Virginia Veteran Tax Exemptions 2026

Virginia treats its disabled veterans with real respect when it comes to taxes. If you've earned a full permanent and total disability rating, the state offers a complete exemption on state income tax, and there's a property tax break on your primary home that can mean serious savings depending on your rating. Knowing what you qualify for, and how to actually claim it, makes a difference you'll feel every year. This page walks through both benefits and the steps to get them.

Does Virginia tax VA disability income?

No. Virginia 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 Virginia.

Virginia property tax exemption for disabled veterans

Full exemption at 100% P&T. 100% P&T means a full property tax exemption.

Virginia's property tax exemption for qualifying disabled veterans applies to your primary residence and can wipe out that bill entirely once you reach the top rating, making it one of the more valuable benefits the state offers.

What rating do you need in Virginia?

The size of your break depends on your combined VA rating. In Virginia, 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 Virginia 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 Virginia 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 Virginia Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.