Virginia Veteran Tax Benefits 2025: Property Tax, Income Tax & Exemptions

Bottom Line Up Front

Virginia offers some of the nation's most generous veteran tax benefits in 2025. Veterans rated 100% disabled by the VA pay ZERO property taxes on their primary residence and one vehicle. ALL military retirees can subtract $40,000 from Virginia taxable income starting in 2025 (up from $30,000 in 2024), regardless of age. These benefits can save you $3,000-$8,000+ annually depending on your locality. A 100% disabled veteran in Fairfax County with a $500,000 home saves approximately $5,000/year in property taxes alone—that's $100,000+ over 20 years.

Military Retirement Income Tax Subtraction: $40,000 in 2025

The Numbers That Matter

For tax year 2025, Virginia resident veterans can subtract $40,000 of military retirement income from their Virginia taxable income. This increased from $30,000 in 2024. This is a permanent subtraction that applies year after year.

2024 Tax Year: $30,000 subtraction 2025 Tax Year and Beyond: $40,000 subtraction

Who Qualifies?

• ALL military retirees, regardless of age (age requirement was removed beginning with the 2024 tax year)
• Includes retired members of the U.S. Armed Forces, U.S. Armed Forces Reserves, and National Guard
• Must be a Virginia resident
• Only applies to military retirement pay included in your federal adjusted gross income

What Counts as Military Retirement Income?

ELIGIBLE:

• Military retired pay
• Reserve Component Survivor Benefit Plan (RCSBP)
• Survivor Benefit Plan (SBP) payments to surviving spouses
• Military pension annuities

NOT ELIGIBLE:

• Thrift Savings Plan (TSP) distributions
• VA disability compensation (already tax-free federally)
• Civilian federal retirement (FERS/CSRS)
• Social Security benefits

Calculate Your Tax Savings

Virginia's top income tax rate is 5.75%. Here's what the $40,000 subtraction saves you:

Annual Tax Savings: $40,000 × 5.75% = $2,300/year

10-Year Savings: $23,000 20-Year Savings: $46,000 30-Year Savings: $69,000

If you're married filing jointly with two military retirees, each spouse can claim the subtraction:

Combined Annual Savings: $80,000 × 5.75% = $4,600/year 20-Year Combined Savings: $92,000

How to Claim the Subtraction

File Virginia Form 760 (resident return) and claim the military benefits subtraction on Schedule ADJ. You'll need:

1. Your federal adjusted gross income from Form 1040
2. Documentation of military retirement income (1099-R)
3. DD Form 214 or equivalent proving honorable discharge

Important: This is a subtraction, not a deduction. It reduces your Virginia taxable income before calculating your tax liability.

100% Disabled Veteran Real Property Tax Exemption

The Complete Tax Exemption

Virginia exempts from taxation the entire value of real property owned and occupied as the principal residence by a veteran rated by the U.S. Department of Veterans Affairs as having a 100% service-connected, permanent and total disability.

Eligibility Requirements

You qualify if you meet ALL of the following:

1. VA Rating: 100% service-connected, permanent and total disability rating from the VA
2. Alternative Rating: OR less than 100% service-connected but receiving VA benefits at the 100% rate due to individual unemployability (TDIU)
3. Residency: The property must be your principal place of residence
4. Ownership: You must own the property (sole ownership or joint with spouse)

What's Covered?

• Your primary residence (house, condo, townhome, mobile home)
• Up to one acre of land upon which the residence sits
• No dollar value limit—whether your home is worth $200,000 or $2,000,000, it's fully exempt

Property Tax Savings by Locality (2024-2025 Rates)

Here's what this exemption saves 100% disabled veterans annually based on a median home value in each locality:

Fairfax County

• Median Home Value: $600,000
• Tax Rate: $1.09 per $100 assessed value
• Annual Savings: $6,540
• 20-Year Savings: $130,800

Virginia Beach

• Median Home Value: $376,500
• Tax Rate: $1.00 per $100 assessed value
• Annual Savings: $3,765
• 20-Year Savings: $75,300

Norfolk

• Median Home Value: $295,000
• Tax Rate: $1.14 per $100 assessed value
• Annual Savings: $3,363
• 20-Year Savings: $67,260

Arlington County

• Median Home Value: $700,000
• Tax Rate: $0.991 per $100 assessed value
• Annual Savings: $6,937
• 20-Year Savings: $138,740

