Tax Benefits for Veterans, Elderly and Disabled in Virginia

Real Estate Tax Exemption for 100% Disabled Veterans

Virginia offers a real estate tax exemption for veterans who have been rated by the U.S. Department of Veterans Affairs as having a 100% service-connected, permanent, and total disability.

– Eligibility: The veteran must occupy the property as their principal residence.
– Scope: The exemption applies to the dwelling and up to one acre of land.
– Surviving Spouses: The exemption extends to the surviving spouse, provided they do not remarry and continue to occupy the property as their principal residence.
– Portability: As of July 1, 2019, surviving spouses can retain the exemption even if they move to a different principal residence within Virginia.

Personal Property Tax Exemption

Disabled veterans with a 100% service-connected, permanent, and total disability are exempt from personal property taxes on one motor vehicle (passenger car, pickup, or panel truck) that is owned and regularly used by or for the veteran.

Military Retirement Income Tax Subtraction

Virginia allows a subtraction from income for military retirement benefits:
– 2023: Up to $20,000
– 2024: Up to $30,000
– 2025: Up to $40,000

This subtraction applies to military retirement income received by individuals aged 55 and older.

Tax Relief for Elderly and Disabled Residents

Real Estate Tax Relief

Virginia law permits localities to offer real estate tax relief to elderly and disabled residents. While programs vary by locality, common features include:

– Eligibility: Applicants must be at least 65 years old or permanently and totally disabled.
– Income and Asset Limits: Localities set their own thresholds. Examples include:

Fairfax County:
– 100% exemption for incomes up to $60,000
– Graduated relief up to $90,000
– Net worth limit: $400,000 (excluding the home and up to one acre)

Rappahannock County:
– Income limit: $50,000
– Net worth limit: $200,000 (excluding the home and up to ten acres)

Northampton County:
– Income limit: $57,500
– Net worth limit: $115,000

Personal Property Tax Relief

Some localities offer relief for one vehicle owned by an eligible elderly or disabled resident. For instance, Fairfax County provides this to residents who meet specific income and asset criteria.

Rent Relief

Certain jurisdictions, like Fairfax County, offer rent relief programs for elderly and disabled renters who meet income and asset guidelines.

Recent Legislative Updates

In November 2024, Virginia voters approved a constitutional amendment to expand property tax exemptions. The amendment changed the eligibility language from “killed in action” to “died in the line of duty,” extending benefits to surviving spouses of service members who died while performing their duties, not just in combat.

Application Process

To apply for these tax relief programs:

1. Contact Local Authorities: Reach out to your local Commissioner of the Revenue or tax office to obtain application forms and guidance.
2. Prepare Documentation: Provide proof of age or disability, income, and property ownership records.
3. Submit Applications: Be aware of local deadlines. For example, Fairfax County’s application deadline for returning applicants is May 1, 2025, with extensions possible under certain hardship conditions.