To assist the state’s community of veterans and their families, Alabama provides specific benefits in addition to the federal VA compensation and benefits. Alabama state programs for veterans include property tax exemptions, free disabled veteran vehicle tags, tuition support for dependents, veteran hiring preference, recreational access, and more.

Alabama is home to 335,685 veterans, and 143,695 of them, almost 43%, receive VA disability compensation worth more than $4.2 billion a year, per the FY2025 VA Annual Benefits Report. More than half of them report being rated at 70% or higher, a level of impairment that demands substantial support and resources.

Hill & Ponton helps Alabama’s disabled veterans and their loved ones learn about the state and federal benefits they may be entitled to. It explains the specific programs and resources offered by the state of Alabama and how to access them.

Disabled Veterans Tax Exemptions

Do 100% Disabled Veterans Pay Property Taxes in Alabama?

Permanently and totally disabled veterans do not pay property taxes in Alabama. The state offers a full property tax exemption to residents who:

  • are permanently and totally disabled, veteran or not, at any age and any income (Ala. Code 40-9-21); this exemption covers a single-family owner-occupied home and up to 160 acres of land and is personal to the qualifying homeowner
  • acquired their home through a VA Specially Adapted Housing Grant, with no value or acreage cap (Ala. Code 40-9-20); this exemption continues for the veteran’s unremarried widow(er)
  • are 65 or older with a net taxable income of $12,000 or less on the combined federal income tax return (partial exemptions are available at higher incomes)

The homeowner must own and occupy the property as their primary residence on the first day of the tax year they are applying for. Applicants must submit VA documentation verifying disability and file with their local tax county office.

From October 1, 2026, a veteran the VA has determined permanently and totally disabled no longer re-verifies eligibility each year after the initial claim (Act 2026-598); until then, the annual verification requirement stands. A veteran with a 100% permanent and total rating can also obtain a tentative certificate of disability from the county tax assessing official before buying a home, and a loan closing officer may not count ad valorem taxes in that borrower’s debt-to-income ratio (Act 2026-268). Learn more about property tax exemptions.

Does Alabama Tax Military Retirement Pay?

Alabama does not tax military retirement pay. The state exempts military retirement pay and survivor benefits from state income tax, and VA disability compensation is exempt as well. The Alabama Department of Revenue lists both among the income exempt from Alabama income taxation.

Transportation Benefits

Do Disabled Veterans Pay Vehicle Taxes in Alabama?

Disabled veterans in Alabama pay no license fees or ad valorem taxes on a vehicle bought wholly or partly with a VA grant (Ala. Code 40-12-254). The exemption covers one vehicle used for private use only.

Do Disabled Veterans Get Free Car Registration in Alabama?

All veterans with a service-connected disability rated at 10% or higher are exempt from state registration fees, license taxes, and issuance costs for one vehicle registered with a disabled veteran plate. This benefit is limited to personal-use vehicles and requires eligibility verification.

Disabled Veteran Tag Requirements

  • Veterans with a VA service-connected disability rating of 10% or more are eligible to receive a disabled veteran plate exempt from fees. If the veteran’s disability rating is below 50%, they are limited to one plate, and it cannot be transferred to another vehicle.
  • Veterans whose disability rating is higher than 50% or who require special mechanical controls in their vehicle due to a physical disability can be issued multiple license plates. The registration fee for these additional tags is $5.00 each.
  • Veterans whose vehicle was fully or partially funded by the VA are limited to one free disabled veteran license plate, but it is fully exempt from both state license fees and ad valorem (property) taxes.

All the disabled veteran tags in Alabama are non-transferable and must remain with the original qualifying vehicle. Veterans must submit proper VA documentation and apply through their local county licensing office. While the state waives registration fees for eligible applicants, local taxes or fees may still apply, depending on the county. Find out more.

Education Benefits

Does the State of Alabama Cover Tuition for a Disabled Veteran’s Dependents?

The Alabama G.I. Dependents Scholarship Program covers up to $400 per semester hour and $1,000 per semester for textbooks and fees at Alabama’s public institutions and 13 participating private institutions for eligible dependents of:

  • Veterans rated 40% or more service-connected disabled
  • Veterans who died from a service-connected condition
  • Prisoners of war (POWs) and those declared MIA

Eligible dependents include children, stepchildren, spouses, or unremarried surviving spouses of veterans who served honorably for at least 90 days or were discharged earlier due to a service-connected disability. Children and stepchildren of qualified veterans can receive support for up to five academic years (10 semesters).