Richmond

• Median Home Value: $424,995
• Tax Rate: $1.20 per $100 assessed value
• Annual Savings: $5,100
• 20-Year Savings: $102,000

Chesapeake

• Median Home Value: $330,000
• Tax Rate: $1.20 per $100 assessed value
• Annual Savings: $3,960
• 20-Year Savings: $79,200

Alexandria

• Median Home Value: $550,000
• Tax Rate: $1.13 per $100 assessed value
• Annual Savings: $6,215
• 20-Year Savings: $124,300

Loudoun County

• Median Home Value: $675,000
• Tax Rate: $1.045 per $100 assessed value
• Annual Savings: $7,054
• 20-Year Savings: $141,080

Surviving Spouse Benefits

The exemption continues for surviving spouses if:

1. The veteran's death occurred on or after January 1, 2011
2. The surviving spouse does not remarry
3. The surviving spouse continues to occupy the property as their principal residence
4. NEW as of 2019: Surviving spouses can move to a different Virginia locality and take the exemption with them

How to Apply

Step 1: Contact your local Commissioner of Revenue's office

Step 2: Submit these documents:

• Completed application for disabled veteran real property tax exemption
• VA Benefit Summary Letter showing 100% permanent and total disability rating
• DD Form 214 (discharge papers)
• Proof of property ownership (deed)
• Proof of residency (driver's license, voter registration)

Step 3: Receive approval and exemption

Timing: Apply as soon as you receive your 100% rating. Most localities prorate the exemption for the year in which you qualify. Some localities offer pre-certification for veterans purchasing a home.

Key Contacts by Locality

Fairfax County Department of Tax Administration 12000 Government Center Parkway, Suite 223 Fairfax, VA 22035 Phone: (703) 222-8234 Email: taxrelief@fairfaxcounty.gov

Virginia Beach Commissioner of the Revenue Municipal Center, Building One 2401 Courthouse Drive Virginia Beach, VA 23456 Phone: (757) 385-4321

Norfolk Commissioner of the Revenue City Hall Building, Room 125 810 Union Street Norfolk, VA 23510 Phone: (757) 664-4500

Arlington County Commissioner of the Revenue 2100 Clarendon Boulevard, Suite 200 Arlington, VA 22201 Phone: (703) 228-3060

Richmond Commissioner of the Revenue City Hall, Room 101 900 East Broad Street Richmond, VA 23219 Phone: (804) 646-5616

Chesapeake Commissioner of the Revenue 306 Cedar Road Chesapeake, VA 23322 Phone: (757) 382-6381

Alexandria Commissioner of the Revenue 301 King Street, Room 1700 Alexandria, VA 22314 Phone: (703) 746-4880

Personal Property (Vehicle) Tax Exemption for Disabled Veterans

One Vehicle, Zero Taxes

Effective January 1, 2021, Virginia exempts from local personal property taxes one motor vehicle owned and used primarily by or for a veteran with a 100% service-connected, permanent and total disability.

Eligibility

You qualify if you:

1. Have a 100% service-connected, permanent and total disability rating from the VA (OR receiving benefits at 100% due to unemployability)
2. Own the vehicle (not leased)
3. The vehicle is used primarily by or for you
4. The vehicle is classified as a passenger car or pickup truck

Alternative Ownership: The vehicle may be owned by your spouse and still qualify if used primarily by or for you.

Eligible Vehicles

COVERED:

• Passenger cars (sedans, coupes)
• SUVs and crossovers
• Pickup trucks with gross weight of 10,000 pounds or under
• Vans

NOT COVERED:

• Motorcycles
• Trailers
• Mopeds
• Autocycles
• Commercial vehicles
• Leased vehicles

Personal Property Tax Savings

Vehicle personal property tax rates and average savings by locality (based on a $30,000 vehicle value):

Fairfax County

• Tax Rate: $4.13 per $100 assessed value
• Annual Savings: $1,239
• 10-Year Savings: $12,390 (assuming declining vehicle value)

Virginia Beach

• Tax Rate: $4.00 per $100 assessed value
• Annual Savings: $1,200
• 10-Year Savings: $12,000

Norfolk

• Tax Rate: $4.00 per $100 assessed value
• Annual Savings: $1,200
• 10-Year Savings: $12,000

