If you serve in the military or have served, West Virginia recently added one of the more generous property tax breaks in the country for disabled veterans, paid back through the state income tax return. West Virginia is home to the 167th Airlift Wing at Shepherd Field in Martinsburg and the 130th Airlift Wing at McLaughlin Air National Guard Base in Charleston, so it draws military families after a PCS, which is short for Permanent Change of Station, the official military move from one duty station to another. West Virginia handles its newest benefit differently from most states: rather than lowering your home's assessed value, it lets a qualifying veteran claim back the property taxes paid. This guide explains how that works in plain language and points you to the state's own sources. Tax law changes, so treat these figures as a starting point and confirm the current rules before you file.
How West Virginia Helps Disabled Veterans With Property Taxes
West Virginia's signature benefit is not an exemption from assessment. Instead, it gives a refundable credit equal to the property taxes paid on a qualifying veteran's home. The U.S. Department of Veterans Affairs, known as the VA, is the federal agency that rates service-connected disabilities, and a high rating is what unlocks this benefit.
As the West Virginia Tax Division explains, the Disabled Veteran Real Property Tax Credit is a credit for the West Virginia property taxes timely paid on a disabled veteran's homestead, the home used and occupied as a primary residence. Because the credit is refundable, if it is larger than the income tax you owe, the difference comes back to you as a refund.
Who Qualifies
To qualify, an honorably discharged veteran must have a combined service-connected disability rating of 90 to 100 percent, considered permanently and totally disabled by the VA, and must own and occupy the homestead as a primary residence for at least six months. You also have to pay your real property taxes on time, with the first half paid before October 1 and the second half before April 1, so the credit can be based on tax that was actually paid.
How Much the Credit Is Worth
The credit equals the actual West Virginia ad valorem real property tax timely paid on the qualifying veteran's homestead during the income tax year. For a disabled veteran who owns and lives in the home, that can offset the entire property tax bill on the residence. You claim it on your West Virginia Personal Income Tax Return by completing Form DV-1 and entering the total tax paid on the return, attaching your property tax receipts and your VA disability rating letter.
Surviving Spouses
The benefit can carry to a surviving spouse. The widow or widower of a veteran who claimed the credit in a prior year may continue to claim it, as long as the spouse has not remarried, the homestead has not been sold, and the property has not been reclassified. Because the conditions depend on your situation, confirm them with the West Virginia Tax Division before you rely on the benefit.
How It Works With Your Local Tax Bill
Property tax in West Virginia is assessed and collected at the county level, and you still pay that bill when it comes due. The relief from the disabled-veteran credit arrives later: you claim it on your state income tax return, and because the credit is refundable, you can get the full amount back even if it is more than your income tax.
West Virginia also offers a separate, broader benefit. As state law provides, the Homestead Exemption removes the first $20,000 of assessed value of an owner-occupied primary residence for owners who are 65 or older or who are certified as permanently and totally disabled, after a residency requirement. A veteran can use the Homestead Exemption to lower the assessed value and, separately, claim the refundable credit on the tax that remains. If you are weighing where to settle, our guide to the military bases in West Virginia can help you picture the local cost of owning a home in each market.
Military Pay and West Virginia State Income Tax
Because the disabled-veteran benefit runs through the income tax return, it helps to know how West Virginia treats military income. West Virginia has a graduated income tax, but it shields military pay well. Military retirement pay, including Survivor Benefit Plan payments, is exempt from West Virginia income tax. Military pay that is exempt for federal purposes, such as combat pay, is exempt for West Virginia too, and VA disability compensation is not part of your federal income, so the state does not tax it either.
Active-duty pay is otherwise treated under the usual residency rules: a service member who keeps another home state and is stationed in West Virginia on orders is generally not taxed by West Virginia on that pay. Between exempt retirement pay and untaxed VA compensation, many military families owe little or no West Virginia income tax on their service income. Because rates and rules can change, confirm the current details with the West Virginia Tax Division before you file.
A Note for Military Spouses: MSRRA
If you are a military spouse, the Military Spouse Residency Relief Act, known as MSRRA, may matter to you. MSRRA is a federal law that lets a military spouse keep a home state for tax and voting purposes even after moving on military orders. You do not automatically become a West Virginia resident just because your service member got orders here.
