NC income tax; SCRA vehicle property-tax exemption; military leave and differential pay; mail-in DL renewal; CDL skills/knowledge test waivers; NCTAP in-state tuition for NG
Guard / Reserve NCTAP tuition assistance (up to $3,240 undergrad / $3,360 grad per term); NG state pension ($105/month at age 60 with 20 years — see Cat. 39 for pending increases); SAAF emergency grants; LGERS military service credit; NG Health Plan access; in-state tuition at all NC public colleges
Military Retiree Full state income-tax exemption on retirement pay and SBP annuities (20-yr or medically retired); "VETERAN" DL designation free; veteran specialty plates; hiring preference; LGERS service credit
Veteran (honorable, no rating) "VETERAN" DL marker (free); specialty plates; hiring preference (5 or 10 pts); CDL waivers; free DD-214 certified copies; in-state tuition; wartime scholarship eligibility (if qualifying service); NCWorks priority career services
0% SC Same as Veteran (honorable, no rating)
10–20% Same as Veteran (honorable, no rating)
30–40% Same as Veteran (honorable, no rating)
50–60% Lifetime disabled-veteran hunting/fishing license ($14 one-time); free NC State Parks annual pass; CCW permit at reduced rate (~$55)
70–90% All 50–60% benefits
100% schedular All 50–60% benefits + free DV license plate (1 vehicle, registration fee waived); free NC State Parks annual pass; CCW ~$55
TDIU Same as 100% schedular for most NC benefits (TDIU treated as 100%)
P&T Property-tax homestead exclusion: **$45,000** of appraised value (current law); proposed phased increase pending S.B. 660 (not yet enacted); all 100% benefits; surviving-spouse transferability
SMC (Housebound/A&A) All P&T benefits; HUT exemption if vehicle modified with federal SAH/SHA grant
Surviving spouse / dependents Property-tax exclusion (unremarried surviving spouse, same $45,000 threshold); Children of Wartime Veterans Scholarship; DIC and SBP tax-free at state level; Gold Star Family plate (free); burial rights in state veterans cemeteries

Taxes

1. Property Tax — Primary Residence

Honorably discharged veteran with **100% permanent and total service-connected disability** (or who receives specially adapted housing benefits under 38 U.S.C. § 2101), OR the **never-remarried surviving spouse** of such a veteran (or of a veteran who died from a service-connected condition). No income limit.

Authority: N.C.G.S. § 105-277.1C; NCDMVA — [milvets.nc.gov/benefits-services/veterans-property-tax-relief](https://www.milvets.nc.gov/benefits-services/veterans-property-tax-relief)

2. Property Tax — Vehicle / Personal Property

**Current law:** There is **no general motor-vehicle property-tax exemption** for disabled veterans under current NC law. The only existing vehicle exemption covers a vehicle **modified with special equipment to accommodate a service-connected disability when the modification was funded by a federal SAH/SHA grant** (N.C.G.S. § 105-275(18)).

Authority: N.C.G.S. § 105-275(18) (current SAH/SHA exception); H.B. 39 (pending)

3. Vehicle Sales / Use Tax

**No general veteran or military exemption** from the NC Highway Use Tax (HUT) at vehicle registration (N.C.G.S. § 105-187.6).

4. State Income Tax — Active Duty Military Pay

Active-duty military pay is **subject to North Carolina income tax** under general rules. Exception: **combat zone pay** excluded federally under 26 U.S.C. § 112 is also excluded from NC adjusted gross income. A **180-day filing extension** applies after leaving a combat zone.

Authority: N.C.G.S. § 105-153.5; NCDOR Armed Forces page — [ncdor.gov/taxes-forms/individual-income-tax/filing-topics/armed-forces-information](https://www.ncdor.gov/taxes-forms/individual-income-tax/filing-topics/armed-forces-information)

5. State Income Tax — Military Retirement Pay

**Fully exempt** from NC state income tax for: - Veterans who served **20 or more years** in the uniformed services, OR - Veterans **medically retired** under 10 U.S.C. Chapter 61.

