If you serve, have served, or are married to someone who has, a Virginia veteran property tax exemption can take a real bite out of your yearly housing cost. Virginia is one of the more military-friendly states in the country, with a full property tax break for some disabled veterans and their surviving spouses, plus state income tax breaks on certain military pay. This guide walks through the main rules in plain language, points you to the state's own sources, and shows you where to apply. Tax rules change, so treat this as a starting map, not the final word.
The Virginia Disabled Veteran Property Tax Exemption
Virginia's biggest property tax benefit for veterans comes from the state Constitution and the Code of Virginia. If the U.S. Department of Veterans Affairs (the federal agency that handles veteran benefits) has rated you with a 100 percent service-connected, permanent and total disability, you can be fully exempt from real estate tax on your home. "Service-connected" means the disability is tied to your service. "Permanent and total" (often shortened to P&T) means the VA does not expect it to improve.
The exemption covers your principal place of residence plus up to one acre of land. If your city or county already allows an exemption on more than one acre under its other rules, it must give disabled veterans that same acreage. Veterans whom the VA pays at the 100 percent level due to individual unemployability, and who are rated permanent and total, also qualify. See the Virginia Department of Veterans Services real estate tax exemption page and Va. Code 58.1-3219.5.
Surviving Spouses
The exemption can also follow a surviving spouse. If the veteran was eligible and died on or after January 1, 2011, the surviving spouse keeps the exemption as long as they do not remarry and the home stays their principal residence. As of July 1, 2019, a surviving spouse can even move to a different Virginia locality and take the exemption along.
Virginia also exempts the home of the surviving spouse of a service member who died in the line of duty. Until recently this applied to members "killed in action." Effective January 1, 2025, the rule changed to cover those who "died in the line of duty" with a determination from the U.S. Department of Defense, which is a broader group. You can read the current language on the Virginia Department of Veterans Services tax exemptions page.
How It Works With Local Property Taxes and Homestead Relief
In Virginia, property tax is not collected by the state. It is levied and administered locally, by each city or county. The state sets the rules for the disabled veteran exemption, but you claim it through your local commissioner of the revenue (the official who handles property and tax records). That is why two neighbors in different counties can have different tax bills even with the same benefit.
A quick word on "homestead." In many states, a "homestead exemption" is a standard discount any primary-home owner can claim. Virginia does not have a broad statewide one. Instead, the major relief for veterans is the disabled veteran exemption above, tied to your principal residence (your homestead in plain terms). Some localities also offer their own relief programs for older or disabled residents, so ask your commissioner of the revenue what your city or county offers on top of the state benefit. If you are weighing where to land, our guides to a PCS to Naval Station Norfolk and a PCS to Fort Lee can help you picture the local cost of living. PCS, by the way, stands for Permanent Change of Station, the military's term for an ordered move.
Military Pay and Virginia State Income Tax
Virginia does have a state income tax, so how your military pay is treated matters. The good news is the state subtracts several kinds of military income before taxing you.
Active-Duty Basic Pay
Virginia lets eligible active-duty members subtract up to $15,000 of military basic pay. There is a phase-out: for every dollar of basic pay above $15,000, the subtraction drops by a dollar, and it disappears once basic pay reaches $30,000. You must be on active duty for 90 days or more, inside or outside Virginia. See the Virginia Tax subtractions page and the Military Tax Tips page.
Military Retirement Pay
Virginia has been expanding its Military Benefits Subtraction, sometimes called the Military Retirement Subtraction. For the 2025 tax year and later, you can subtract up to $40,000 of eligible military benefits. This covers military retirement income for service in the Armed Forces, plus certain benefits paid to a veteran's surviving spouse, including Survivor Benefit Plan payments. An earlier age requirement (the benefit once applied only to those 55 and older) was removed starting with the 2024 tax year, so age no longer limits the subtraction. The income must already be on your federal return, and you cannot claim another break for the same income. See the Virginia Tax Military Benefits Subtraction FAQ for current figures.
One note many families miss: VA disability compensation is not taxed federally, and because it is not part of your federal income, Virginia does not tax it either.
A Note for Military Spouses: MSRRA
If you are a military spouse, the MSRRA matters for where you pay income tax. MSRRA stands for the Military Spouse Residency Relief Act, a federal law that lets a service member's spouse keep a home state for tax purposes even after a PCS move pulls the family to a new state. Under the related federal rules, a service member, their spouse, or both can choose the service member's home state, the spouse's home state, or the service member's permanent duty station for residency.