Spouses and unremarried surviving spouses are eligible for five years of education benefits if the veteran is 100% permanently and totally disabled, or three years (six semesters) if the veteran is rated between 40% and 90% disabled.

Applicants must be Alabama residents. Children have eight years from the date of their application to use their semesters, and so do spouses of veterans rated 100% permanently and totally disabled and surviving spouses of deceased veterans; the spouse of a veteran rated between 40% and 90% has six years. This education benefit cannot be granted retroactively. A child must begin using the scholarship before age 26 (or before age 30 on some tracks, per the Alabama Department of Veterans Affairs).

In the case of stepchildren, the veteran and the stepchild’s parent must be legally married prior to the child’s 19th birthday. The scholarship pays after all other financial aid, and the student files a FAFSA each year.

Free College Tuition for Purple Heart Recipients in Alabama

Veterans who received the Purple Heart may have their undergraduate tuition and fees waived at public colleges and universities in Alabama, including community and technical colleges. Each institution decides whether to grant the tuition waiver (Ala. Code 16-1-43), which is available after other educational benefits are used and covers up to 125% of the required credit hours for the degree or certificate. To qualify, the veteran must:

  • Have received the Purple Heart and submit a DD-214 as proof
  • Be enrolled in an undergraduate program (full-time, part-time, or summer)
  • Be a current Alabama resident and have been a resident at the time of the military service that led to the award

Employment Benefits

Veteran Hiring Preference in Alabama

Alabama law gives employment preference to qualified veterans, especially those with service-connected disabilities, for state government positions. Veterans who were honorably discharged receive 5 extra points added to their score on state job exams. If the veteran has a service-connected disability and receives VA compensation, they get 10 extra points instead. The 10-point preference can be extended to the spouses of certain disabled veterans.

Veterans are also given priority on employment lists when tied with non-veteran candidates. Private employers are authorized to have their own veteran hiring preference policy. Find out more.

Business License Discounts for Disabled Veterans

Honorably discharged veterans who served during wartime and have a 25% or greater physical disability (whether service-connected or not) can receive up to $25 off each of the state, county, and municipal license taxes for a business they operate (Ala. Code 40-12-340 through 40-12-352). The discounted license is not transferable. To be eligible, the veteran must:

  • Be a permanent Alabama resident
  • Have been honorably discharged after serving during wartime
  • Operate a small business alone or with only one employee
  • Have property valued under $5,000 and net income under $2,500

Preferred Vendor Status for Alabama Veteran-Owned Businesses

Alabama businesses that are over 50% veteran-owned may qualify as a preferred vendor. This means they can still win a state contract even if their bid is up to 5% higher than the lowest bid, though selection is not guaranteed. Find out more

Recreation Benefits

Do Disabled Veterans Get Free Access to Alabama State Parks?

Veterans and active-duty military get free entry to all Alabama state parks on days they’re open to the public. Veterans must show proof of service using a military ID (active or retired), a driver’s license with the veteran designation or a DD-214. Veterans and active military also receive a 15% daily discount on overnight accommodations operated by the State Park System, on ID at check-in. Find out more.

Free Access to National Parks for Alabama Veterans

Since November 2020, all U.S. military veterans and Gold Star Families are eligible for free lifetime access to:

  • U.S. National Parks
  • National Wildlife Refuges
  • Bureau of Land Management recreation areas
  • Bureau of Reclamation and U.S. Forest Service sites

Visit nps.gov for details and how to get your free access pass.

Special Discounted Hunting Licenses for Disabled Veterans

  • Veterans who are 100% permanently and totally disabled from a service-connected condition can get a hunting license for $3.60, plus a small issuance fee.
  • Veterans with a 50% disability rating can buy a hunting license for $17.70, plus the issuance fee.
  • Veterans who hold the 100% disabled hunting license can add a nighttime feral swine and coyote hunting license for $1.10. Find out more.