Authority: N.C.G.S. § 105-153.5(b)(5a); NCDOR — [ncdor.gov/taxes-forms/individual-income-tax/filing-topics/military-retirement](https://www.ncdor.gov/taxes-forms/individual-income-tax/filing-topics/military-retirement)

6. State Income Tax — SBP Annuity

**Fully deductible** from NC adjusted gross income. Survivor Benefit Plan (SBP), Reserve Component SBP (RCSBP), and Retired Serviceman's Family Protection Plan (RSFPP) payments all qualify. DIC payments to surviving spouses are tax-free at both the federal and state levels.

Authority: N.C.G.S. § 105-153.5(b)(5a); same filing line as Category 5.

7. State Income Tax — General

- **VA service-connected disability compensation** is non-taxable under federal law and excluded from NC gross income. - **State taxes owed by a service member killed in a combat zone** are forgiven;

8. Sales Tax Exemption

North Carolina does not issue a general sales-tax exemption card to veterans or active-duty military. No broad sales-tax exemption exists for veteran-status purchases. The only vehicle-related relief is the HUT exception for SAH/SHA-modified vehicles (Category 3).

9. Other State Tax Breaks

**NC ABLE Account (N.C.G.S. § 147-86.70 et seq.):** Veterans with a service-connected disability with onset before age **46** (expanded from 26 in 2026) may open a tax-advantaged NC ABLE savings account. Annual contribution limit: $20,000 (2026); ABLE-to-Work provision allows additional contributions from earnings. Earnings and qualified withdrawals are tax-free at both state and federal levels. Account assets are disregarded for most means-tested public benefits. Medicaid clawback from NC ABLE accounts is prohibited unless required by federal law.

Authority: N.C.G.S. § 147-86.70

Vehicle, Travel & ID

10. Vehicle Registration Fee

**DV Plate (100% or TDIU):** Annual registration fee **waived for one vehicle**. Requires VA rating letter (within 1 year) confirming 100% or Individual Unemployability. See Category 11.
Verify locally: Requires VA rating letter (within 1 year) confirming 100% or Individual Unemployability.

Authority: N.C.G.S. § 20-79.4

11. Disabled Veteran License Plates

**Disabled Veteran Plate (100% or TDIU):** - One plate **free** — both registration fee and plate fee waived. - Second vehicle: standard fee applies. - Application: Form MVR-33A, certified by a NCDMVA-accredited VSO; attach VA rating letter (within 1 year). - Must renew annually; no fee for the primary DV plate.

Authority: N.C.G.S. § 20-79.4; [milvets.nc.gov/benefits-services/military-and-veteran-license-plates](https://www.milvets.nc.gov/benefits-services/military-and-veteran-license-plates)

12. Other Veteran / Military Specialty Plates

North Carolina offers 31+ specialty military/veteran plates.

Authority: N.C.G.S. § 20-79.4

13. Toll Road / Bridge Exemption

No statewide toll exemption for veterans or disabled veterans is in effect. S.B. 334 (2023–2024 Session) proposed a toll exemption for disabled veterans on NCDOT turnpike projects but did not become law. ⚠️ Verify locally whether any individual toll authority offers discretionary waivers.

14. Public Transit Discount

**No statewide mandate.** Individual transit authorities set their own policies.
Verify locally: ⚠️ Verify locally; fares subject to change. - Other systems (GoRaleigh, GoTriangle, CATS Charlotte): Discounts vary; no confirmed uniform statewide veteran fare program.

15. Disabled Parking Privileges

Veterans with a qualifying disability (VA documentation accepted) may obtain a standard **NC Disability Parking Placard** through NCDMV. The 5-year permanent placard costs **$5.00** (Form MVR-37A, updated April 2026); temporary placards also cost $5. Limit of 2 per person. Medical recertification not required at renewal for persons age 80 or older.

Authority: N.C.G.S. § 20-37.6; NCDMV Form MVR-37A

16. Driver License / State ID Fee

**"VETERAN" Designation on NC DL or ID Card:** - Added **free of charge** to any NC driver license or ID for honorably discharged veterans. - Required documentation: DD-214, DD-215, WD AGO 53/55, NAVMC 78-PD, or NAVPERS separation document showing honorable discharge. - Standard fees for a new, renewed, or duplicate DL still apply; the designation itself adds no cost. - Apply at any NC DMV Driver License Office.