Arlington County

• Tax Rate: $5.00 per $100 assessed value
• Annual Savings: $1,500
• 10-Year Savings: $15,000

Richmond

• Tax Rate: $3.70 per $100 assessed value
• Annual Savings: $1,110
• 10-Year Savings: $11,100

Chesapeake

• Tax Rate: $4.00 per $100 assessed value
• Annual Savings: $1,200
• 10-Year Savings: $12,000

Alexandria

• Tax Rate: $5.00 per $100 assessed value
• Annual Savings: $1,500
• 10-Year Savings: $15,000

How to Apply

Contact your local Commissioner of the Revenue to apply. You'll need:

1. Completed personal property tax exemption application for disabled veterans
2. VA Benefit Summary Letter showing 100% permanent and total disability
3. Vehicle registration
4. Proof of ownership (title)

Important: If you own multiple vehicles, you must designate which one receives the exemption. You can change the designated vehicle annually.

Sales and Use Tax (SUT) Exemption for Vehicle Purchase

One-Time Vehicle Purchase Exemption

Veterans with a 100% service-connected, permanent and total disability are eligible for a one-time exemption from Virginia's 4.15% Sales and Use Tax when purchasing a vehicle.

The Dollar Value

Virginia's Motor Vehicle Sales and Use Tax is 4.15% of the vehicle's gross sales price, with a minimum of $75.

Example Savings:

• $25,000 vehicle: $1,037.50 tax saved
• $35,000 vehicle: $1,452.50 tax saved
• $45,000 vehicle: $1,867.50 tax saved
• $55,000 vehicle: $2,282.50 tax saved

Eligibility Requirements

1. 100% service-connected, permanent and total disability rating from the VA
2. Vehicle will be owned and used primarily by or for the qualifying veteran
3. Vehicle is a passenger car or pickup truck with gross weight of 10,000 pounds or under
4. Not eligible for motorcycles, trailers, mopeds, or autocycles

Can You Use It More Than Once?

Yes! If you sell or trade in the vehicle on which you used the exemption, you can use it again on your next vehicle purchase. The exemption is tied to vehicle ownership, not lifetime usage.

How to Claim at Purchase

Step 1: Bring these documents to the DMV when titling your newly purchased vehicle:

• Vehicle title and standard documentation required to title a vehicle
• Completed Purchaser's Statement of Exemption (Form SUT-3)
• VA Benefit Summary Letter showing 100% permanent and total disability rating

Step 2: The DMV will process your exemption and you'll pay no Sales and Use Tax

Timing: Must be claimed at the time of vehicle titling.

DMV Fee Waivers and License Plate Benefits

Disabled Veteran License Plates

Virginia offers special license plates for disabled veterans at no charge.

Available Plates:

• Disabled Veteran (DV) plates - Free
• Purple Heart plates - Free for Purple Heart recipients
• Congressional Medal of Honor plates - Free

Benefits:

• No annual registration fee
• Free parking at metered spaces statewide (local ordinances may vary)
• Exemption from certain parking restrictions

How to Apply: Contact Virginia DMV with:

• DD Form 214 showing honorable discharge
• VA documentation of disability rating
• Standard vehicle registration documents

Phone: (804) 497-7100 Website: www.dmv.virginia.gov

Locality-Specific Benefits and Variations

Fairfax County Enhanced Benefits

Fairfax County offers some additional considerations for disabled veterans:

Tax Relief Programs:

• Real Estate Tax Relief for elderly and disabled (income-based, separate from veteran exemption)
• Pre-certification program for veterans purchasing a home (allows you to secure exemption approval before buying)

Application Efficiency:

• Online application submission available
• Typically processes exemptions within 30 days
• Dedicated tax relief specialists for veterans

Contact for Pre-Certification: Email: taxrelief@fairfaxcounty.gov Phone: (703) 222-8234

Virginia Beach Veteran Services

Virginia Beach has a dedicated Veteran Services Division that assists with tax exemptions:

Office of Veteran Services Municipal Center, Building 19, 1st Floor 2412 Courthouse Drive Virginia Beach, VA 23456 Phone: (757) 385-8397 Email: vetservices@vbgov.com

Services:

• Free assistance with tax exemption applications
• Benefits counseling
• Connection to additional local veteran resources

Norfolk Expedited Processing

Norfolk offers expedited processing for disabled veteran tax exemptions:

