VA Disability Compensation State Tax Exemption
VA disability payments, pension payments, and survivors benefits are fully excluded from Virginia taxable income.
Who qualifies
- Available to any veteran
- Virginia residency
How to apply
Varies (full federal/state exclusion of VA comp/pension/DIC)
Apply through the official Virginia agency.
Open applicationDetails
Eligibility
Any veteran receiving VA disability compensation, VA pension, or survivors benefits.
Covers
Full exclusion from Virginia taxable income. This mirrors federal treatment.
How to apply
Automatic -- these amounts are not included in Virginia adjusted gross income.
Always confirm current rates and rules with the Virginia state agency before applying.
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
See every benefit you qualify for in Virginia
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