Survivor Benefit Plan (SBP) Income Tax Subtraction
Subtract up to $40,000 of SBP annuity income from Virginia taxable income.
At a glance
- Benefit type
- Tax Benefits — Virginia
- Who it's for
- Spouses, Survivors
- VA rating needed
- No rating requirement
- Estimated value
- Up to $2,300/yr tax savings
- Where it applies
- Virginia
- Last verified
- May 12, 2026
What is Survivor Benefit Plan (SBP) Income Tax Subtraction?
Survivor Benefit Plan (SBP) Income Tax Subtraction is a Virginia tax benefits benefit for spouses, survivors. Subtract up to $40,000 of SBP annuity income from Virginia taxable income. The listed value is Up to $2,300/yr tax savings.
Who qualifies
- Through veteran sponsor (any rating)
- Virginia residency
Who is eligible
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.
What Survivor Benefit Plan (SBP) Income Tax Subtraction covers
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 for Survivor Benefit Plan (SBP) Income Tax Subtraction
How to apply
Claimed on Virginia state income tax return.
Verified information & sources
Last verified: May 12, 2026
Official source: tax.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 Survivor Benefit Plan (SBP) Income Tax Subtraction
Who qualifies for Survivor Benefit Plan (SBP) Income Tax Subtraction?▾
How much is Survivor Benefit Plan (SBP) Income Tax Subtraction worth?▾
How do I apply for Survivor Benefit Plan (SBP) Income Tax Subtraction?▾
Where can I verify Survivor Benefit Plan (SBP) Income Tax Subtraction?▾
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.
Varies (full federal/state exclusion of VA comp/pension/DIC)
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
Get a personalized list of federal, state, and local veteran benefits based on your service history, disability rating, and Virginia residency — in under 2 minutes.
Find My Virginia Benefits