Authority: NCDMV Veteran Designation program — [ncdot.gov/dmv/offices-services/military/Pages/veteran-designation.aspx](https://www.ncdot.gov/dmv/offices-services/military/Pages/veteran-designation.aspx)

17. CDL Fee / Skills-Test Waiver

**Even Exchange (knowledge AND skills tests waived):** Available for service members with specific MOSs (Army 88M, 92F, 14T; Air Force 2T1, 2F0, 3E2; Marine Corps 3531; Navy EO). No CDL issued in past 2 years, no suspension/revocation, no disqualifying convictions. Apply via Form CDL-15MW with supporting documentation.
Verify locally: ⚠️ Verify locally whether any fee waiver is available.

Authority: NCDMV Form CDL-15MW; [ncdot.gov/dmv/offices-services/military](https://www.ncdot.gov/dmv/offices-services/military/Pages/default.aspx)

18. Veteran Designation on DL / ID

See Category 16. The word "VETERAN" printed on the face of the NC DL/ID is the only official designation; it is free for honorably discharged veterans.

Outdoor Recreation

19. Hunting License

**Lifetime Disabled Veteran Combination Hunting and Inland Fishing License:** - Eligibility: NC resident, **50% or greater** VA service-connected disability rating, honorably discharged. - Fee: **$14** one-time lifetime fee. ⚠️ A $5 processing fee has been reported in some sources but is not confirmed on the official NCWRC disabled-licenses page; contact NCWRC at 833-950-0575 to confirm total cost at time of application. - Validity: Lifetime, as long as the individual remains 50%+ rated. - Application: Mail or in-person only (not online); requires VA certification. Contact NCWRC at 833-950-0575.
Verify locally: ⚠️ A $5 processing fee has been reported in some sources but is not confirmed on the official NCWRC disabled-licenses page; contact NCWRC at 833-950-0575 to confirm total cost at time of application.

Authority: N.C.G.S. § 113-270.1D; NCWRC — [ncwildlife.gov/outdoors/accessible-opportunities/disabled-licenses](https://www.ncwildlife.gov/outdoors/accessible-opportunities/disabled-licenses)

20. Fishing License — Freshwater

**Lifetime Disabled Veteran Inland Fishing License:** - Eligibility: NC resident, 50%+ VA disability, honorably discharged. - Fee: **$14** one-time lifetime fee (see note on possible processing fee in Category 19). - Lifetime validity.

Authority: N.C.G.S. § 113-270.1D; NCWRC

21. Fishing License — Saltwater

**Lifetime Disabled Veteran Coastal Recreational Fishing License:** - Eligibility: NC resident, 50%+ VA disability, honorably discharged. - Fee: **$14** one-time lifetime fee (see note on possible processing fee in Category 19). - Combined Sportsman + Coastal option: **$139** one-time (see Category 22).

Authority: N.C.G.S. § 113-270.1D; NCWRC

22. Combination Hunt/Fish License

**Lifetime Disabled Veteran Sportsman License:** Includes hunting + inland fishing (excludes bear/duck/coastal). Fee: **$126** one-time.
Verify locally: Confirm whether additional processing fees apply with NCWRC (833-950-0575).

Authority: N.C.G.S. § 113-270.1D; NCWRC

23. Trapping License

No disabled-veteran trapping license fee waiver has been identified in current NCWRC or NCDMVA sources. Standard trapping licenses apply. ⚠️ Contact NCWRC (833-950-0575) to confirm whether any veteran trapping discount exists.

24. State Parks — Day Use / Entrance

Standard day-use entrance to most NC State Parks is **free to all visitors**. The **$5/vehicle** discounted entrance fee applies at reservoir recreation areas (Falls Lake, Jordan Lake, Kerr Lake state recreation areas) and is available to veterans, seniors (62+), and active-duty military. Non-veteran adults pay standard rates at these facilities.

Authority: NC State Parks — [ncparks.gov/about-us/fees/annual-passes](https://www.ncparks.gov/about-us/fees/annual-passes)

25. State Parks — Camping

Veterans receive a **$6/night discount on campsite reservations** (standard campsites). The discount does not apply to activity fees, primitive/group sites, cabins, or marina dockage.

