New York veteran taxes

Military retired pay in New York

Exempttax year 2025Sources 1, 2

New York totally exempts military pension payments from New York State, New York City and Yonkers income taxes, with no age, cap or income test. On Form IT-201 the amount is subtracted on line 26 as a pension from the United States, including the military (tax year 2025 instructions).

Survivor Benefit Plan annuities

ExemptSources 1, 2

The Department of Taxation and Finance states that military pension payments received as the beneficiary of retired military personnel are also totally exempt from New York State, New York City and Yonkers income taxes; the line 26 subtraction covers pensions received as a beneficiary of an officer or employee of the United States, including the military.

Property tax relief for disabled veterans

Exemption or creditSources 3, 4

New York’s veterans property tax exemptions are local options that each county, city, town, village and school district chooses whether to offer. Under the alternative veterans exemption (Real Property Tax Law § 458-a), a veteran who served during a period of war or received an expeditionary medal gets 15% off the assessed value of the primary residence, another 10% for combat-zone service, and an additional exemption equal to one-half of the service-connected disability rating, each subject to local maximum limits; the alternative exemption doesn’t apply to special district charges.

• For assessment rolls with taxable status dates on or after October 1, 2026, a municipality may also offer a full exemption from property taxes, special ad valorem levies and special assessments on the primary residence of a veteran the VA considers permanently and totally disabled as a result of military service (RPTL § 458-a(11), L.2025 ch.672, amended by L.2026 chs.59 and 77).
• Period of war: Persian Gulf Conflict (on or after August 2, 1990), Vietnam War (November 1, 1955 to May 7, 1975), Korean War (June 27, 1950 to January 31, 1955) or World War II (December 7, 1941 to December 31, 1946).
• The Cold War veterans exemption (RPTL § 458-b, active duty September 2, 1945 to December 26, 1991) gives 10% or 15% plus the same one-half-of-rating disability add-on; the 10% or 15% base exemption is limited to 10 years unless the municipality removed the limit, and the disability add-on has no time limit.
• Application: Form RP-458-a (or RP-458-b) to the assessor by the taxable status date, March 1 in most communities; a change in rating is reported on Form RP-458-a-Dis.

Vehicle registration for disabled veterans

Fee waiver or discountSource 5

New York gives a fee-exempt registration for one vehicle that a disabled veteran obtained under the federal Title 38 program, which gives qualifying veterans a one-time allowance to buy a vehicle or adaptive equipment. The vehicle must be a passenger, suburban or auto truck or light delivery car of 20,000 pounds or less unladen, used exclusively for passengers and owned by the disabled veteran (forms MV-1E, and MV-1G to renew, with VA Form 21-4502).

• Fee-exempt registrations cannot be renewed online; replacing the vehicle needs new documentation to move the exemption.
• The DMV page read today names no rating-based registration fee waiver and no free disabled-veteran plate.