If you hold a 100% service-connected disability rating from the VA and live in Iowa, the state adds a sizable layer of benefits on top of your federal compensation: a full property tax exemption on your home, free tuition at Iowa’s three public universities, waived driver’s license and vehicle registration fees, no-cost long-term nursing care at the Iowa Veterans Home, hiring preference for public jobs, and several smaller licensing, relief, and burial benefits. Here is what each one covers and how to claim it.
Full Property Tax Exemption on Your Home
The Disabled Veteran Homestead Tax Credit wipes out property taxes entirely on a qualifying homestead. It covers up to half an acre inside city limits or up to 40 acres outside, including the dwelling and outbuildings. There is no cap on the home’s assessed value, and income limits no longer apply.1Iowa Department of Revenue. Disabled Veteran Homestead Property Tax Credit
A 100% schedular rating qualifies, as does a permanent and total rating based on individual unemployability paid at the 100% rate. You must own and occupy the home as a homestead on July 1 and live there at least six months of the year, with exceptions for active duty service members and veterans in nursing homes.1Iowa Department of Revenue. Disabled Veteran Homestead Property Tax Credit
File Iowa Tax Form 54-049 with your county or city assessor by July 1. Bring your DD-214 and a VA Benefit Summary or Award Letter dated within the last 12 months. Once the credit is approved, you don’t need to reapply each year; just tell the assessor if your situation changes. You can’t claim this credit and the separate Military Service Tax Exemption (a $4,000 reduction in taxable value available to all honorably discharged veterans) at the same time.1Iowa Department of Revenue. Disabled Veteran Homestead Property Tax Credit2MyArmyBenefits. Iowa State Benefits
Surviving Spouses
A surviving spouse or dependent child receiving Dependency and Indemnity Compensation from the VA can keep the credit as long as they remain in the homestead. A surviving spouse receiving DIC qualifies even if the deceased veteran did not hold a 100% rating during their lifetime, and the spouse keeps eligibility after remarriage.1Iowa Department of Revenue. Disabled Veteran Homestead Property Tax Credit
Free Tuition at Iowa’s Public Universities
Starting July 1, 2026, the University of Iowa, Iowa State University, and the University of Northern Iowa must waive all tuition and mandatory fees for veterans with a permanent 100% service-connected disability rating. Governor Kim Reynolds signed House File 2491 into law on April 30, 2026.3Iowa General Assembly. HF 2491 Bill History4Iowa Governor’s Office. Gov. Reynolds Signs Bills Into Law, April 30
To use the waiver you must be admitted to one of the three universities and must first exhaust all other federal and state financial assistance, such as Pell Grants or VA education benefits. The waiver then covers whatever tuition and fees remain.5Forbes. Iowa Passes Bill Providing Free University Tuition for Disabled Veterans6Iowa Department of Veterans Affairs. IDVA Legislative Update
State Income Tax Treatment
Iowa does not tax VA disability compensation. The state also fully exempts military retirement pay from state income tax at any age, under Iowa Code sections 422.7(31A) and (31B), and the exemption applies to residents and nonresidents alike. Military Survivor Benefit Plan annuities are exempt as well.7Iowa Department of Revenue. Military Tax Information2MyArmyBenefits. Iowa State Benefits
Driver’s License and Vehicle Registration
Iowa waives the fee for a standard operator’s license (Class C noncommercial) and for a motorcycle license (Class M or endorsement L) for veterans with a 100% service-connected rating, under Iowa Code section 321.191. Bring your VA Summary of Benefits letter to an in-person renewal at the Iowa DOT. After the documentation is on file, the waiver applies automatically to future renewals, including online renewals.8Iowa DOT. Military Fee Waiver
Iowa also issues Disabled Veteran license plates showing “DV” before the registration number. At an 80% or higher rating, which includes everyone rated 100%, the first set of DV plates is free and the annual registration fee is waived in full. Holders of DV plates may qualify for waived city parking meter fees and can display a persons-with-disabilities parking sticker if the DOT issues one separately.9Iowa Legislature. HSB 94 – Disabled Veteran Plates10Iowa DOT. Military Services If you received a vehicle from the federal government under 38 U.S.C. sections 3901–3904 because of a severe disability, that vehicle is exempt from all Iowa registration fees.11Iowa Legislature. SF 2261
Lifetime Hunting, Fishing, and Trout Licenses
Resident veterans with a service-connected disability can get a lifetime hunting and fishing license from the Iowa Department of Natural Resources using Form 542-1412. The Iowa Department of Veterans Affairs lists the fee at $7.00 for veterans who served on active federal service. Former prisoners of war are also eligible.12Iowa Department of Veterans Affairs. State Benefits
If you qualify for the Disabled Veteran Homestead Tax Credit or can show a VA letter with a 100% rating, you can add a lifetime trout license for $65.13Iowa DNR. Fishing Licenses
Free Nursing Care at the Iowa Veterans Home
The Iowa Veterans Home in Marshalltown provides long-term nursing care to honorably discharged veterans, their spouses (married at least one year before applying), and Gold Star parents who are Iowa residents. For veterans rated 70% or higher, which includes anyone at 100%, there are no out-of-pocket costs for nursing care.14Iowa Department of Veterans Affairs. Apply to IVH
Applications go through your local County Veterans Affairs Office, which confirms Iowa residency before forwarding the paperwork.