Authority: NC State Parks; Army Benefits Website (North Carolina)

26. State Parks — Annual / Lifetime Pass

**Free NC State Parks Annual Pass for Veterans with Service-Connected Disability:** - Eligibility: Honorably discharged veteran with **any service-connected disability rating** (not limited to 100%). - Benefit: Free annual pass (standard $70 value), including day-use at reservoir recreation areas, ferry passes to Hammocks Beach/Bear Island, boat launches at Carolina Beach and Hammocks Beach, and canoe/kayak/paddleboard rentals at select parks. - Application: Submit request form and VA Summary of Benefits Letter at [ncparks.gov](https://www.ncparks.gov/about-us/fees/annual-passes/press-release/free-annual-pass-veterans-disabilities).

Authority: N.C. Session Law 2024-45; NC DNCR — [dncr.nc.gov/news/press-releases/2024/09/20/new-state-law-provides-free-state-parks-annual-passes-veterans-disabilities](https://www.dncr.nc.gov/news/press-releases/2024/09/20/new-state-law-provides-free-state-parks-annual-passes-veterans-disabilities)

27. Boat / Watercraft Registration

No veteran-specific boat registration fee waiver exists in current NCWRC or NCDMVA sources. Standard NCWRC registration fees apply to all boaters. Active-duty military with a valid out-of-state registration are exempt from re-registering a vessel in NC under a SCRA-adjacent provision. ⚠️ Verify with NCWRC (833-950-0575).

Education

28. In-State Tuition

**Veteran / GI Bill users:** Under 38 U.S.C. § 3679(c) (Veterans' Access, Choice and Accountability Act), all NC public colleges and universities must charge **in-state tuition** to covered individuals using Post-9/11 GI Bill (Ch. 33), Fry Scholarship, MGIB (Ch. 30), VR&E (Ch. 31), or DEA (Ch. 35) who live in NC, regardless of formal residency status. Applies within 3 years of discharge or retirement.

Authority: 38 U.S.C. § 3679(c); NC UNC System Policy on Military Student Success; individual institution registrars.

29. Tuition Waiver — Disabled Veteran

Not available in this jurisdiction.

30. Dependent Education Benefit

**North Carolina Scholarship for Children of Wartime Veterans (N.C.G.S. §§ 165-20 through 165-45):**
Verify locally: ⚠️ Exact per-semester dollar cap not published on the portal; confirm with NCDMVA.

Authority: N.C.G.S. §§ 165-20 through 165-45; H.B. 696 (2025–2026 Session)

31. Spouse Education Benefit

Not available in this jurisdiction.

32. National Guard / Reserve Tuition Assistance

**NC Tuition Assistance Program (NCTAP):** - Eligibility: Active drilling NC National Guard member in good standing with 2 or more years remaining on contract, attending an approved NC institution. - Award: Up to **$3,240/term (undergraduate)** or **$3,360/term (graduate)** at public schools; amounts vary at private institutions. - Covers: Associate, bachelor's, and graduate degrees, graduate certificates, and vocational training. - Beginning Summer 2026: Separate application window for the Summer II session. - Can combine with federal Tuition Assistance and GI Bill (no dual-compensation for the same costs). - Subject to fund availability.

Authority: NCNG NCTAP program; N.C.G.S. § 116-143.3 (in-state tuition for Guard members)

33. K-12 Support

**Military Interstate Children's Compact (MIC3):** NC is a full member state. Removes enrollment, placement, graduation, and extracurricular barriers for military children transferring between member states. Contact: 910-678-2304.

Authority: MIC3 Compact; NC DPI — [dpi.nc.gov/students-families/student-support/nc-supports-military-children](https://www.dpi.nc.gov/students-families/student-support/nc-supports-military-children)

34. State Student Loan / Scholarship

**NC Vietnam Veterans, Inc. (NCVVI) Scholarship:** - Amount: **$1,500–$2,500/year** for undergraduate study at any college, community college, or trade school. - Eligibility: NC resident who is a Vietnam veteran, OR the spouse or direct descendant of a Vietnam veteran. - Apply: [ncvvi.org](https://www.ncvvi.org) or through the CFNC scholarship search.
Verify locally: ⚠️ Verify locally whether any new state loan program was enacted in the 2026 session.

