Military Disability Retirement Pay -- DC Income Tax Exclusion
Military disability retirement pay and VA disability compensation are excluded from DC taxable income.
State BenefitWashington D.C.Tax Benefits
Verified September 30, 2026 against myarmybenefits.us.army.mil
At a glance
- Benefit type
- Tax Benefits — Washington D.C.
- Who it's for
- Veterans
- VA rating needed
- No rating requirement
- Where it applies
- Washington D.C.
- Last verified
- September 30, 2026
What is Military Disability Retirement Pay -- DC Income Tax Exclusion?
Military Disability Retirement Pay -- DC Income Tax Exclusion is a Washington D.C. tax benefits benefit for veterans. Military disability retirement pay and VA disability compensation are excluded from DC taxable income.
Who qualifies
- Veterans
- Available to any veteran
- Washington D.C. residency
Who is eligible
Eligibility
Any veteran receiving VA disability compensation or military disability retirement pay.
What Military Disability Retirement Pay -- DC Income Tax Exclusion covers
Covers
Military disability retirement pay received as a pension, annuity, or similar allowance for personal injury or sickness from active service is excluded from DC taxable income. VA disability compensation and pension payments are also excluded from DC taxable income. DC income tax rates range from 4% to 10.75%.
Important to know
Regular (non-disability) military retirement pay IS fully taxable in DC; the District offers no age-based reduction for military retired pay. SBP annuities are excluded for survivors age 62+.
How to apply for Military Disability Retirement Pay -- DC Income Tax Exclusion
How to apply
Claimed on your DC individual income tax return (Form D-40).
Verified information & sources
- Last verified
- September 30, 2026
- Official source
- myarmybenefits.us.army.mil
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.
How VetUnlock verifies benefitsFrequently asked questions about Military Disability Retirement Pay -- DC Income Tax Exclusion
Who qualifies for Military Disability Retirement Pay -- DC Income Tax Exclusion?
Military Disability Retirement Pay -- DC Income Tax Exclusion is for Veterans; available to any veteran; washington d.c. residency. See the eligibility details on this page and confirm with the official source before applying.
How do I apply for Military Disability Retirement Pay -- DC Income Tax Exclusion?
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Disability Retirement Pay -- DC Income Tax Exclusion?
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.