Hiring Preference for Public Jobs
Under Iowa Code Chapter 35C, veterans receive hiring preference for jobs with the state, counties, cities, and school corporations. A veteran cannot be passed over for an applicant with equal or lesser qualifications. On scored examinations for state positions, a veteran with any service-connected disability rating can request 10 preference points, the highest tier available, by submitting proof of disability from the VA.15Iowa Department of Administrative Services. Veterans Resources
Once hired, a veteran with preference rights cannot be removed from the position except for incompetency or misconduct, proven after a formal hearing with stated charges and due notice. If preference is denied, you can pursue mandamus, a district court appeal, or binding arbitration.16Iowa Legislature. Iowa Code Chapter 35C Iowa’s rules differ from the federal system in a few ways: the federal Standard Form 15 is not used, preference points do not guarantee an interview, and spouses and parents of veterans are not eligible for derivative preference in Iowa.15Iowa Department of Administrative Services. Veterans Resources
Financial Relief Funds
The Iowa Veterans Trust Fund can help cover unemployment or underemployment tied to service-related issues, vision and hearing care, dental care, durable medical equipment, prescription drugs, counseling and substance abuse services, vehicle repairs, housing repairs, and emergency transitional housing. The Iowa Veterans Commission approves expenditures. The state does not publish specific dollar limits or income thresholds; your County Veterans Service Office handles the application, or you can call the Iowa Department of Veterans Affairs at (515) 252-4698.12Iowa Department of Veterans Affairs. State Benefits
Separately, every Iowa county is required by law to maintain a Commission of Veterans Affairs funded through county property taxes. These commissions provide direct financial help to low-income veterans and their families for medicine, shelter, rent, food, and utilities, and they handle veteran burial expenses and grave upkeep within the county. Eligibility generally requires wartime service, honorable discharge, household income below 300% of the federal poverty guidelines, and assets of no more than $20,000. All information is confidential, and any denial must come with a written explanation.17Iowa Legal Aid. Iowa’s County Veterans Relief Program
Burial at the Iowa Veterans Cemetery
The Iowa Veterans Cemetery in Van Meter buries eligible veterans at no cost, including a government-issued upright granite headstone and perpetual care. Spouses and eligible dependent children may also be buried there, though a $300 interment fee applies for non-veterans. Eligibility follows the VA’s standards under 38 CFR 38.620, and Iowa residency is not required. A DD-214 or equivalent separation document is needed. Gravesites cannot be reserved; burials go into the next available space. Services are held at a committal shelter rather than graveside and are limited to 15 minutes. A ceremonial burial flag is provided at no cost for the casket or urn.18Iowa Department of Veterans Affairs. Eligibility for Burial19Iowa Department of Veterans Affairs. About the Iowa Veterans Cemetery
Where to Start
The County Veterans Service Officer is the single point of contact for nearly all of these benefits. Every Iowa county has one, and they help with VA disability claims, the property tax credit, trust fund applications, admission to the Iowa Veterans Home, and burial arrangements. In Polk County the office is at 2309 Euclid Avenue in Des Moines; offices for other counties are listed on the Iowa Department of Veterans Affairs website at dva.iowa.gov.12Iowa Department of Veterans Affairs. State Benefits20Polk County Iowa. Where Can I Get Help Filing a Claim