Employment & Licensing

35. Veterans Hiring Preference

**N.C.G.S. §§ 126-80 through 126-88 and § 128-15:** Veterans who served on active duty (other than training) during a period of war or campaign receive **5-point or 10-point preference** on numerically scored examinations for initial employment, promotions, transfers, and reduction-in-force situations at every NC state department, agency, and institution.

36. Professional License Fee Waiver

**N.C.G.S. § 93B-15.1:** NC occupational licensing boards must **not charge** a military-trained applicant or military spouse an **initial application fee** for any license, certification, registration, or temporary practice permit. Exception: practice of law (Chapter 84 is excluded).

Authority: N.C.G.S. § 93B-15.1

37. Professional License Reciprocity — Military Spouse

Under N.C.G.S. § 93B-15.1, military spouses holding an equivalent license in another state may obtain a **license by endorsement** in NC, with the initial application fee waived. Temporary practice permits are available while endorsement is processed. Exception: law (Chapter 84).

Authority: N.C.G.S. § 93B-15.1; DOL Military Spouse License Transfer Guide (NC edition)

38. Business License Fee Break

**Veteran-owned business procurement preference:** NC state agencies may provide procurement preferences for certified veteran-owned and service-disabled veteran-owned businesses (SDVOBs). Federal SBA SDVOSB certification is recognized. NC has not established a separate state SDVOB certification program as of 2026.
Verify locally: **No stand-alone state business license fee waiver** specific to veterans confirmed. ⚠️ Verify with NCDMVA or NC Secretary of State's office.

39. Civil Service / Retirement Credit

**LGERS (Local Government Employees Retirement System) Military Service Credit:** - No-cost credit for returning LGERS employees who left for active duty, received other-than-dishonorable discharge, and returned within 2 years of discharge OR after 10 additional years of LGERS contributions. - Purchasable credit (actuarial cost) for those with 5+ years of LGERS contributions who do not meet the no-cost threshold. - Contact: 919-814-4590 or NC.Retirement@nctreasurer.com.
Verify locally: ⚠️ Verify current effective rate with NCNG Retirement Services (984-664-7892) before relying on any specific figure.

Authority: N.C.G.S. §§ 127A-40, 127A-116 et seq.; NCNG Retirement Services

Housing & Financial

40. State Home Loan / Down-Payment Assistance

**NC 1st Home Advantage Down Payment (NC Housing Finance Agency):** - Available to U.S. military veterans qualifying for an NC Home Advantage Mortgage. - Amount: **$15,000** in down payment assistance. - Structure: 0% deferred second mortgage; forgiven 20%/year at the end of years 11–15 (fully forgiven by end of year 15). - Income limit: Annual income must not exceed **$152,000**. - Purchase price limit: **$495,000**. - Minimum credit score: 640. - Apply through participating private NCHFA lenders (no government office visit required).

Authority: NCHFA NC 1st Home Advantage Down Payment program

41. Financial Assistance / Emergency Relief

**NC Heroes Fund (NCHF):** - Eligibility: NC residents or those stationed in NC who are active duty, deployed, veterans, or wounded/ill/injured service members. - Contact: 1-888-777-0955 or info@ncheroes.org.

42. State Veteran Bonus

North Carolina does not have an active state military service bonus or mustering-out bonus for veterans. No enactment found in recent sessions. ⚠️ Verify with NCDMVA for any 2026 legislative development.

43. Specially Adapted Housing — State Supplement

Not available in this jurisdiction.

44. Utility / Heating Assistance

**LIEAP (Low Income Energy Assistance Program):** NC participates in the federal LIHEAP program. FY 2026 NC allocation: ~$105.1M. Heating benefit: **$300 minimum / $500 maximum** per household. Income eligibility: 130% FPL; 150% FPL for households with members age 60 or older or who are disabled (a veteran with a VA disability rating qualifies as disabled). Application period: December 1 – March 31.