Lifetime Hunting Licenses

Under Ala. Code § 9-11-65.3, veterans who are Alabama residents with a VA disability rating of 40% or higher can buy a lifetime hunting license instead of renewing yearly. Pricing depends on age and whether the veteran is rated 100% totally and permanently disabled.

Disabled Veteran Discounts for Fishing Licenses in Alabama

Alabama veterans with a VA disability rating of 20% or more can buy a discounted saltwater fishing license for $3.60. To apply, the veteran must show proof of their disability from the VA. Licenses are sold at Probate Offices and County License Commissioners, and the disabled hunting licenses are also available at the Montgomery office or the Wildlife and Freshwater Fisheries district offices. Find out more.

Lifetime Fishing Licenses for Disabled Veterans

Veterans with a 20% or higher disability rating may also purchase lifetime freshwater or saltwater fishing licenses instead of renewing annually. Costs vary based on age, with veterans 50 or older paying a reduced rate.

Special 3-Day Event Fishing License

Groups can apply for a special 3-day event fishing license for disabled Alabama residents, allowing up to 20 disabled participants and 20 assistants. This license costs $100. Call Outdoor Alabama at 1-888-848-6887 to apply. Alabama residents 65 and older need no hunting or fishing license at all. Learn more.

Healthcare Benefits

Alabama veterans receive VA care through the Birmingham VA Health Care System, the Central Alabama VA Health Care System, and the Tuscaloosa VA Medical Center. Additionally, vet centers offer readjustment counseling without VA health care enrollment.

VA Medical Centers and Clinics

  • Birmingham VA Medical Center: 700 South 19th Street, Birmingham, AL 35233, (205) 933-8101
  • Central Alabama VA Medical Center-Montgomery: 215 Perry Hill Road, Montgomery, AL 36109, (334) 272-4670
  • Central Alabama VA Medical Center-Tuskegee: 2400 Hospital Road, Tuskegee, AL 36083, (334) 727-0550
  • Tuscaloosa VA Medical Center: 3701 Loop Road East, Tuscaloosa, AL 35404, (205) 554-2000

The Birmingham system’s clinics sit in Bessemer, Irondale, Birmingham, Childersburg, Guntersville, Sheffield, Huntsville (three sites), Jasper, Oxford and Gadsden. Central Alabama adds clinics in Montgomery, Dothan, Monroeville and at Fort Rucker, and Tuscaloosa operates the Selma VA Clinic. The Mobile VA Clinic (4444 Demetropolis Road, (251) 219-3900) belongs to the VA Gulf Coast system.

Vet Centers

  • Birmingham Vet Center: 400 Emery Drive, Suite 200, Hoover, AL 35244, (205) 212-3122
  • Huntsville Vet Center: 415 Church Street, Building H, Suite 101, Huntsville, AL 35801, (256) 539-5775
  • Montgomery Vet Center: 4405 Atlanta Highway, Montgomery, AL 36109, (334) 273-7796
  • Mobile Vet Center: 3221 Springhill Avenue, Building 2, Suite C, Mobile, AL 36607, (251) 478-5906

In addition to VA medical centers and clinics, Alabama operates five veterans homes for aging or chronically disabled veterans who need long-term care. These homes are a partnership between the state, federal government, and private industry to provide affordable, high-quality living and medical support for eligible veterans.

Veterans Homes

  • Bill Nichols State Veterans Home: 1784 Elkahatchee Road, Alexander City, AL 35010, (256) 329-3311
  • Floyd E. “Tut” Fann State Veterans Home: 2701 Meridian Street, Huntsville, AL 35811, (256) 851-2807
  • William F. Green State Veterans Home: 300 Faulkner Drive, Bay Minette, AL 36507, (251) 937-8049
  • Colonel Robert L. Howard State Veterans Home: 7054 Veterans Parkway, Pell City, AL 35125, (205) 338-6487
  • Command Sgt. Maj. Bennie G. Adkins State Veterans Home (opened in 2024): 552 Veterans Parkway, Enterprise, AL 36330, (334) 470-2443

The homes serve veterans who meet VA criteria for skilled nursing care or domiciliary and assisted living. Admission requires an honorable discharge with 90 days of active duty and Alabama residency for the 12 months before applying. Applications are available through local veterans service offices, directly from the facility, or online. Learn more.

