What Does 100% VA Disability Get You in NC?

If you carry a 100 percent VA disability rating and live in North Carolina, what you get is the federal monthly compensation of $3,938.58 (2025 rate) stacked on top of a set of state benefits: a $45,000 property tax exclusion on your home, no state income tax on your VA pay, a free disabled veteran license plate, a free State Parks annual pass, lifetime hunting and fishing licenses for about the price of a tank of gas, tuition scholarships for your children, hiring preference for state jobs, and federal protection that keeps ordinary creditors away from your disability payments. Together, the state-level pieces are worth several hundred to several thousand dollars a year depending on your home’s value and your family situation.

The $45,000 Property Tax Exclusion on Your Home

The biggest state-level dollar benefit for most 100 percent disabled veterans in North Carolina is the homestead exclusion under N.C.G.S. § 105-277.1C. The first $45,000 of your home’s appraised value is removed from your tax bill each year. On a $250,000 home, the county taxes you on $205,000 instead. At a typical combined county and municipal rate of around $1 per $100 of assessed value, that’s roughly $450 saved every year you own and live in the house.¹

The exclusion covers the dwelling, the land it sits on up to one acre, and related improvements like a detached garage or storage building. Permanent residence here uses the same definition as the general homestead exclusion in G.S. 105-277.1.²

Who Qualifies

You need to be a North Carolina resident who owns and occupies the home as your permanent residence on January 1 of the tax year. The statute recognizes two paths: you’ve received specially adapted housing benefits under 38 U.S.C. § 2101, or you hold a VA certification showing a service-connected, permanent, and total disability. Discharge must be honorable or under honorable conditions.¹

Temporary absences for medical treatment or a nursing home stay don’t cost you the exclusion, as long as the house stays unoccupied or is lived in by your spouse or a dependent.³ An unmarried surviving spouse of a qualifying veteran keeps the exclusion.¹

The June 1 Deadline

The exclusion is not automatic. File Form AV-9 (Application for Property Tax Relief) with the NCDVA-9 certification at your county tax assessor’s office by June 1 of the tax year you’re claiming.⁴ Miss that date and the exclusion is gone for the entire year. There is no partial-year proration.

No State Income Tax on Your VA Pay

VA disability compensation is not federally taxable, and North Carolina follows the same rule. Your monthly VA payments don’t show up as taxable income on your state return. The same goes for disability pension payments and related VA benefits like grants for specially adapted housing or vehicles.⁵ If VA disability is your only income, your state income tax liability is effectively zero.

Free Disabled Veteran License Plate

North Carolina issues a Disabled Veteran license plate at no charge to veterans with a 100 percent service-connected disability rating or those receiving Individual Unemployability compensation at the 100 percent rate.⁶ You get one free plate per person per year, for either a motor vehicle or a motorcycle.⁷

Apply using DMV form MVR-33A, with Section 3 certified by the NC Department of Military and Veterans Affairs. The standard passenger vehicle registration fee of $46.25 is separate and still applies.⁸

Free State Parks Pass and Cheap Lifetime Hunting and Fishing Licenses

Under a 2024 state law (Session Law 2024-45, Section 15), any veteran with a service-connected disability and an honorable discharge gets the State Parks Annual Pass free. The pass normally costs $90 and covers day-use entry at reservoir recreation areas like Falls Lake and Jordan Lake, ferry access to Hammocks Beach State Park, boat launches, and equipment rentals at select parks. The upgraded Fort Fisher pass for four-wheel-drive beach access, which normally runs $150, is also free on request.⁹ One catch: the free pass covers only the veteran, not a spouse, caregiver, or other family members.¹⁰

Lifetime hunting and fishing licenses for disabled veterans are priced at a token amount. Any veteran with a 50 percent or greater rating qualifies, so these are available to you well below the 100 percent threshold:

Lifetime inland fishing license: $10, covering hook-and-line fishing in inland and joint waters.¹¹
Lifetime sportsman license: $100, bundling hunting and inland fishing privileges.¹²

Both are one-time purchases that never expire, compared with the standard resident combination license that renews every year at a much higher price.

Scholarships for Your Children

The North Carolina Scholarship for Children of Wartime Veterans provides tuition assistance at state-supported colleges, community colleges, and private universities. A 100 percent permanent and total rating puts your child in Class I-A, the most comprehensive tier, which generally covers tuition, room, and board at public institutions. The eligibility classes and their requirements are set out in N.C.G.S. § 165-22.¹³ No scholarship extends beyond four academic years per child.