Authority: N.C.G.S. Chapter 108A; NCDHHS — [ncdhhs.gov/divisions/social-services/energy-assistance/low-income-energy-assistance-lieap](https://www.ncdhhs.gov/divisions/social-services/energy-assistance/low-income-energy-assistance-lieap)

Health & Support

45. State Veterans Home / Nursing Home

**Four active NC State Veterans Homes** (449 total skilled nursing beds):

46. Behavioral / Mental Health Programs

**No separate state-funded behavioral health program** specific to veterans beyond federal VA resources. NC Veterans Service Centers and county VSOs connect veterans to VA mental health programs (PTSD, depression, MST, substance use, CPT/PE therapy, telehealth). Vet Centers provide community-based counseling.
Verify locally: ⚠️ Verify locally whether NCDMVA has any state-funded mental health pilot programs.

47. Dental / Vision / Health Programs

No state-funded dental or vision benefit specific to veterans outside federal CHAMPVA and VA dental programs. Veterans should apply for VA health enrollment and CHAMPVA (for P&T dependents/survivors) through federal channels.

48. Long-Term Care / Aid & Attendance Supplement

No NC state supplement to federal VA Aid & Attendance or Housebound benefits. The four state veterans homes (Category 45) provide the primary state long-term care pathway.

49. Free Legal Aid / Veteran Treatment Courts

**Legal Aid of North Carolina (LANC):** Provides free civil legal assistance to income-eligible veterans and families, including property-tax relief, benefits denials, housing, and family law matters. Not veteran-exclusive but veterans are a priority population.
Verify locally: ⚠️ Confirm availability in your specific county.

50. Concealed Carry / Firearms Fee Waiver

**Concealed Handgun Permit — Reduced Fee for Veterans:** - Eligible: Honorably or generally-honorably discharged veterans (DD-214 required). - **New permit:** $10 fingerprinting + $45 state application fee = **$55 total**. - **Renewal:** **$40**. - Standard public rates: approximately $90 (new) / $75 (renewal). - Documentation: DD-214 showing honorable or general honorable discharge, or VA-issued Veterans Identification Card. - Apply at the county Sheriff's office.

Authority: N.C.G.S. § 14-415.15; S.L. 2025-72 (S.B. 118), effective July 1, 2025

51. Vital Records / Notary Fee Waiver

**Free DD-214 certified copies:** County Registers of Deeds provide free certified copies to NC resident veterans under N.C.G.S. §§ 47-109/113. File a copy with the Register of Deeds for permanent safekeeping.

Legal & Administrative

52. Unique State Programs

**NCWorks Career Services (Priority Veterans Track):** Job assessment, labor market information, resume and interview prep, and priority access to federal employment and training programs. Specialized services for disabled, homeless, long-term unemployed (27+ weeks), formerly incarcerated, or young (18–24) veterans. Portal: [ncworks.gov](https://www.ncworks.gov)

Survivor Benefits

53. Surviving Spouse — Property Tax

**Same exclusion as the disabled veteran (Category 1)** extends to the **never-remarried surviving spouse** of a veteran who: 1. Had a permanent and total service-connected disability, OR 2. Received specially adapted housing benefits under 38 U.S.C. § 2101, OR 3. Died from a service-connected condition (even with no disability rating in place at death).

Authority: N.C.G.S. § 105-277.1C

54. Surviving Spouse — Education

**Children of Wartime Veterans Scholarship (Class I-A):** Children of veterans who died from a service-connected cause are in the highest priority class (Class I-A) with the most favorable funding priority. See Category 30 for full details.

55. Dependent / Survivor State Benefit

**DIC (Dependency and Indemnity Compensation):** Federal tax-free benefit at $1,699.36/month base rate (2026); 8-year add-on: +$360.85/month; per-child add-on: ~$421. NC does not tax DIC payments.

Memorial & Burial

56. State Veterans Cemetery

**Four NC State Veterans Cemeteries:**

Authority: N.C.G.S. § 65-43 et seq.; NCDMVA — [milvets.nc.gov/nc-veterans-cemetery-program-0](https://www.milvets.nc.gov/nc-veterans-cemetery-program-0)

57. Burial Allowance / Plot

Not available in this jurisdiction.

58. Headstone / Memorial / Honors

**Headstones:** NC state cemeteries accept only government-furnished headstones ordered through the VA National Cemetery Administration after consultation with the family. No installation charge. Privately purchased markers are not permitted.
Verify locally: Pending bills as of 2026-05-30 — verify current status at ncleg.