Burial and Survivor Benefits

Located in Baldwin County at 34904 State Highway 225, Spanish Fort, AL 36527, (251) 625-1338, the Alabama State Veterans Memorial Cemetery at Spanish Fort includes burial options such as ground crypts, traditional graves, columbarium niches, and a scatter garden.

Veterans, eligible spouses and dependent children can pre-register at no cost, which helps confirm eligibility and eases the process for loved ones later. Required documents include a DD-214 and, if married, a marriage certificate. Pre-registration does not obligate the veteran to be buried there. Learn more.

The VA pays all interment fees for an eligible veteran at the Alabama State Veterans Memorial Cemetery. The veteran receives the plot, a vault for casketed interments, opening and closing of the grave, the headstone and inscription, perpetual care, and a committal service on weekdays at no cost.

Alabama National Cemetery at Montevallo (3133 Highway 119, Montevallo, AL 35115, (205) 665-9039) and Fort Mitchell National Cemetery (553 Highway 165, Fort Mitchell, AL 36856, (334) 855-4731) both have space for casketed and cremated remains; Mobile National Cemetery is closed to new interments.

Surviving spouses and dependents may also be eligible for Dependency and Indemnity Compensation (DIC), Survivors Pension, accrued benefits and Survivors’ and Dependents’ Educational Assistance under Chapter 35. Find out more about getting survivor benefits.

Federal Benefits Available to Alabama Veterans

In addition to Alabama’s specific benefits, disabled veterans also get a wide range of federal VA disability benefits, including:

  • Monthly tax-free compensation payments based on disability rating (calculate it here)
  • Medical care, including mental health services and counseling
  • Home loans and housing benefits
  • Vocational rehabilitation and employment services
  • Education benefits through the GI Bill
  • Survivor benefits
  • Federal hiring preference

Eligibility for some of these benefits depends on the disability rating percentage. Use the links below to see what federal benefits Alabama veterans can get with a rating of 50%, 60%, 70%, 80%, etc.

100% Disabled Veteran Benefits

Alabama veterans with a 100% disability rating receive the highest level of federal VA benefits, including:

  • Full monthly VA compensation
  • Full VA healthcare coverage
  • Dental care
  • Adaptive equipment grants

See all federal benefits for a 100% disabled Alabama veteran

100% Disabled Veteran Benefits for Spouse and Dependents

Spouses and family members of 100% disabled veterans may also be able to get several benefits:

  • CHAMPVA healthcare
  • DIC eligibility
  • Education benefits
  • Continued property tax exemption
  • Access to Alabama state resources

Benefits for Toxic Exposure

Veterans who served at contaminated military bases or who were exposed to Agent Orange, burn pits, or other environmental hazards may qualify for additional VA benefits. Bases in or near Alabama with known toxic exposure issues include:

If you served at a base in a different state, check its history of toxic contamination and potential health effects using the Military Base Toxic Exposure Map or get in touch with us for a free evaluation of your claim.

Getting VA Disability in Alabama

Getting through the VA disability claims process can be tricky, but there are local and national resources to help guide you. These resources include local veteran groups, state-supported VA services, and experienced disability attorneys.

Free Guide to Claiming and Winning Benefits

Attorney Matthew Hill has written THE book on how to get VA disability compensation and benefits. And it’s yours free of charge.

Get the free book

Alabama State Assistance and Resources

  • Veterans Service Offices – The Alabama Department of Veterans Affairs (ADVA) operates Veterans Service Offices (VSOs) in 62 counties, organized into four districts: north, south, east, and west. These offices help veterans, their families, and survivors apply for state and federal benefits earned through honorable military service.
  • Homeless Veteran Program – ADVA supports veterans with state and federal resources through its facilities in North Alabama, the Birmingham/Tuscaloosa Area, Central Alabama and South Alabama.

Help from Experienced Lawyers

Our VA-accredited attorneys proudly serve Alabama veterans who were denied or underrated, with no upfront costs. Contact us for a free evaluation. Even if we don’t take your case, we’ll point you in the right direction!

Hill & Ponton has successfully assisted disabled veterans all over Alabama. Find out more about our legal services: