Updated for 2026 VA Rates · 2.8% COLA · Effective Dec 1, 2025
State Tax · 2026

State Tax Exemption Lookup

Look up your state's 2026 rules for VA disability income tax and veteran property tax exemptions, all 50 states, free, no sign-up.

Your situation

Quick facts

  • Federal: VA disability is 100% tax-free in all 50 states (38 USC 5301)
  • State income tax: Most states don't tax VA disability income
  • Property tax: Many states offer property tax exemptions starting at certain rating levels (often 100%)
  • Sales tax: A few states (TX, OK) offer sales tax exemptions for disabled vets

Common questions

Is VA disability income taxable at the federal level?

No. VA disability compensation is 100% tax-free at the federal level in all 50 states under 38 USC 5301. It is not included in your gross income and does not affect your federal tax return.

Which states don't tax VA disability income?

Most states exempt VA disability from state income tax. States with no state income tax at all include Florida, Texas, Nevada, Washington, South Dakota, Wyoming, Tennessee, and Alaska. Use the lookup above to see your state's specific rules.

What rating do I need for a property tax exemption?

It depends on your state. Many require 100% Permanent & Total (P&T) status for a full exemption. Others start partial exemptions at lower ratings, Illinois at 30%, Texas at 10%. Select your state above to see the exact threshold.

Do I need to be 100% P&T to get the best exemption?

In many states, yes, the largest property tax breaks require Permanent & Total status. Use our P&T eligibility checker to see if your rating and conditions qualify before contacting your county assessor.