Processing Time: 10-15 business days for complete applications Retroactive Benefits: Can apply retroactively to the beginning of the tax year in which you became eligible

Military Liaison: Norfolk Veterans Services Office 810 Union Street, Suite 600 Norfolk, VA 23510 Phone: (757) 664-4529

Arlington County Special Provisions

Arlington County provides additional support:

Assistance Programs:

• Free document preparation assistance
• Translation services available
• Home visit services for mobility-impaired veterans

Arlington Office of Veterans Affairs 2100 Washington Boulevard Arlington, VA 22204 Phone: (703) 228-5865

Richmond Regional Benefits

Richmond offers coordinated services with the Hunter Holmes McGuire VA Medical Center:

Benefits Coordinators:

• VA-accredited counselors assist with state tax exemption applications
• Located at VA medical center for convenience
• Free appointments available

Combined Tax Benefits: Total Annual Savings

Here's what you save annually by combining all available Virginia veteran tax benefits:

100% Disabled Veteran in Fairfax County

• Military retirement income tax subtraction ($40,000): $2,300
• Real property tax exemption ($600,000 home): $6,540
• Vehicle property tax exemption: $1,239
• TOTAL ANNUAL SAVINGS: $10,079
• 20-YEAR SAVINGS: $201,580

100% Disabled Veteran in Virginia Beach

• Military retirement income tax subtraction ($40,000): $2,300
• Real property tax exemption ($376,500 home): $3,765
• Vehicle property tax exemption: $1,200
• TOTAL ANNUAL SAVINGS: $7,265
• 20-YEAR SAVINGS: $145,300

100% Disabled Veteran in Arlington

• Military retirement income tax subtraction ($40,000): $2,300
• Real property tax exemption ($700,000 home): $6,937
• Vehicle property tax exemption: $1,500
• TOTAL ANNUAL SAVINGS: $10,737
• 20-YEAR SAVINGS: $214,740

Military Retiree (Not 100% Disabled) in Richmond

• Military retirement income tax subtraction ($40,000): $2,300
• ANNUAL SAVINGS: $2,300
• 20-YEAR SAVINGS: $46,000

Tax Benefits Comparison: Virginia vs. Neighboring States

How Virginia Stacks Up

Virginia:

• $40,000 military retirement subtraction (2025)
• 100% property tax exemption for 100% disabled veterans
• Vehicle tax exemption
• Sales tax exemption on vehicle purchase

Maryland:

• $5,000 military retirement subtraction
• Property tax exemption up to $200,250 for 100% disabled veterans (as of 2024)
• No vehicle tax exemption

North Carolina:

• $4,000 military retirement deduction (age 55+)
• Property tax exemption for 100% disabled veterans (first $45,000 of assessed value)
• No vehicle tax exemption

West Virginia:

• $2,000 military retirement exemption
• Property tax exemption for 100% disabled veterans (up to $20,000)
• No vehicle tax exemption

Tennessee:

• No state income tax
• Property tax relief varies by county
• No statewide vehicle tax exemption program

Virginia's Advantages:

• Highest military retirement income subtraction in the region
• Most generous property tax exemption (no dollar cap)
• Only state with comprehensive vehicle tax benefits
• No age restrictions on income subtraction

Lesser-Known Tax Benefits

Partial Disability Property Tax Relief

Some Virginia localities offer property tax relief for veterans with disability ratings below 100%. While not state-mandated, check with your local Commissioner of Revenue.

Example Localities with Partial Relief:

• Loudoun County: Graduated relief based on disability rating
• Prince William County: Relief for veterans rated 50% or higher
• Spotsylvania County: Graduated relief starting at 50%

Business Property Tax Exemptions

Some localities extend real property tax exemptions to business property owned by 100% disabled veterans. Contact your local Commissioner of Revenue.

Historic Rehabilitation Tax Credits

Virginia offers additional state historic rehabilitation tax credits. If you're a disabled veteran rehabilitating a historic property as your primary residence, you may qualify for both the veteran exemption AND historic tax credits.

Conservation Easement Benefits

Veterans who place conservation easements on their property may qualify for additional tax benefits while maintaining their veteran property tax exemption.

