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Iowa Veterans Benefits

Beyond your federal VA disability compensation, Iowa offers its own benefits for veterans — property tax, income tax, education, employment, vehicle, recreation, veterans home, financial. Here's what Iowa veterans can claim, who qualifies, and how to apply.

14 state benefits · Property Tax, Income Tax, Education, Employment, Vehicle, Recreation, Veterans Home, Financial · Last verified 2026-06-16

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Property Tax

  1. Disabled Veteran Homestead Property Tax Credit100% P&T
    100% of property tax levy (full exemption)

    Full property tax credit equal to 100% of the homestead's actual tax levy (i.e., complete exemption from homestead property taxes). Available to veterans with a permanent 100% service-connected disability rating, OR a permanent and total rating based on individual unemployability (TDIU) paid at the 100% rate, as certified by the VA. Surviving spouses receiving DIC also qualify (even upon remarriage). Veteran must own/occupy the Iowa homestead; file by July 1; no annual refiling required. Homestead limited to 40 acres rural / 0.5 acre in-city.

  2. Military Service Property Tax Exemption (Iowa Code 426A)All veterans
    $1,852 reduction in taxable value ($2,778 for WWI veterans)

    Reduces the taxable assessed value of a qualifying veteran's property. Available to any veteran honorably discharged (or 'general under honorable conditions') from active U.S. armed forces, reserves, Iowa National Guard, or merchant marine — no disability rating required. File once with the city/county assessor by July 1; carries forward automatically while the claimant owns the property.

Income Tax

  1. Military Retirement Pay ExemptionAll veterans
    Military retirement fully tax-exempt

    Iowa fully excludes federal military retirement benefits and military survivor (SBP) benefits from state individual income tax, regardless of the retiree's age, under Iowa Code 422.7(31A)/(31B) (effective for tax years beginning on/after Jan 1, 2014). Applies to the extent the pay is in federal AGI; in addition to the general $6,000/$12,000 pension exclusion for those 55+.

  2. VA Disability Compensation Not TaxedAll veterans
    VA disability compensation fully tax-exempt

    VA disability compensation is exempt from Iowa state income tax (VA disability payments are federally tax-free in all states and are not added back for Iowa purposes).

Education

  1. Iowa National Guard Service Scholarship (INGSS)All veterans
    Up to 100% of tuition (subject to annual appropriation)

    State-funded scholarship (Iowa Code 261.86) paying schools directly for tuition for active members of the Iowa Army/Air National Guard at eligible Iowa colleges/universities. Subject to annual legislative appropriation; recent appropriations have funded up to 100% of tuition for fall/spring classes. Requires Iowa residency, active satisfactory Guard membership, completion of initial entry training, and not yet holding a bachelor's degree.

Employment

  1. Veterans Preference (Iowa Code 35C)All veterans
    5 points; 10 points with service-connected disability/Purple Heart

    Honorably discharged veterans receive a hiring preference for public employment across state, county, city, and school positions. For point-rated qualifying exams (civil service), 5 percentage points are added to the veteran's score; an additional 5 points (10 total) are added if the veteran has a service-connected disability, receives VA disability compensation, or is a Purple Heart recipient. Iowa DAS state-hiring page expresses this as 5 points / 10 points.

Vehicle

  1. Disabled Veteran License Plate (free)All veterans
    Free DV plate + no registration fee

    Disabled veterans whose vehicle is provided/assisted by the VA may obtain one Disabled Veteran license plate at no charge, with no registration fee, and renew it free of charge. Requires VA certification submitted to the county treasurer.

  2. Driver's License Fee Exemption100% P&T
    DL fee waiver (100% rating for operator/motorcycle)

    Under Iowa Code 321.191, honorably discharged veterans are exempt from chauffeur/commercial driver's license fees, and veterans with a permanent 100% service-connected disability rating are exempt from operator/motorcycle license fees. Active duty members also receive fee waivers.

Recreation

  1. Lifetime Trout License (Disabled Veteran)100%+ rating
    $65.00 lifetime trout license

    Resident veterans who qualify for/receive the Disabled Veteran Homestead Credit, or who hold a current VA letter showing a 100% service-connected rating, may obtain a Lifetime Trout License for $65.00. This is separate from the $7 lifetime hunting/fishing license.

  2. Resident Disabled Veteran Lifetime Hunting/Fishing LicenseAll veterans
    $7.00 lifetime license (habitat fee waived for hunting)

    Iowa resident veterans with any VA service-connected disability rating (DNR confirms even a 0% rating qualifies), or former POWs, may purchase a lifetime hunting and/or fishing license for $7. Holders of the lifetime hunting license are also exempt from the habitat fee. Veteran must be an Iowa resident (90-day residency) and provide DD-214 plus a current VA service-connected disability letter. Tags and stamps still required separately.

Veterans Home

  1. Iowa Veterans Home (Marshalltown)All veterans
    Residential & nursing care for eligible veterans

    State-operated residential and long-term/skilled nursing care facility in Marshalltown for honorably discharged Iowa veterans (and in some cases spouses). Operated by the State of Iowa.

Financial

  1. Home Ownership Assistance ProgramAll veterans
    $5,000 grant (per IDVA summary)

    Grant (commonly cited as $5,000) to assist eligible post-9/11 service members with purchasing a home in Iowa; tied to qualifying service after the program's effective date (March 10, 2005). Exact current amount per IDVA primary page not re-confirmed this session.

  2. Injured Veterans GrantCombat service
    Up to $10,000

    Grant of up to $10,000 for Iowa service members seriously injured in the line of duty in a hazardous-duty area after September 11, 2001, to assist during recovery.

  3. Iowa Veterans Trust FundAll veterans
    Emergency assistance (varies by need)

    State fund administered by IDVA providing emergency relief to eligible veterans, including assistance for unemployment/underemployment due to service-related causes, vision/hearing/dental care, prescription drugs, counseling, vehicle and housing repairs, and emergency/transitional housing.

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Common questions

What benefits do Iowa veterans get?

Iowa offers veteran benefits across property tax, income tax, education, employment, vehicle, recreation, veterans home, financial. Highlights include Disabled Veteran Homestead Property Tax Credit, Military Service Property Tax Exemption (Iowa Code 426A), Military Retirement Pay Exemption. Eligibility varies — some benefits require a VA disability rating, 100% P&T status, or combat service.

What property tax exemption do disabled veterans get in Iowa?

Full property tax credit equal to 100% of the homestead's actual tax levy (i.e., complete exemption from homestead property taxes). Available to veterans with a permanent 100% service-connected disability rating, OR a permanent and total rating based on individual unemployability (TDIU) paid at the

Does Iowa tax military retirement or VA disability pay?

Iowa fully excludes federal military retirement benefits and military survivor (SBP) benefits from state individual income tax, regardless of the retiree's age, under Iowa Code 422.7(31A)/(31B) (effective for tax years beginning on/after Jan 1, 2014). Applies to the extent the pay is in federal AGI;

Do I need a VA rating to claim Iowa benefits?

Many state benefits are tied to your VA disability rating — the higher your rating, the more you may qualify for. Use the free VA Ready calculator to confirm your combined rating, then check which state benefits you've earned.

State benefit rules, amounts, and eligibility change and vary by county or municipality. Estimated values are approximate. Always confirm current details with the state agency or the official source linked above before relying on a benefit. VA Ready is not affiliated with the U.S. Department of Veterans Affairs or any state agency, and this page is not legal, tax, or financial advice.