VA Disability Compensation State Tax Exemption
VA disability payments, pension payments, and survivors benefits are fully excluded from Virginia taxable income.
At a glance
- Benefit type
- Tax Benefits — Virginia
- Who it's for
- Veterans, Survivors
- VA rating needed
- No rating requirement
- Estimated value
- Varies (full federal/state exclusion of VA comp/pension/DIC)
- Where it applies
- Virginia
- Last verified
- May 12, 2026
What is VA Disability Compensation State Tax Exemption?
VA Disability Compensation State Tax Exemption is a Virginia tax benefits benefit for veterans, survivors. VA disability payments, pension payments, and survivors benefits are fully excluded from Virginia taxable income. The listed value is Varies (full federal/state exclusion of VA comp/pension/DIC).
Who qualifies
- Available to any veteran
- Virginia residency
Who is eligible
Eligibility
Any veteran receiving VA disability compensation, VA pension, or survivors benefits.
What VA Disability Compensation State Tax Exemption covers
Covers
Full exclusion from Virginia taxable income. This mirrors federal treatment.
How to apply for VA Disability Compensation State Tax Exemption
How to apply
Automatic -- these amounts are not included in Virginia adjusted gross income.
Verified information & sources
Last verified: May 12, 2026
Official source: dvs.virginia.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
Frequently asked questions about VA Disability Compensation State Tax Exemption
Who qualifies for VA Disability Compensation State Tax Exemption?▾
How much is VA Disability Compensation State Tax Exemption worth?▾
How do I apply for VA Disability Compensation State Tax Exemption?▾
Where can I verify VA Disability Compensation State Tax Exemption?▾
Other Virginia Tax Benefits
Military Retirement Pay Income Tax Subtraction
Subtract up to $40,000 of military retirement income from Virginia taxable income.
Up to $2,300/yr tax savings
Survivor Benefit Plan (SBP) Income Tax Subtraction
Subtract up to $40,000 of SBP annuity income from Virginia taxable income.
Up to $2,300/yr tax savings
Medal of Honor Recipient Full Income Tax Exemption
Complete exemption of all military retirement income from Virginia state income tax for Medal of Honor recipients.
Full exemption of military retirement income
Surviving Spouse Property Tax Exemption (Died in Line of Duty)
Full real property tax exemption for unremarried surviving spouses of service members who died in the line of duty.
$1,000-$10,000+/yr depending on locality
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