Survivor Benefit Plan (SBP) Income Tax Subtraction
Subtract up to $40,000 of SBP annuity income from Virginia taxable income.
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Apply directly through the official Virginia agency.
About this benefit
Eligibility
Surviving spouse of a deceased veteran of the U.S. Armed Forces receiving benefits under the Survivor Benefit Plan or similar military survivor benefits. Virginia resident.
Covers
Subtract up to $40,000 from Virginia taxable income for tax year 2025 and later. Worth up to $2,300 in annual tax savings.
How to apply
Claimed on Virginia state income tax return.
Verified against official source
Last checked 2026-04-30 against www.tax.virginia.gov. 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
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
VA Disability Compensation State Tax Exemption
VA disability payments, pension payments, and survivors benefits are fully excluded from Virginia taxable 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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