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The $6,000 Veteran Income Tax Exemption

A flat $6,000 exemption for any veteran discharged honorably, or released under honorable circumstances, from active duty on or before the last day of the tax year. It is not a pension exclusion and does not require military retired pay. A spouse or civil union partner who independently qualifies may claim their own $6,000 on a joint return. It does not pass to a surviving spouse, except in the year of death on a joint return.

Verified August 27, 2026

What this benefit is

A flat $6,000 exemption for any veteran discharged honorably, or released under honorable circumstances, from active duty on or before the last day of the tax year. It is not a pension exclusion and does not require military retired pay. A spouse or civil union partner who independently qualifies may claim their own $6,000 on a joint return. It does not pass to a surviving spouse, except in the year of death on a joint return.

What it's worth: $6,000 off your New Jersey taxable income

  • The exemption is $6,000 of income, so the cash saving is your marginal New Jersey rate applied to it rather than $6,000.
  • Eligibility is the discharge, not retired pay. A veteran with no military pension qualifies on exactly the same terms as one with a pension.
  • The discharge must be on or before the last day of the tax year being claimed for.
  • A spouse or civil union partner who independently qualifies claims a second $6,000 on a joint return.

Who is entitled to it

  • You were discharged honorably, or released under honorable circumstances.
  • Your home is in New Jersey.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: April 15, with your return
  1. 1Send the DD-214 or discharge certificate to the Division of Taxation ONCE — by online upload, post or fax. It is a one-time submission, not something filed with every return.
  2. 2Claim the exemption on your return for the year, and in every later year, once the discharge document is on file.
  3. 3If your spouse or civil union partner is also a qualifying veteran, they claim their own $6,000 on a joint return. Each of you must have your own discharge document on file.
  4. 4In the year a veteran dies, the exemption can still be claimed on a joint return. It does not carry to the surviving spouse in later years.
File with
The New Jersey Division of Taxation — the discharge document once, then the exemption on each annual return
Documents you will need
dd214
Annual
Claimed once a year.
CorrectionThis is often described as a military pension exclusion. It is not. It is a flat personal exemption for having been honorably discharged, available whatever your income source, and it does NOT pass through to a surviving spouse.
Worth knowingIt is claimed once and then carried forward, but you have to certify your veteran status the first time.

Sources

Why only one source type: We publish this record to describe how the state taxes military income rather than to route a filing, so the administering department's own guidance is sufficient.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.