Veteran Benefits in Illinois

Veteran Benefits & Resources

Veteran Benefits & Resources in Illinois

Introduction

Illinois is home to more than 600,000 military veterans, supported by a strong network of state programs, VA healthcare systems, and local veteran service organizations. With a long history of military service and a centralized support structure through the Illinois Department of Veterans’ Affairs, the state provides a wide range of benefits for veterans and their families.

This guide highlights key benefits, healthcare services, and organizations available in Illinois so veterans can easily access assistance with education, housing, employment, healthcare, and community support.

Key Veteran Benefits in Illinois

Disabled Veteran Property Tax Exemptions

Illinois offers one of the most robust property tax relief programs for disabled veterans, with benefits increasing based on disability rating:

• 30%–49%: $2,500 reduction in assessed value
• 50%–69%: $5,000 reduction
• 70%+: Full property tax exemption

Source:
https://tax.illinois.gov/localgovernments/property/disabledveterans.html

Illinois Veterans’ Grant (IVG)

Provides full tuition and fee coverage at Illinois public colleges and universities for eligible veterans.

Source:
https://www.isac.org/isac-gift-assistance-programs/illinois-veterans-grant/

Veteran Employment Preference

Veterans receive preference in Illinois state government hiring, helping improve access to public sector jobs.

Source:
https://www2.illinois.gov/cms/veterans/benefits/Pages/default.aspx

Veteran Designation on Illinois Driver License

Veterans can add a “Veteran” designation to their Illinois driver license or ID.

Source:
https://www.ilsos.gov/departments/drivers/drivers_license/veteran_designation.html

Illinois Department of Veterans’ Affairs (IDVA)

Provides assistance with benefits claims, housing, and support programs.

Source:
https://www2.illinois.gov/veterans

VA Disability Benefits by Rating in Illinois

Understanding how your VA disability rating impacts your benefits is especially important in Illinois, where state-level benefits increase significantly as disability ratings rise.

100% Disabled Veterans

Veterans with a 100% service-connected disability rating receive the highest level of support.

In Illinois, this includes:

• Full Property Tax Exemption on your primary residence
• Full federal VA compensation at the highest rate
• Comprehensive VA healthcare at no cost
• Eligibility for CHAMPVA (dependents) and commissary/exchange privileges
• Access to additional benefits such as free or reduced-cost vehicle registration in some cases

Illinois is one of the most tax-friendly states for disabled veterans, especially at higher ratings.

70% Disabled Veterans

Veterans rated at 70% disability receive strong federal benefits and significant state-level advantages.

Key benefits include:

• Higher monthly VA compensation
• Priority access to VA healthcare and specialty services
• Eligibility for Total Disability based on Individual Unemployability (TDIU)
• Full property tax exemption at 70%+ disability level in Illinois

Illinois stands out for offering major financial benefits at this rating threshold.

50% Disabled Veterans

At the 50% disability rating, veterans receive both federal and partial state benefits.

This includes:

• No-cost VA healthcare for all conditions
• Increased monthly compensation
• $5,000 reduction in assessed property value for tax purposes

This level provides a mix of healthcare and financial relief.

Lower Ratings (10%–40%)

Veterans with disability ratings between 10% and 40% still receive meaningful benefits, including:

• Monthly tax-free VA compensation
• VA healthcare for service-connected conditions
• Eligibility for Veteran Readiness & Employment (VR&E) programs
• $2,500 property tax reduction (for qualifying disability levels)

Illinois is notable for offering scaled tax relief even at lower ratings.

No matter your rating, working with an Illinois Veterans Service Officer (VSO) can help ensure you’re receiving every benefit you’ve earned—and assist with increasing your rating if your condition has worsened.