Filing Requirements and Deadlines

Annual Applications

First-Time Filers:

• Apply as soon as you receive your 100% disability rating
• Most localities accept applications year-round
• Exemption often applies to the full tax year in which approved

Renewal Requirements:

• Real Property Tax Exemption: Most localities do NOT require annual renewal once approved
• Vehicle Tax Exemption: Some localities require annual confirmation
• Income Tax Subtraction: Claim annually on your state tax return

Important Deadlines

Real Property Tax Exemption:

• Applications accepted year-round in most localities
• Apply by December 31 for full benefit in the following tax year
• Some localities allow retroactive applications for up to 3 years

Vehicle Tax Exemption:

• Apply when you receive your annual vehicle tax bill
• Most localities allow application by the tax due date for full year benefit

Income Tax Return:

• Virginia returns are due May 1 (or next business day if May 1 falls on a weekend)
• File Form 760 with Schedule ADJ for military subtraction

Records to Maintain

Keep these documents for at least 5 years:

1. VA Benefit Summary Letters (get a new one annually)
2. DD Form 214
3. Property deeds and vehicle titles
4. Tax returns (state and federal)
5. Correspondence with Commissioners of Revenue
6. 1099-R forms showing military retirement income

What Happens When You Move Within Virginia?

Relocating to a Different Virginia Locality

Good News: Your benefits transfer with you!

Real Property Tax Exemption:

• Notify your new locality's Commissioner of Revenue within 30 days
• Submit new application with same documentation
• Exemption typically applies immediately to new property
• As of 2019, surviving spouses can transfer exemption between localities

Vehicle Tax Exemption:

• Update vehicle registration with DMV to new address
• Notify new locality's Commissioner of Revenue
• Exemption continues on the same vehicle

Income Tax Subtraction:

• No action needed as long as you remain a Virginia resident
• Continue claiming on annual state return

Moving to Virginia from Another State

Timeline for Establishing Benefits:

Day 1: You're a Virginia resident (military members can claim Virginia as home of record)

Within 30 Days:

• Obtain Virginia driver's license
• Register vehicles in Virginia
• Register to vote in Virginia

After Establishing Residency:

• Apply for real property tax exemption with your locality
• Apply for vehicle tax exemption
• File Virginia resident tax return for income subtraction

First Year Prorations: Most localities prorate benefits based on the date you establish residency and purchase property.

Common Mistakes and How to Avoid Them

Mistake #1: Not Applying Because You Think You Don't Qualify

Reality: Many veterans with TDIU (Total Disability Individual Unemployability) don't realize they qualify. If the VA pays you at the 100% rate, you're eligible—even if your combined rating is less than 100%.

Solution: Check your VA Benefit Summary Letter. If it shows you're receiving compensation at the 100% rate, apply.

Mistake #2: Claiming TSP Distributions as Military Retirement

Reality: TSP distributions are NOT eligible for the military retirement income subtraction.

Solution: Only claim actual military retirement pay (shown on your 1099-R from DFAS with distribution code 7). TSP distributions use a different 1099-R from your TSP provider.

Mistake #3: Not Applying for Vehicle Exemption Because You Lease

Reality: Leased vehicles don't qualify, but many veterans continue paying property taxes on owned vehicles thinking they don't qualify.

Solution: If you own your vehicle (have the title), you qualify. Apply even if you're financing it.

Mistake #4: Waiting Until Age 55 to Claim Income Subtraction

Reality: The age requirement was eliminated starting with the 2024 tax year.

Solution: If you're receiving military retirement pay, claim the subtraction regardless of your age. If you filed 2024 taxes before April 2025, consider amending if you didn't claim the full $30,000 subtraction.

Mistake #5: Not Applying Because Your Rating is Pending Appeal

Reality: If you're currently receiving benefits at the 100% rate (even if you're appealing for a higher rating or different effective date), you qualify now.

Solution: Apply with your current VA Benefit Summary Letter showing 100% payment rate.

Mistake #6: Thinking Surviving Spouse Benefits End If You Move

Reality: As of 2019, surviving spouses can relocate to a different Virginia locality and maintain their exemption.

Solution: When moving, apply with your new locality within 30 days. Include documentation showing you had the exemption in your previous locality.

Mistake #7: Not Claiming the Vehicle Purchase SUT Exemption

Reality: Many 100% disabled veterans pay the 4.15% sales tax because they don't know about the exemption.

Solution: Bring your VA documentation to the DMV when titling ANY vehicle purchase. The exemption can be used multiple times (once per vehicle you own).

Mistake #8: Assuming Your Spouse Doesn't Qualify After You Pass Away

Reality: Surviving spouses maintain ALL veteran tax benefits if they don't remarry and maintain the property as their primary residence.

Solution: Ensure your spouse knows about these benefits and has copies of all necessary documentation.

Frequently Asked Questions

Income Tax Questions

Q: I retired from the military and also receive VA disability compensation. Can I subtract both?

A: VA disability compensation is already tax-free federally and at the state level—you don't report it as income at all. You can subtract up to $40,000 of your military retirement pay (the taxable portion that DFAS pays you) from Virginia taxable income in 2025.

Q: I receive a military pension and also work a civilian job. Can I still claim the $40,000 subtraction?

A: Yes. The subtraction applies to your military retirement income regardless of other income sources.

Q: My military retirement pay is only $25,000 per year. Can I claim the full $40,000 subtraction?

A: No. You can only subtract the amount of military retirement income you actually received. If you received $25,000 in military retired pay, you can subtract $25,000.

Q: I'm a surviving spouse receiving SBP. Can I claim the subtraction?

A: Yes. Surviving spouses receiving Survivor Benefit Plan payments can subtract up to $40,000 of SBP income starting in 2025.

Q: Does the subtraction phase out at higher income levels?

A: No. There is no income limit or phase-out. All military retirees can claim the subtraction regardless of total income.

Q: I moved to Virginia in July 2024. Can I claim the full subtraction?

A: You can only subtract military retirement income earned while you were a Virginia resident. If you moved mid-year, prorate your military retirement income based on residency duration.

Property Tax Exemption Questions

Q: I'm rated 90% by the VA. Do I qualify for the property tax exemption?

A: You qualify if you're receiving compensation at the 100% rate due to unemployability (TDIU), even if your combined rating is 90%. Check your VA Benefit Summary Letter—if it shows payment at the 100% rate, you qualify.

Q: I own a home and a rental property. Can I exempt both?

A: No. The exemption only applies to your principal residence—the property you occupy as your primary home.

Q: My wife and I jointly own our home. Does the exemption apply to the full value?

A: Yes. The exemption applies to the entire property value regardless of ownership structure (sole, joint with spouse, or tenancy by the entirety).

Q: We own a home on 5 acres. Is all the land exempt?

A: No. The exemption covers your home and up to one acre of land. The remaining 4 acres would be subject to property tax.

Q: I'm 100% disabled and my wife is a 50% disabled veteran. Can we stack exemptions?

A: No. Only one exemption applies per property. However, the 100% exemption covers the full property value.

Q: I got my 100% rating in August. Do I pay property taxes for the whole year?

A: Most localities prorate the exemption based on when your rating became effective. If you got your rating in August, you'd typically owe property taxes for January-July and be exempt August-December.

Q: Can I apply for the exemption before I buy a home?

A: Yes! Some localities (like Fairfax County) offer pre-certification. This helps when applying for a mortgage, as lenders can factor in the tax savings.

Q: I'm buying a $800,000 home. Is there any cap on the exemption?

A: No. Virginia has no dollar cap on the exemption. Whether your home is worth $200,000 or $2,000,000, the full value is exempt if you qualify.

Vehicle Tax Exemption Questions

Q: I own three vehicles. Can I exempt all of them?

A: No. The exemption applies to one vehicle only. You designate which vehicle receives the exemption.

Q: Can I change which vehicle is exempt each year?

A: Yes. Contact your local Commissioner of Revenue before the tax year to designate a different vehicle.

Q: My truck is registered to my business. Can I exempt it?

A: The vehicle must be used primarily by or for you personally. Business vehicles typically don't qualify, but check with your Commissioner of Revenue about mixed-use vehicles.

Q: I bought a new car and used the sales tax exemption. Can I also exempt it from annual property tax?

A: Yes! These are separate benefits. You can use the sales tax exemption when you purchase the vehicle AND designate it for the annual property tax exemption.

Q: Does my spouse's vehicle qualify if it's titled only in their name?

A: Yes, as long as the vehicle is used primarily by or for you.

Q: I lease my car. Can I exempt it from property tax?

A: No. The exemption only applies to vehicles you own (not lease).

Q: I have a motorcycle and a car. Can I exempt the motorcycle?

A: No. The exemption specifically excludes motorcycles. Only passenger cars and pickup trucks (under 10,000 lbs) qualify.

Sales Tax Exemption Questions

Q: I used the sales tax exemption when I bought my truck in 2022. Can I use it again?

A: Yes! If you sell or trade in that truck and buy another vehicle, you can use the exemption again.

Q: Do I have to buy from a dealer to get the sales tax exemption?

A: No. The exemption applies whether you buy from a dealer or private party. You claim it at the DMV when you title the vehicle.

Q: I bought a car last month and paid the sales tax. Can I get a refund?

A: Possibly. Contact the DMV immediately. If the vehicle hasn't been titled yet or was very recently titled, they may be able to process a refund. After titling is complete, refunds become very difficult.

Q: Does the exemption apply to vehicle registration fees?

A: No. The sales tax exemption only applies to the 4.15% Motor Vehicle Sales and Use Tax. Registration fees are separate.

Administrative Questions

Q: How long does it take to get approved for the property tax exemption?

A: Processing times vary by locality:

• Fairfax County: 30 days typically
• Virginia Beach: 2-4 weeks
• Norfolk: 10-15 business days
• Arlington: 3-4 weeks
• Richmond: 4-6 weeks

Q: Do I need to reapply every year?

A: For property tax exemptions, most localities do NOT require annual reapplication. For vehicle tax exemptions, some localities send annual confirmation forms. Income tax subtraction must be claimed annually on your tax return.

Q: What if my disability rating is reduced?

A: If the VA reduces your rating below 100% payment status, you must notify your Commissioner of Revenue immediately. The exemption ends, and you'll owe property taxes from the effective date of the reduction.

Q: I'm a surviving spouse who remarried. Do I lose the exemption?

A: Yes. If you remarry, you lose eligibility for the surviving spouse exemption from the date of remarriage.

Q: My VA rating says "permanent and total" but doesn't specifically say "100%." Do I qualify?

A: Check your VA Benefit Summary Letter for the compensation rate. If it shows you're being paid at the 100% rate (even with a combined rating less than 100%), you qualify.

Q: Can I get help applying for these benefits?

A: Yes. Contact:

• Your local Commissioner of Revenue (most offer free application assistance)
• Virginia Department of Veterans Services: (804) 786-0286
• County/city veteran services offices
• Veterans Service Organizations (VFW, American Legion, DAV)
• VA accredited attorneys or agents

Resources and Contact Information

Virginia Department of Veterans Services

Main Office: 101 North 14th Street, 17th Floor Richmond, VA 23219 Phone: (804) 786-0286 Website: www.dvs.virginia.gov Email: vdvs@dvs.virginia.gov

Benefits Services: Phone: (804) 786-0286 Hours: Monday-Friday, 8:00 AM - 5:00 PM

Virginia Department of Taxation

Customer Services: 600 East Main Street Richmond, VA 23219 Phone: (804) 367-8031 Website: www.tax.virginia.gov

Military Benefits Questions: Phone: (804) 367-8031 Email: Tax.TheMilitaryFAQ@tax.virginia.gov

Virginia DMV

General Information: Phone: (804) 497-7100 Website: www.dmv.virginia.gov

Disabled Veteran Services: Phone: (804) 497-7100 Select option for "Disabled Veteran Plates and Benefits"

Regional VA Benefits Offices

Roanoke Regional Office 116 N. Jefferson Street Roanoke, VA 24016 Phone: 1-800-827-1000

No appointments needed for walk-ins (Monday-Friday, 8:00 AM - 4:00 PM)

County/City Commissioner of Revenue Offices

All Virginia localities have Commissioners of Revenue who administer tax exemptions. Contact information listed earlier in this guide under "Key Contacts by Locality."

Veterans Service Organizations

Virginia Department of Veterans Services - Benefits Counseling Free assistance with benefit applications statewide Phone: (804) 786-0286

Disabled American Veterans (DAV) - Virginia Multiple chapters statewide offering free benefits assistance Website: www.virginiadav.org

The American Legion - Department of Virginia Free service officers at posts throughout Virginia Phone: (804) 353-6606 Website: www.valegion.org

Veterans of Foreign Wars (VFW) - Virginia Service officers available at posts statewide Website: www.vfwva.org

Legislative Changes and Future Outlook

2024 Legislative Wins

Virginia veterans saw significant tax benefits improvements in 2024:

Senate Bill 10 (2024):

• Increased military retirement subtraction from $10,000 to $30,000 for 2024
• Further increase to $40,000 for 2025 and beyond
• Removed age 55 requirement
• Extended subtraction to surviving spouses

Impact: An estimated 185,000 Virginia military retirees benefit from this expansion, representing approximately $350 million in tax relief over the first five years.

Potential Future Changes

Under Discussion for 2025-2026 Legislative Session:

1. Graduated Property Tax Relief: Some legislators are proposing graduated property tax relief for veterans with disability ratings between 50-99%

2. Expanded Vehicle Exemption: Proposals to expand the vehicle exemption to include motorcycles and recreational vehicles

3. Business Property Extensions: Extending real property exemptions to business property owned and operated by disabled veterans

4. Increased Income Subtraction: Some veteran advocacy groups are pushing to increase the military retirement subtraction to $50,000 by 2027

How to Stay Informed

Virginia General Assembly Website:

• Track bills related to veteran tax benefits
• Website: lis.virginia.gov
• Search: "veteran tax" or "military retirement"

Virginia Department of Veterans Services Newsletter:

• Free email newsletter with legislative updates
• Subscribe: www.dvs.virginia.gov/news

Local Veterans Service Organizations:

• Join VFW, American Legion, or DAV chapters
• Active in legislative advocacy

Advocacy Opportunities

Make Your Voice Heard:

1. Contact Your Delegates: Find your representatives: whosmy.virginiageneralassembly.gov Call, email, or meet during constituent office hours

2. Join Advocacy Organizations:

• Military Officers Association of America (MOAA) - Virginia Council
• Fleet Reserve Association - Virginia branches
• Virginia Coalition of Veteran Service Organizations

3. Attend Town Halls: Most legislators hold veteran-specific town halls Check their websites for schedules

Take Action: Your Next Steps

If You're a 100% Disabled Veteran

This Week:

1. Request current VA Benefit Summary Letter (call 1-800-827-1000 or download from VA.gov)
2. Locate your DD Form 214
3. Identify your property deed and vehicle title

This Month:

1. Contact your Commissioner of Revenue to schedule appointment
2. Complete applications for real property and vehicle tax exemptions
3. Apply for disabled veteran license plates at DMV

This Year:

1. File Virginia tax return claiming $40,000 military retirement subtraction (if applicable)
2. Monitor for approval letters from Commissioner of Revenue
3. Verify exemptions appear on next year's tax bills

If You're a Military Retiree (Not 100% Disabled)

Before April 2025:

1. File 2024 Virginia tax return claiming $30,000 military retirement subtraction
2. Gather 1099-R showing military retirement income
3. Complete Schedule ADJ with Form 760

Before April 2026:

1. File 2025 Virginia tax return claiming $40,000 military retirement subtraction
2. Set reminder to claim annually

If You're a Surviving Spouse

Immediate:

1. Gather veteran's DD Form 214, VA rating documents, and death certificate
2. Contact Commissioner of Revenue about continuing exemptions
3. Ensure property deed reflects your ownership

Within 30 Days of Veteran's Death:

1. Apply for continuation of property tax exemption
2. Apply for continuation of vehicle tax exemption
3. Notify DMV if updating vehicle registration

Conclusion: Virginia Values Veterans

Virginia's veteran tax benefits package is among the nation's most comprehensive. With the 2025 increase to a $40,000 military retirement income subtraction, elimination of age requirements, full property tax exemptions for 100% disabled veterans, and vehicle tax relief, the Commonwealth demonstrates genuine commitment to those who served.

A 100% disabled veteran in Northern Virginia can save $10,000+ annually in combined benefits—over $200,000 in lifetime savings. Even military retirees without VA disability ratings save $2,300 per year in state income taxes starting in 2025.

These aren't hypothetical benefits—they're real dollars back in your pocket, applicable right now. Take action today to claim what you've earned through your service.

Start with one call to your local Commissioner of Revenue. That single call could save you thousands of dollars this year and hundreds of thousands over your lifetime in Virginia.

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This guide is current as of January 2025. Tax laws and regulations change periodically. For the most current information, contact the Virginia Department of Veterans Services at (804) 786-0286 or visit www.dvs.virginia.gov. This guide is for informational purposes only and does not constitute legal or financial advice.

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Sources: VA.gov, Military OneSource, Benefits.gov