Age and residency rules are strict. The student must be under 25 at the time of application and domiciled in North Carolina. For the veteran parent, either you were a North Carolina resident before enlisting and entered service from the state, or the child was born in North Carolina and has lived there continuously since birth. Military PCS moves that took your family out of state can disqualify an otherwise eligible student, which catches many families off guard.

Hiring Preference for State Jobs

North Carolina gives veterans a preference when applying for state government jobs. Under G.S. 126-4(4) and G.S. 128-15, the preference applies to initial hiring, promotions, reassignments, transfers, and reduction-in-force decisions. It covers veterans who served on active duty during a war or campaign for which the Department of Defense authorized a campaign badge or medal.¹⁴ The state doesn’t use the federal government’s point system; the preference is applied as policy across hiring and personnel decisions.

Your VA Payments Are Protected From Most Creditors

Federal law (38 U.S.C. § 5301) exempts VA benefit payments from the claims of creditors and from attachment or seizure under legal process, with narrow exceptions.¹⁵ The IRS can levy VA benefits for unpaid federal taxes, and a court can garnish the portion of disability pay received in place of waived military retirement for child support or alimony. Ordinary creditors — credit card companies, medical collectors, civil judgment holders — cannot touch your VA disability.

The protection follows the money regardless of state, but it matters most in households where VA disability is the main income. Keeping the deposits in a dedicated account rather than mixing them with other funds makes the protected status easier to prove if a creditor ever tries to garnish.

How to Apply

Nearly every state-level benefit for disabled veterans in North Carolina runs through one key form: the NCDVA-9, titled “Certification of Disabled Veteran’s for Property Tax Exclusion.” Despite the narrow name, it’s used to verify disability status for other state benefits too. The form is available through the North Carolina Department of Revenue.¹⁶

Have these ready:

DD Form 214 (your discharge papers).
Your VA disability certification letter confirming a service-connected, permanent, and total rating.
Your VA file number and Social Security number for the application forms.

Where you file depends on the benefit. Property tax exclusions go to your county tax assessor with the NCDVA-9 and Form AV-9, due by June 1.⁴ License plate requests go through DMV using MVR-33A. Scholarship applications route through the Department of Military and Veterans Affairs. Keep copies of everything. If something is lost in processing, the burden of refiling is yours.

If Your Property Tax Exclusion Is Denied

Start informally with the county tax office. Many disputes get resolved there without a formal filing. If that fails, appeal to your county’s Board of Equalization and Review, which typically begins hearing cases in early April and issues written decisions. From there you can escalate to the state Property Tax Commission in Raleigh, which meets monthly and functions as a trial court: sworn testimony, documents, and the burden of proof on you. The North Carolina Rules of Evidence apply, so an attorney is worth considering. Property Tax Commission decisions can be appealed further to the North Carolina Court of Appeals, though judicial review is more limited.¹⁷

1
North Carolina General Assembly. North Carolina Code 105-277.1C – Disabled Veteran Property Tax Homestead Exclusion
2
North Carolina General Assembly. North Carolina Code 105-277.1 – Elderly or Disabled Property Tax Homestead Exclusion
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North Carolina General Assembly. North Carolina Code 105-277.1C – Disabled Veteran Property Tax Homestead Exclusion
4
North Carolina Department of Revenue. Application for Property Tax Relief
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MyArmyBenefits. North Carolina Military and Veterans Benefits
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North Carolina Department of Military and Veterans Affairs. Military and Veteran License Plates
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North Carolina Division of Motor Vehicles. Military/Veterans Registration Plate Application
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North Carolina Division of Motor Vehicles. Vehicle Title and Registration Fees
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North Carolina State Parks. New State Law Provides Free State Parks Annual Passes for Veterans with Disabilities
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North Carolina State Parks. Annual Pass for Veterans with Disabilities
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North Carolina General Assembly. North Carolina Code 113-271 – Hook-and-Line Licenses in Inland and Joint Fishing Waters
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North Carolina General Assembly. North Carolina Code 113-270.1D – Sportsman Licenses
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North Carolina General Assembly. North Carolina Code 165-22 – Classes or Categories of Eligibility Under Which Scholarships May Be Awarded
14
NC Office of State Human Resources. Veterans and National Guard Preference Policy
15
Office of the Law Revision Counsel. 38 USC 5301 – Nonassignability and Exempt Status of Benefits
16
North Carolina Department of Revenue. NCDVA-9 Certification of Disabled Veterans for Property Tax Exclusion
17
North Carolina Department of Revenue. Property Tax Appeal Process