Military retirement and state taxes
Partly. Kentucky lets you exclude up to $31,110 of pension income, including military retirement, and some retirees can exclude more based on when they served.
Fort Campbell · Fort Knox
VA loans in Kentucky
Can you use a VA loan in Kentucky?
Yes. You can use a VA loan anywhere in Kentucky, from Louisville to Radcliff. Kentucky gives military retirees a partial tax break on their retirement pay. We lend in Kentucky and help military families buy across the state, including Guard and Reserve families.
Good to know
What's different about buying in Kentucky
Property tax help for disabled Veterans
Kentucky's disability homestead exemption takes about $49,000 (adjusted every two years) off your home's assessed value if you're rated totally disabled. Apply through your local tax office after you move in.
Fort Campbell straddles two states
Fort Campbell sits on the Kentucky-Tennessee line. Tennessee has no state income tax on wages, and Kentucky does, so which side you live on can change your take-home pay.
Tax rules shown are general and current as of October 2026. Confirm the details with your county or the state before you rely on them.
PCSing to Kentucky?
Bases I help families buy near
Wherever your orders say, we lend there. Here's where families usually look.
- Fort CampbellOak Grove, Hopkinsville, Clarksville (TN)
Buying near Fort Campbell → - Fort KnoxRadcliff, Elizabethtown, Vine Grove
Buying near Fort Knox →
Kentucky questions
Straight answers
Does Kentucky tax military retirement pay?
Partly. Kentucky lets you exclude up to $31,110 of pension income, including military retirement, and some retirees can exclude more based on when they served. VA disability compensation isn't taxed.
What property tax breaks do disabled Veterans get in Kentucky?
Kentucky's disability homestead exemption takes about $49,000 (adjusted every two years) off your home's assessed value if you're rated totally disabled. Rules and amounts can change, so confirm with your local tax office.
Can I use a VA loan anywhere in Kentucky?
Yes. VA loans work in cities, suburbs and rural areas across Kentucky, as long as the home will be your main residence and meets VA property standards. We lend statewide, so we can help wherever you're buying.
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Buying in Kentucky? Let's talk.
One person on our team will confirm you qualify, show you what you can afford and walk you through every step. No cost, no pressure.