Veteran taxes by state
New Jersey veteran taxes
How New Jersey treats military retired pay and Survivor Benefit Plan annuities in its income tax, and its property tax and vehicle registration relief for disabled veterans — from the state’s own pages.
On this page5 sections
- Military retired pay
- Exempttax year 2025
- SBP annuities
- Exempt
- Property tax
- Exemption or credit
- Vehicle registration
- Check with the state
Military retired pay in New Jersey
Exempttax year 2025Sources 1, 2
New Jersey does not tax U.S. military pensions, with no age, cap or income test; they are not reported on the New Jersey income tax return (2025 Form NJ-1040 instructions). Federal civil service pensions from the Office of Personnel Management stay taxable even when based on credit for military service.
Survivor Benefit Plan annuities
ExemptSources 3, 2
The Division of Taxation states that New Jersey does not tax U.S. military survivor’s benefit payments, which are generally issued by the Defense Finance and Accounting Service; the 2025 Form NJ-1040 instructions list U.S. military pensions and survivor’s benefit payments as nontaxable retirement income.
Property tax relief for disabled veterans
Exemption or creditSources 4, 5
New Jersey grants a full property tax exemption on the dwelling house and the lot on which it stands to an honorably discharged veteran with active duty service in the U.S. Armed Forces whom the U.S. Department of Veterans Affairs certifies as 100% permanently and totally disabled from an active duty service-connected disability. The veteran must be a legal New Jersey resident who owns (fully or partly) and occupies the home as the main residence, and files Form D.V.S.S.E. with the local assessor.
- Separately, honorably discharged veterans with active duty service (and un-remarried surviving spouses) may deduct $250 a year from property taxes (Form V.S.S.).
Surviving spouse
The surviving spouse or civil union/domestic partner of such a veteran, or of a service member who died on active duty, qualifies if a legal New Jersey resident who has not remarried or formed a new civil union/domestic partnership, owns and occupies the home as the main residence, and the deceased was a New Jersey resident at death.
Vehicle registration for disabled veterans
Check with the stateSource 6
The Motor Vehicle Commission’s military plates page lists a Disabled American Veterans plate (DV series) for $15 and does not state any registration fee exemption or discount for disabled veterans; the registration pages read today state none either. The statute could not be read on the Legislature’s site today.
- Plate: Disabled American Veterans (DV1000-DV9999, bottom rim Disabled Vet), $15, by application to the MVC Special Plate Unit.
Sources
Each source was read on October 28, 2026 on the state’s own site, the normal way. The numbers in the sections above point here.
- Information for Current and Former Military Personnel and Families
- 2025 New Jersey Resident Return, Form NJ-1040 (instructions booklet)
- Information for Current and Former Military Personnel and Families (U.S. Military Pension and Survivor’s Benefit Payments)
- 100% Disabled Veteran Property Tax Exemption
- New Jersey Property Tax Programs For Veterans
- Military Personnel