Pennsylvania Veteran Tax Exemptions 2026

Pennsylvania has a property tax exemption built specifically for disabled veterans who own their home, and for those who qualify it can remove the property tax bill entirely. The state exempts military pay from state income tax, so active duty and retirement income gets favorable treatment as well. These benefits exist because the Commonwealth has chosen to put law behind its support for those who served. This page explains who qualifies and walks through the claim process step by step.

Does Pennsylvania tax VA disability income?

No. Pennsylvania does not tax VA disability compensation. The state treats it the same way the federal government does, which means it is left off your taxable income entirely. Whether you are rated 10 percent or 100 percent, your VA disability pay is not taxed by Pennsylvania.

Pennsylvania property tax exemption for disabled veterans

Full exemption at 100% P&T with income limit. 100% P&T plus financial need means a full property tax exemption.

For veterans who meet the qualifying standard, this exemption can clear your property tax completely, which is one of the more straightforward and impactful financial reliefs the state offers.

What rating do you need in Pennsylvania?

The size of your break depends on your combined VA rating. In Pennsylvania, the full break is reserved for veterans at the top rating, usually 100 percent or 100 percent Permanent and Total. Lower ratings may still qualify for a smaller break, so it is worth checking with your county even if you are not yet at 100 percent. Not sure what your combined rating works out to? Run it through our VA disability calculator first, and if you are aiming for the top tier, check whether you qualify for Permanent and Total status.

How to claim your Pennsylvania exemption

1. Confirm your current combined rating and whether it is Permanent and Total. Your VA award letter shows both.
2. Gather your DD-214 and your VA disability award letter. Most Pennsylvania offices ask for both.
3. Contact your county tax assessor for the property tax exemption, and the your state tax agency or Department of Veterans Affairs for the income side.
4. File before your county deadline. Many counties require you to apply once, then renew only if your rating changes.

Always confirm the current figures and deadlines with your county assessor and the Pennsylvania Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.